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November 24, 2018 at 21:35
| updated:
24 November 2018 at 21: 35 & nbspUTC
If you read our article on A Beginners Guide To Ripple, you already know that it is an open source payment protocol designed to meet the needs of traditional financial institutions. Ripple allows you to conduct global transactions instantly with almost irrelevant commissions. Ripple is believed by many experts to the currency in which to invest, as it has more or less maintained its stability and at the time of printing has exceeded Ethereum as the second largest cryptocurrency by market capitalization, improved only by Bitcoin.
You can also read: 10 things to know about Ripple
Here are some pros and cons of Ripple (XRP).
Professionals:
1. Ripple has collaborations with important institutions:
A good measure of how much confidence in investing in a currency is if large companies that accurately follow the market are investing in it. This is a criterion that Ripple gets very well. Many financial institutions and major banks have partnered with Ripple, and will soon follow the example. These partnerships are indicative of the fact that Ripple is here and that there are significant chances that the value of the currency will skyrocket once the appropriate conditions are met.
2. No inflation as the currencies already exist.
Because XRP is not extracted, and every single unit of currency possible already exists and is owned by Ripple or held by corporations and individuals, it almost cancels the probability of inflation. It leads to Ripple's sustainability as it does not have to rely on computing equipment like GPUs and ASICs or electricity for creating new coins.
3. The transaction speed is faster than Bitcoin:
Ripple can handle 2000 transactions per second, on average compared to BitCoin, which can process up to seven transactions per second. Ripple has the ability to be much more scalable than Bitcoins.
4.Decent scalability and low prices:
The currency, despite all the controversy and criticism, has proved to be quite stable and reliable, something that institutional investors must trust in cryptocurrencies. Moreover, the currency is quite cheap and investors can get more coins with less than one dollar. It is certainly one of the best cryptocurrencies on which to invest, in 2018
You can also read: Pros and cons of Stellar
Versus:
1. Majority control by the parent company:
Ripple, the company, has control over over 60% of XRP, and then controls the blockchain as it has the magic advantage of 51%. Even the probability of a massive sell-off is minimal.
2. Use is limited to xRapid:
Although Ripple is now working with a ton of high-profile institutions, many of those banks currently do not use XRP. The token is used only on the xRapid solution to provide on-demand liquidity. Because many other cryptocurrencies are also trying to achieve the same goal and are taking giant steps to do so, they could derail Ripple's impressive progress so far, unless they are soon adopted by the banks.
3. Regulatory gray area:
Ripple has been the victim of numerous controversies and lawsuits under which Ripple Labs controls the currency and that XRP is centralized. Although the company continues to deny these claims, this, together with the fear that XRP can be declared as a US SEC bond, could hold back potential investors and partners, thus hindering its growth.
That said, Ripple (XRP) continues to be a good cryptocurrency to invest, which has even managed to maintain more or less its stability in the recent bear market. However, before investing in Ripple, make sure you know the best Ripple Crypto wallets for 2018, to ensure a secure deposit for your investments.
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Rishma Banerjee
Rishma is currently pursuing a degree in International Relations and has a special place in her life to sift through all sorts of random curios, thank you very much.
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