Ripple had an increase in value by an inconceivable rate of 35000% back in 2017. This led it to be the most talked-about topic that particular year as o other currencies in the world have shown a rise in value at this unimaginable rate. Is Ripple similar to other cryptocurrencies? We will discuss this and what is Ripple? Apart from this, we will also analyze the erratic behavior of this currency.
What is Ripple?
Ripple is the payment solution founded by Chris Larsen and Jed McCaleb.The Ripple Transaction Protocol holds the currency XRP. Ripple prides itself to be amongst the swift, steadfast and affordable transaction solutions for financial institutions. It has manufactured billions of coins every other month and currently controls almost 61% of it. The majority of stakeholders of the Ripple coin are the banks with more than 70% of the reserves owned by them which gives them the eligibility to control the price of the coin as they wish to do so. The rest of the 30% is held by common investors.
Ripple vs Bitcoin
Even though both of them are cryptocurrencies that are produced using the infamous “block-chain method”, the elemental difference between both of them is the fact that Ripple cannot be mined unlike Bitcoin and its usage is fixed amongst the Ripple network only. Ripple has the fastest settlement time and can manage 1000 fully settled transactions per second, which is more than any other crypto coin. Therefore, there is a high chance of it to increase in price as it hopes to merge with several multinationals as we will discuss further here.
Why has the value of Ripple increased so rapidly?
- Recently, Bitcoin attempts to cross the $10k mark and therefore has announced bitcoin futures trading on different platforms such as CME. The media attention, this has received as a result has drawn in hordes of newcomers to this arena.
- Coinbase is the most popular brokerage used by many interested in investing in cryptocurrencies for the first time with three options only-Bitcoin, Ethereum, and Litecoin. Litecoin has suffered a natural resistance and this has opened up to other alternative cryptocurrencies such as TRON, Cardano, Bitcoin Cash among others bringing the overall cryptocurrencies into play with a cryptocurrency market cap to a record high of $611 billion.
- As a group of finance, technology, and Fintech experts. Ripple has shown that an effective manner for new tech startups to thrive is to increase its partnerships and customer acquisitions. It has more than 70 economic deploying consumers. Ripple already has a very good partnership with some of the well-known multinational firms such as American Express that has created a lot of buzz in the technology business arena. This has provided Ripple with credentials that made it look more authentic rather than just a fancy new technology good for nothing.
It is working on gearing up more media attention with more and more coverages lining up every month for both newspapers and tabloids.
- The continent of Asia plays a very important role in this case. It has been found out that Asians are very fond of Ripple. The biggest evidence to this claim is the partnership of SBI holdings to launch the SBI Ripple Asia for the markets in Southeast Asia such as China, Japan, Korea, Taiwan by setting up a sales and engineering team that will work to sell and install solutions for cross border bank payments.
Many of the leading experts have pointed out that Asians, in particular, are so interested in Ripple and its technology that they have analyzed the opportunities between business and the blockchain thus turning out to be a profitable venture for Ripple as a whole.
- Coins are bought and sold based on pure speculations. This is also why many new altcoins cannot make it to the cryptocurrency market even before they are fully operational. The currencies are backed by ideas and public belief which can turn out to be very alarming.
Ripple has made itself useful to its consumers (some of the biggest financial institutes of the world) regardless of how everything shapes out in the future. As observed by crypto specialists it is confirmed that even after its drawbacks, due to the limited production of XRP coins, the currency may either become strong or stay stale at its current position, but it will never fall in its value.
- The XRP price prediction has indicated a price hike that will affect how does the financial institutions and hype believing investors plan to use the currency.
Ripple/XRP’s current is preferred by financial institutes as it yields real-time communication and quick corrections hence minimizing the time needed to perform bank transactions.
Will this hike sustain?
After examining the reasons for the price hike, the next question that races across the mind is that, whether or not will this price hike last and if so for how long?
The present market study has suggested that the hike may not sustain for too long as XRP has almost reached its resistance barrier. There would be a few jumps in the price value along the way before it fixates at a stable price.
Others tend to argue about whether XRP can hold up against more established crypto such as Bitcoin, even though there are still chances for XRP to prosper. Although the chances are low for financial organizations to deliberately adopt XRP, Ripple will, however, continue to pump it in the market. Henceforth Ripple will see a price hike for a while in the future although not for long.
Finally, whatever may be the case, Ripple has proven itself as one of the most fascinating cryptocurrencies to watch. XRP happens to be the rising cryptocurrency as it is different from other leading digital currency such as Bitcoin as its supply is controlled by the company itself. This proves the fact that this cryptocurrency is here to stay and will not leave the market anytime soon.
Image Source: Pixabay
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