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The Ripple platform officially entered the metals market at the start of the year. It has launched a gateway known as eMetals that allows users to exchange physical metals.
Price XRP (XRP) today – XRP / USD
Traders on the platform can exchange and invest in digital resources of silver (XAG), gold (XAU), platinum (XPT), rhodium (XRH) and palladium (XPD).
How does it work
The blockchain of Ripple technology allows this transformation using crucial properties of speed, accessibility, security, reliability and transparency. Ripple collaborated with BPG Group for eMetals. This company reports how the system works, saying
"Combining the performance of the London clearing system, managed by London Precious Metal Clearing Limited, with the transparency of an asset listed on the stock exchange".
This company is well known for its metal refining operations. However, he is also involved in recycling, management and trade.
Will Ripple surpass the gold next year?
With the platform, many people are speculating that cryptocurrency may outperform the gold market.
JC Collins, a metric philosopher, argues that XRP will bring cryptocurrencies next year in this regard. Collins explains that the rise of digital currencies has opened a new asset class that will also include stocks and bonds in the future. They will be exchanged through the blockchain and global liquidity.
The relationship between Ripple and gold
Gold is currently the most popular metal in the metals market. When invested, it diversifies risks when it comes to these financial holdings.
Gold is a safe haven popular for periods when there are economic events that, after the investors, have negatively such an inflation. This is because it has relatively low volatility. Furthermore, the value of gold remained stagnant compared to many other assets on the market.
Being a safe haven, gold is often compared to BTC, the most quoted digital currency today. However, analysts believe that one day the bitcoin will take the place of gold when its price will stabilize.
XRPhodor does not agree with this statement and says that XRP has a better chance of Bitcoin. This is due to the increasing liquidity of XRP. He also believes that the daily volume of Ripple is similar to that of BTC by May 2017. This happened when the cryptocurrency averaged one billion dollars in a day.
This implies that growth was almost the same percentage as the Bitcoin peak last year in December. Ripple is now big enough to move larger values across the network without generating volatility.
Considering the cryptocurrency track record, XRP carries out all that it intends to do. He was able to get this done in a relatively short time. This can be attributed to the fact that Ripple is a private company and does not have to follow any stringent processes.
Make the right partnerships
Many analysts have praised Ripple for making all the right partnerships. CryptoMaps CEO Craig Cole says that Ripple could be the catalyst that makes cryptocurrencies mainstream. The company is helping financial institutions to reduce costs due to the speed of transactions and ridiculously low fares.
Other cynical experts believe that BTC will never exceed gold. This is because it has no other uses besides being a virtual currency. The gold, on the other hand, can be commonly used for medicine and jewelry.
Perhaps Ripple will change their views including the latest development with BPG Group. A greater number of investors will benefit from the use of the eMetals platform for gold trading due to its transparency.
