Ripple creators have split and developed a new cryptocurrency called Stellar, which is similar to Ripple and expected to be the next big cryptocurrency, trader Brian Kelly has said.
Speaking to CNBC, money manager Mr Kelly said: “Stellar is one that is very similar to Ripple. It is created by one of the creators of Ripple.
“Effectively, the company split and they went out and created Stellar. They are already working with IBM, they are beginning to deal with them to do cross-border payments.
“So IBM has a payment system similar to kind of what Moneygram wants to do.
“It’s faster and cheaper than Bitcoin and what I mean by that is you can move stuff around faster and it’ll cost you less than Bitcoin at this point in time.”
Moneygram announced in January that it will trial Ripple’s XRP digital currency, which Mr Kelly said was a “watershed event” for the industry.
Mr Kelly said Stellar is “very similar” to Ripple and has a deal with IMB but is expected to get “bigger margins”.
He said the partnership with bank IMB is “very important” and Stellar is likely to double the Ripple price and reach over a dollar.
But billionaire business mogul Warren Buffett warned Bitcoin and other cryptocurrencies are “certain” to end badly.
Speaking to CNBC, the CEO of Berkshire Hathaway said: “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”
Mr Buffet said he is unsure when the cryptocurrencies bubble will burst but he is “certain” it will happen.
He said: “I know this. If I could buy long-term puts. If I could buy a five-year put on every one of the cryptocurrencies – I’d be glad to do it. But I would never short a dime’s worth.
Bitcoin's popularity has caused demand to skyrocket throughout 2017, pushing other cryptocurrencies like Ripple and ethereum to also reap the benefits of the cryptocurrency craze.
Bitcoin price increased to $13,556.31 at 09:00am on Sunday, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000.
Bitcoin is a cryptocurrency not controlled by a single administrator and can be used to buy things worldwide electronically.
Donald Trump's Treasury Secretary has revealed that the US Government is keeping a "close eye" on cryptocurrency following the meteoric rise of the currencies.
Steve Mnuchin claimed cryptocurrency had made the Treasury make proposals of converting the US currency into a "digital dollar".
Several governments around the world have already banned initial coin offerings and are looking at strict regulation to bring cryptocurrencies under the control of the global financial system.
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