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Have you ever heard of Adam Smith? You read his book "The Wealth of Nations" You Should This is the guy who invented Economics He invented the idea that markets find a way to self-regulate through supply and demand. that Smith never said is that the markets were rational, they are not … Voices, fear, momentary impulse govern them, and this is what happens to the crypto markets right now, especially ; Ripple XRP.
Let's briefly review the recent history of XRP prices
The annual Ripple conference on Swell began last Monday and, over the past two weeks, the price has increased. Nobody knew anything, but this is an example of speculative investors buying rumors, trying to get into action before anyone else does. What happened next?
Well, Swell happened next, and while it was supposed to be a low-key conference, it was a big announcement. That is to say, xRapid is finally in production, with three partners already using it to regulate their international money transfers.
Those were good news. And what happened next? The price of XRP has decreased. We dig a little deeper.
Cryptocurrencies, like any other commodity or resource, can grow in value for two reasons: they can be useful or speculators might be interested in them. This is Economics 101. At this point, very few cryptographic coins are useful in the real world. This means that their value is dictated mainly by speculative pressure.
Ripple is in a transitional period. It is turning into a project (and a token) that is becoming useful in the real world because banks, remittance services and financial institutions are slowly (but surely) adopting both the platform and the currency. But the process is only beginning so the speculative pressure is still very strong and is keeping the value of the token.
So if xRapid is finally in production, why is the price of the token going down?
Because it started only with three users, who are not very large. But if things work well for them, other banks (larger banks) also adopt xRapid (Banco Santander already has another Ripple platform in production), which will create a much larger demand for XRP. Not because of trade but because it is a useful currency that solves problems for real people.
The only thing you need to know about the value of XRP is this: it's not a sprint race; it's a marathon. But Ripple technology and token have proven to be useful for many companies around the world, so they are sure to get more users.
And with more users, there will be a higher volume of trade that will drive the price of money because of utility, and not because of pure speculation. Keep in mind that even Stellar Lumens and LiteCoin have seen Ripple's project and have followed the example, because they know that the adoption of a mainstream cryptocurrency is the only thing that can make it valuable in the market, circumventing the speculative measures.
It is not time to be deceived by what happened last week (XRP is down more than 6% even in the previous 24 hours). Instead, it's a time to think long-term, and there are many good long-term bets in the cryptosphere. Tron, Stellar, Bitcoin (surprise!), Cardano and a few others, but among them, there is Ripple.
Do not worry about the current market. As I said before, it's irrational. Be rational and overcome the market. Not this week. Think only in the long term. Is the market terrible now? No, it's not terrible. It is cheap. It is probably the right time to buy. But do not take the floor. Do your research, reach your conclusions and never include cryptographic money that you can not afford to lose.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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