Will Ripple Live Up to the Billing as the Next Leading Cryptocurrency?
The rise of Bitcoin made some early investors very rich. Anyone who purchased Bitcoin before 2015 for few Dollars has a success story to tell. Currently the value of Bitcoin is approximately $6,380, however, they had to wait for quite some time before reaping the rewards. And the fact that the value of Bitcoin continues to rise, investors are still making more and more each day.
We have seen how Bitcoin has drastically changed the lives of many traders and investors, Analysts are now looking for the next big thing in the cryptocurrency sector…could it be Ripple?
The strength of Ripple
Recently, Ripple has gained a lot of attention and partnerships. Some Ripple proponents are predicting XRP could be the next Bitcoin. I know, its sounds crazy and its value will not rise overnight, but can we expect to see a significant increase by 2019? lets take a look.
Ripple has performed well in the previous year. At one point in time it had dethroned Ethereum from its position as the altcoin with the largest market cap despite the fact that many in the cryptocurrency community consider it useless. While Ethereum has gained back its, Ripple has shownsustained growth and plans on launching new products soon.
Ripple was launched in 2012, approximately three years after Bitcoin. An U.S based company called Ripple Labs built Ripple. Its primary concern was to come up with a payment system to be used by banks to facilitate the transfer of funds both internationally and domestically. Currently, many financial institutions prefer Ripple due to its payment processing. The Ripple XRP token is being ranked third in the coinmarketcap.
The primary difference between Ripple and other popular cryptocurrencies such as Bitcoin and Ethereum is that Ripple is centralized with most of its coins being held by the company and founders. Bitcoin and Ethereum systems are backed by global miners who process and verify transactions making them much more aligned with the decentralization and trustless nature that has drawn many to the cryptocurrency movement.
Ripple transaction modes are controlled by specific financial institutions such as RBC, UBS, and Westpac among others. The fact that Ripple has a great control over their system worries many buyers and sellers. Most investors opt for a decentralized platform such as Bitcoin. You can use some of the major free bitcoin telegram signals to understand how crypto prices rise and fall.
Working together with regulators
According to Brad Garlinghouse, Ripple CEO, for any kind of industry to grow and move forward, it has to work together with regulators. During an interview with CNBC’ Fast Money, Brad said the entire industry should realize the importance of working with the system. Exactly how the Blockchain revolutions happen within the system and never outside the system.
There are numerous ways on how the Ripple Blockchain platforms work better than Bitcoin and what has caused Ripple to gain popularity.
Ripples transaction fees and speed
When comparing Ripple and Bitcoin transaction times, Ripple comes out faster by miles. XRP takes seconds for the transaction to be processed and confirmed while BTC may take minutes.
Regarding Ripples transaction fees, Ripple is nearly free. The standard transaction fee for a standard transfer is 0.00001XRP. For instance, in January, when Ripple was selling at $3.29, the transaction fee for such a case would have been $0.0000329. In reality, this means that it would only cost you $1 to send over 30,000 transactions.
Ripple is attempting to position itself as the service of choice for banks looking to make cross-border transactions. With such an ambitious goal, it’s no wonder speculators have made XRP one of the highest trading volume cryptocurrencies on the market, especially with the xRapid launch just around the corner.
When it comes to scalability, the Ripple system works better than Bitcoin. As mentioned earlier, Ripple transaction speed is very high. For instance, it takes Bitcoin approximately one second to handle seven transactions while Ripple an handle over 1,500.
This fact makes Ripple ideal for a big and multi-trillion inter-bank industries. With the Ripple system, banks will be able to send money to international banks easily and faster. Currently, it is very slow and costly to send money internationally. For instance, most banks use a Belgium based third-party organization known as SWIFT to transfer money. This means that someone can’t send money on emergency cases.
With Ripple in the finance sector, financial institutions can use XRP to facilitate money transfer and act as a bridge of liquidity. This ways, banks, and individual investors will save lots of money and time. So, we can expect more in the near future.
The Price of Ripple
The prices for Ripple XRP tokens are considerably lower compared to other high marketcap altcoins, which could make it more attractive to new institutional and retail investors entering the market. This explains why Ripple has attracted so much attention to cryptocurrency speculators. Currently, the value of Ripple’s XRP has improved by more than 7000% from its ICO price.
In fact, over 100 banks have already adopted the Ripple token. Some of these financial institutions include Santander, Credit Agricole, and the Bank of America. With Ripple already making these partnerships with major banks all over the world, we expect to see more in the future.
According to Craig Cole of crypto maps, an expert in the cryptocurrency industry, Ripple could be the catalyst that would make the cryptocurrency sector more mainstream. Ripple is just but a new cryptocurrency on the rise today, but one that promises a lot in the future.
Below is a chart illustrating the current Ripple’s token XRP market cap, price, and daily trading volume.
In summary, there is no doubt that Ripple has a potential to replace the current systems used by banks, but can it survive long enough to do so? Ripple will definitely be a project to keep you eyes on in the years to come.
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