Ripple and XRP have been the focus of attention for a while. In particular, many news agencies, including Bitcoin Exchange Guide were helping investors understand the usefulness of XRP. A new post shared by Hacker Noon has a different approach, namely, stating possible reasons why it is necessary to completely reconsider Ripple and XRP. Five reasons have been shared, and here is a brief breakdown of what has been noted:
1. The XRP is not a ripple and Vice Versa
The argument here is that Ripple and XRP should not be perceived as one, but instead as two because of their greater differences and purposes. Ripple is a centralized company that plans to become the next payment solution. The company houses three products, namely xCurrent, xRapid and xVia.
xCurrent is a product suitable for banks, as it allows them to complete cross-border transactions. While relying on RippleNet, it has nothing to do with the XRP token, which means that more banks use products. The value of the XRP token remains unchanged.
xRapid, as xCurrent is a product suitable for banks that focuses not only on improving liquidity, but also makes use of XRP. This is also a product that the bank prefers for its ability to move money.
Finally, xVia will work the same way as xCurrent but it will also include companies instead of simply focusing on banks.
Ripple then obtained the support of several banks, including Royal Bank of Canada (RBC), Standard Chartered, SEB, Westpac, Santander, UBS, Bank of Montreal (BMO), CIBC and SBI Remit – a list of examples of over 100 banks.
All this being said, it is clear that neither products use XRP nor do they make almost 99% of the banks, the main reason why the symbolic price of XRP has not seen growth. Another point that has been made here is that "banks using xCurrent and then selling them crossed in xRapid" could potentially affect XRP prices, but will it happen? The answer remains a secret!
2. "XRP is not the currency of the future"
Hacker Noon does not see the potential in XRP because of Ripple's focus on banks. While this could be useful for Ripple as a company, it is not for XRP as a token because banks are more to move money, while the symbolic value of XRP will only increase if investors hold the tokens.
According to the report, Ripple's goal will eventually replace SWIFT, which is responsible for "transferring money between banks internationally." The SWIFT system has presumably earned a profit of almost $ 31 million, which is not comparable to trillions and more worldwide.
So, why is XRP not the "currency of the future"? The case here is that, by focusing on the SWIFT market, the opportunities for XRP will diminish.
3. Is XRP really a disruptive technology? It seems it is not!
When we listen to blockchain technology, we automatically think "disruptive" or "ability to revolutionize different industries", so we might think that XRP has similar aspects. Hacker Noon has argued that Ripple is not the only one who offers global payment services, since R3 is doing the same thing. They presumably managed to make a milestone without having to create a token on their own.
Also here was the example of SWIFT as it is at the top of the global pay list. With the exposure and support that SWIFT has performed over the past 45 years, it is believed that the same system can implement blockchain technology if necessary.
Harry Newman, SWIFT's Global Head of Banking does not consider blockchain technology as disruptive but instead as an alternative. Newman was quoted saying:
"I see these [blockchain] as constructive technologies that can be examined, adopted and used."
Making it look as if it were easy to implement, SWIFT showed that this is the case as they did their own research. The report revealed that the system completed PoC with 22 banks via Hyperledger Fabric's blockchain.
Stellar [XLM] is another reason why Ripple could take a step back, since the Ripple Founder thought it was necessary to launch Ripple because of existing problems. To this date, Stellar has managed to secure strong partnerships with different payment providers, as opposed to simply looking for banks.
4. XRP: Decentralized Or Not?
Ripple, as we know, is centralized and it is noted that the company holds almost 62% of the XRP token and controls RippleNet. While this is certainly to shake investors, Ripple has promised that it will block 55 billion coins.
Whether they do it or not is questionable, as all that can be done is to trust the team involved. Comparing Ripple with digital currencies almost 18 years ago, the advanced argument is that every "centralized digital currency is too easy to kill with regulation".
5. The uptake by users of XRP does not mean that its value will increase
This topic brings the above points together. That is, the price of the XRP token will increase only since HODL investors. Since Ripple is too busy trying to secure partnership with every bank possible, such price increase is deemed impossible, considering the fact that banks do not want money sitting around. User adoption is questionable because Ripple products alone do not necessarily support XRP!
What do you think of this point of view? Are the five arguments enough to question XRP prices? The token will not see any progress since Ripple continues to follow its roadmap? Let us know in the comments below.