Ripple (XRP-USD) was a controversial cryptocurrency – some would not even call it that – since its inception. While it has been listed together with Bitcoin and Ethereum from the time these things have been tracked, it differs greatly from its listing peers. However, the 2018 market did to Ripple's XRP currency what it did to all the other coins.
The question we want to ask is whether Ripple will make a case alone – from an investment point of view – that separates it from the other coins and allows its price to function as a representation of its technology , not for the market in general.
Ripple is a distributed network which means that instantaneous peer-to-peer transactions occurring through the network are certified by multiple and varied "nodes". This helps the network to say resilient to risk.
Ripple is widely known for its digital payment protocol and its cryptocurrency, XRP-USD. Cryptocurrency works on an open source and peer-to-peer decentralized platform that allows for uninterrupted currency transfer in any form. Let's describe it in detail.
· " XRP " describes the currency (investors can hold XRP directly.
· " RTXP " describes the protocol or underlying technology
· " Ripple network "describes the network that runs the protocol.
·" Ripple "describes the company behind the technology.
Ripple uses a medium known as" Gateway "which acts from link in the chain of trust between two parties wishing to make a transaction Gateway acts as a credit intermediary that receives and sends currencies to public addresses on the Ripple network Users can register and open a gateway that authorizes the registrant to act as an intermediary for the exchange of currencies, maintain liquidity and transfer payments on the network.
Ripple, which holds about 60 billion of the 100 billion XRP tokens ever created, announced at the start of this year would have inve I hold $ 25 million of that digital currency in the investment fund early on. The company's goal is to finance "smart" entrepreneurs who can find additional uses for Ripple's blockchain technology, a company representative said during the announcement.
If the company's plans are resolved, Ripple will certainly reinvent the ways in which we transfer money and receive payments. In short, it will change the way we conduct banking and conduct business all over the world. Although, in some ways, the plans are not resolved, Ripple has already done some of this. There is a legitimate and institutional interest in this technology.
The Investment Case
1. Currency currency (XRP) is now trading at $ 0.25 – down 90% from its peak. Starting from this article according to CoinMarketCap.com, its market capitalization is just over $ 10 billion. He sees clear over $ 150 million in daily trading volume, mainly from BTC and Korean Won and Japanese Yen trading.
For investors looking for a smart investment of less than $ 1, Ripple could be a good competitor. The currency acts as a bridging currency to other currencies, making it easy for any currency (fiat / cryptocurrency) to be exchanged for another currency. Each currency of the ecosystem has its own gateway, e.g. CADBluzelle, BTCbitstamp and USDsnapswap.
In addition, the largest market from USD to XRP is only seeing around $ 7 million in volume, where a potential list of Coinbase could increase this 5-10x. And the big exchanges like Bittrex introduced the XRP pairings to the lists.
2. The banking sector is planning to integrate it into their system . Studies indicate that 50 of the world's largest banks have or are planning to integrate XRP in the near future. Ripple wants to have a total of two hundred banks – positioning itself well (and undeniably) in the global banking ecosystem.
3. Faster transaction speed. Speed combined with reliability is making XRP a reliable cryptocurrency. Consider that the current value transferred by SWIFT is about $ 5 trillion per day. The Ripple Consensus Ledger can process 1,500 transactions per second and settle an international payment in an average time of three seconds. In fact, Weiss Ratings has just announced that Ripple has the highest transaction speeds between any competing crypto or blockchain.
This did not go unnoticed. The future will include, very similar to today's Wall Street investors, speed races. To this end, Ripple has announced partnerships with US giants MoneyGram and Western Union as well as American Express and Santander.
The Bottom Line
Crypto "currencies" have a high order to disrupt financial systems. This was reflected in the market of 2018: in which the 2017 investors were on board for the speculative round of what would mean for a team of 18 people to stop the international systems, 2018 saw the reality enter. It will not happen soon; and certainly not without some jokes.
And while most doubt that cryptocurrencies will ever become a mainstream medium, the underlying technology, blockchain, will likely have a significant impact in sectors ranging from finance to logistics, manufacturing, healthcare and utility. So will Ripple be the first domino? The "blockchain" solution in finance that many have requested?
Well, what we have heard is that Ripple's technology will bring a substantial and measurable increase in the speed of money and the number of transactions. Furthermore, the technology reduces the cost to almost zero. If it's true, there's room for it. And the XRP token? Well, I think there may be faults with the way the token is used; but certainly an increase will follow in the adoption of Ripple. In the short term, I am confident in that association. Long term? Well, as long as there is another way to invest in Ripple technology in addition to buying XRP, it's the way to go. And at 90% of its maximum price, it could just be the theft of the year right now.
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Disclosure: I do not have any positions in any of the above titles, but I can start a long position in XRP-USD compared to the next 72 hours.
Communication of Business Relations: This article was written with the help of an independent researcher, who is in no way connected to Ripple.