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One thing is certain; Ripple seems to have a plan to become one of the main cryptocurrencies of the future. Connecting with all banks is only a means to an end. Here's how it's likely to go down.
"Anyone who is the first to dominate the most important segment of a market with viral potential will be the last engine of the entire industry," says Peter Thiel, an American entrepreneur and venture capitalist who co-founded PayPal. Thiel's wise statement comes from his book Zero to One, published in September 2014 and written by Thiel and a Blake Masters student.
This particular quote is followed by an explanation of how PayPal managed to get big. The company did not want to acquire casual users. Instead, they targeted those who would be most valuable to them – those who would begin to depend on it. Their first goal was to focus on the emigrants who left their countries of origin to work abroad and send money home.
The parallels with what @Ripple it's doing amazing.# 0to1 @peterthiel pic.twitter.com/L4khLJFS5M
– ___x R_p___ (@ distributed 23) 18 August 2019
Before PayPal, they depended on Western Union to do so. PayPal made it simple, but the transactions were too rare, as Thiel explains. The company decided to take a different approach, which is why it started to contact eBay's "PowerSellers", professional sellers who sold and bought goods on the eBay auction market. In a short time, transactions have increased and PayPal has become the payment platform for eBay.
How do XRP and Ripple fit together?
What comes with this with Ripple and XRP? By carefully observing what Ripple had done with the banks, it is clear that the company is practically making the same move when it comes to bringing cryptocurrencies to the banks.
Like Thiel's advice not to try to acquire casual users, Ripple opted for a smaller niche market segment. Bitcoin, for example, does not have a target audience, apart from people in general. His use cases and his brand have made him great, but for anyone else to get away from the shadow of Bitcoin, they must become the main solution in a specific niche market segment, like PayPal did with eBay .
In this case, Ripple is PayPal and traditional banks are eBay. The longer we observe the methods of the two companies, the more parallelisms emerge, which leads to an important conclusion: that Ripple aims at a much broader picture than most other cryptocurrencies.
Most other currencies only want to be available to all and all at the same time, which is too broad, too general. Ripple and XRP are targeting the banks and their huge consolidated user base, which is not ready to switch to widespread cryptocurrencies.
With XRP in place, they could simply go to the bank and use a better way to send money internationally, without really understanding the underlying technology. This is what will probably make Ripple (XRP) great, although the cryptocurrency community has many other currencies that could do the same thing in a more decentralized way.
This, in turn, leads to another conclusion, which is that XRP could become for cryptographic space what PayPal has become for the traditional financial sector. In other words, Ripple (XRP) will see a significant increase in use and value at some point, which could be a useful suggestion for long-term investors and HODLers.
disavowal: The information presented is subject to market conditions and may include the personal opinion of the author. Please do your "very personal" market research before making any cryptocurrency investments. Neither the writer nor the publication (TronWeekly.com) accepts any responsibility for financial losses.
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