Ripple vs. the Bitcoin Libertarians

Ripple is ‘Bitcoin without the libertarian agenda’

Recently, I had the good fortune of doing an interview with 30-year-old coder Luke Cyca, the founder of Ripli.ca. The interview’s stuck with me for a few reasons. First, he used the phrase ‘bitcoin libertarians,’ which just stuck like glue in my mind. Second, it’s a good reminder that the folks doing innovative things in the ripple space really are motivated by the technology – not the earnings potential.

I’d argue that while bitcoin has started institutionalizing, ripple’s still in that beautiful pre-sellout phase. It’s the early days of skateboarding, roller blading and BMX. Long before Camp Woodward and the X Games and Olympic drug testing. It’s people doing something because they’re curious and excited about it. Ripple’s got that wow factor just like bitcoin.

And Ripli.ca is one of the coolest implementions I’ve seen so far on the Ripple network. The site lets users ‘post a secret for sale on the Ripple network.’ The secrets are revealed when the buyer sends payment to the seller.

Bitcoin Libertarians vs. The Rest of the World

The interview with Cyca drove home another point: bitcoin’s got two warring factions. On one side, bitcoin libertarians want bitcoin to operate outside the modern financial system. On the other side, the institutions that are dumping millions of dollars into bitcoin start-ups recognize that bitcoin HAS to be a part of the modern financial system if its ever going to go mainstream. Something tells me the bitcoin libertarians are going to lose.

In Cyca’s words, “ripple is bitcoin without the libertarian agenda.” So while bitcoin has to find a middle ground between what it wants to be and what it CAN be, ripple’s not so encumbered. “Ripple solves these types of problems by being a payment network first, and a currency only incidentally,” Cyca says.

Ripple’s future is bright!

The final thing that the interview with Cyca reminded me is that we haven’t really glimpsed ripple’s true potential. Even Cyca himself doesn’t know what Ripli.ca’s going to be used for. That’s what he likes about it, and that’s what makes ripple in general exciting. We have ideas on where we think it will go, but I suspect those ideas are only shadows of a bright and different future for the ripple protocol.

Photo credit: Ba1969

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5 comments

  1. Patrick

    Bitcoin lost the “first mover” advantage because of the reasons described here Fred. I’ve noticed in the BTC community a complete disregard for logic from the standpoint of legitimate competition. They continue to insist that we need mining. They continue to insist that we need 10 minute block confirmations. They continue to insist that Bitcoin is the “one and only” possible solution to the problem of fiat currency debasement. They continue to insist that the world choose Bitcoin, and only Bitcoin.

    But the world does not just stop using dollars, yuan, rupees and euros overnight so that they can join the “Revolution against central banks”.

    Do people want cryptocurrencies because they are anti-government? Or do they want cryptocurrencies because they reduce transaction costs dramatically?

    I think most people want to save money, not destroy the government.

    • Ozlanthos

      I’ll answer some of your concerns only because both you and the author of this article seem to be completely oblivious of them. Bitcoin fanbois such as myself aren’t “anarchists” or libertarians, we are against market manipulation. How do you get rid of it, when the banks issuing the world’s currencies are RESPONSIBLE FOR THE VAST MAJORITY OF THE MARKET MANIPULATION? the answer of course is to transact in monetary systems and other means of exchange that the banisters ARE NOT INVOLVED IN REGULATING!!! I mean really, how much of the value of your paycheck do you have to lose to “quantitative easing” and other gimmicky names for devaluation via market dilution before you understand that? As for being anti-government. Why would you be “for” a governing body that has been complicit (and made decisions that SPECIFICALLY ENCOURAGED) in robbing you? I don’t know about you, but I don’t work all day long just so the federal government keep paying the guy holding a gun at my hea while I’m being robbed.

      -Oz.

      • Fred Marion
        Fred Marion
        Author

        Bitcoin’s lack of inflation is the primary reason I got involved with it, so I agree with you there. I’m buying it because I know inflation is bad and getting worse. However, I want it integrated with the modern financial system so that it’s easier to use, more widely accepted and easier to deal with when it comes to tax time.

  2. Ozlanthos

    I don’t get why anyone is in such a hurry to allow federal regulators into the cryptosphere. Why not just keep getting @$$-raped by the federal reserve? The fact is that 99% of the reason to migrate to Cryptos is the lack of market-manipulation/over-regulation/over-taxation in the cryptospace. Why flee the fed if your only other thought is to allow them to regulate an alternative monetary system that really has no need or desire for federal intervention? How about just let Bitcoin and other Cryptos mature on their own? To me it’s like talking about gun control in the age of 3-D printing. It’s the equivalent of blather you hear from people who have no idea what the technology actually allows us to live free of. The age of the central bank is ending, the least you can do is cheer it’s demise!!!!!

    -Oz

    • Fred Marion
      Fred Marion
      Author

      I agree with a lot of what you’re saying. Central banks are inflating away our savings. ShadowStats pegs current inflation around 9% if you use 1980′s calculation process. I guess my point is that the government won’t let bitcoin get large without having some measure of control. If central banks want to get involved in crypto there’s no way we can stop them. They have lots of ways to do that:

      - set a mandatory conversion rate like they used to do with gold
      - start prosecuting anyone who holds bitcoin
      - make banks report transactions from fiat to crypto exchanges
      - raise the tax rates on crypto transactions

      I think we have a better chance of shutting down the Federal Reserve by electing Ron Paul. I’m just a skeptic when it comes to the government ceding control of anything. They’re in the business of controlling everything and bitcoin is actually easier to track than paper fiat.

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