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The Ripple (XRP) platform officially entered the metals market at the start of this year, when it launched a gateway called eMetals that allows the trading of physical metals. In it, traders can invest and exchange digital goods in gold (XAU), silver (XAG), platinum (XPT), palladium (XPD) and rhodium (XRH).
Ripple's blockchain technology enables this transformation through its crucial properties of accessibility, speed, security, transparency and trust. The BPG Group, with whom Ripple collaborated for eMetals, also states that the system acts in this way "by combining the performance of the London clearing system, managed by London Precious Metal Clearing Limited, with the transparency of an asset traded on the stock exchange" . The BPG Group is mainly known for its metal refining operations, but is also involved in fund management, recycling and trading.
With this platform, there is a lot of speculation about whether Ripple will end up surpassing the gold market. The writer Philosophy of Metrics JC Collins, for his part, argues that Ripple will bring the cryptocurrencies in this direction by 2019. Explain that the rise of cryptocurrencies has opened a new asset class that, in the future, will also include stocks and bonds traded through the blockchain and global liquidity. To make sense of this better, we need to discuss the meaning of gold and Ripple and their relationship.
Gold, after all, is the most popular commodity in the metals market. As an investment, it is used to diversify risk when it comes to financial holdings. FXCM explains that gold is a safe haven popular in periods of inflation and any other economic event that has a negative impact, largely due to its low volatility. Overall, its value remained relatively stagnant compared to other activities on the market.
As a safe haven, gold is often compared to Bitcoin (BTC), the highest cryptocurrency today. Analysts believe that one day Bitcoin will replace gold, but only when its price will stabilize. However, XRPhodor claims that Ripple could do better than Bitcoin because of its growing liquidity. According to him, the daily volume of Ripple is similar to that of Bitcoin in May 2017, when in trading it averaged about one billion dollars a day. This means that its growth was roughly the same percentage as the Bitcoin peak in December last year. He later noted that Ripple now has a volume large enough to move large values across the network without causing any volatility.
Looking at his track record, Ripple mainly achieves what he aims to do. The currency has so far been able to reach its goals in a short space of time. It probably helps to be a private company, which means that they do not have to handle things from a committee.
Many experts recommend paying attention to Ripple because it is doing the right partnerships. Craig Cole of CryptoMaps said that Ripple, instead of Bitcoin, could be the catalyst in making mainstream cryptocurrencies. At the moment, it is helping financial institutions to save on costs due to higher transaction speeds and lower rates.
Cynical experts believe that Bitcoin will never take control of gold as a safe haven, because it has no other uses besides being a digital currency. In contrast, gold can be used for things like medicine and jewelry. But perhaps Ripple will change their views, considering its many partnerships and uses of the real world, including this latest development with the BPG Group. Investors will benefit from the use of eMetals to exchange gold, thanks to the additional security and transparency features offered by its technology.
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