"You know your friend got the birthday card when she calls you", said Mr Garlinghouse.
Bitcoin's relatively high transaction fees are, however, profitable for so-called bitcoin "miners", who work out complex cryptographic puzzles to add transactions to the blockchain - a decentralized record of all bitcoin transactions. It is one of the most promising currencies for 2018.
TNABC, which is scheduled for January 18-19 and is to be hosted in downtown Miami, is no longer accepting payments in Bitcoin for selling last minute tickets for the event, which are priced at $1000, citing "network congestion and manual processing" issues. It was launched in March 2016 with the direct partnership of Ripple Lab. Or, is the real value behind cryptocurrencies the blockchain technology that could have vastly diverse uses beyond currency and transaction application.
After a crackdown on cryptocurrencies in China, market investors turned to South Korea and Japan, now two vital sources of global demand for Bitcoin and other virtual currencies. We spoke yesterday about the segment on "Fast Money" that used the trade site Poloniex to buy one massive amount of Ripple at one time, live on television.
"The problem is a lot of them have a lot of money", Hoskinson said.
Another important aspect to consider for anyone considering this kind of investment is the use of social trading for crypto currencies.
Banks hold capital and collateral against settlement risks, so a reduction in settlement time would translate to huge savings in the trillions, said Mr Garlinghouse. Industry analysts anticipate that Ripple will ultimately displace Bitcoin, particularly if Bitcoin's price undergoes a correction. Litecoin's algorithm also makes it hard to build Application-Specific Integrated Circuits (ASIC), the likes of which are used to mine Bitcoin, and have been criticised for the massive electricity consumption that goes into mining the cryptocurrency, leading to long-term scalability problems. It has since backed off to trade up 2.5% at $1,177, according to CoinDesk.
Ripple is effectively an inter-bank payment method. The Ripple price then started an upward climb that would almost reach $3.85 before this week's woes. In fact, digital asset exchange company Coinbase now has more users than brokerage firm Charles Schwab (NYSE:SCHW). The government of India has raised concern over the trading of digital currencies in India saying they don't consider them as legal tender but have not passed notification for Ban.