Skip to content

Ripple in 2018: does it still have potential?

--Advertisements --

Ripple is one of the oldest cryptocurrency networks. Launched in 2012, the ripple piece was once valued at 1000 coins for a dollar. Six years later, the wavy coin is valued at $ 0.65, a growth rate of more than 40,000%.

Despite Ripple's rapid growth rate, however, many cryptocurrency investors still ask this question: Does Ripple Worth Investing?

4 Reasons Why Crypto Investors Can not Decide To Buy Ripple

1. Centralized Management

Ripple is owned by Ripple Labs, a company that owns half of all Ripple parts in distribution. There are 100 billion Ripple coins, all pre-minted in 2012. With the company retaining 50 billion coins, many investors worry that they could control the prices of the coin by selling them regularly. parts that they own.

As a centralized business, the Ripple network also makes many decisions that influence the value of the piece. A recent decision allowed American Express to make payments using the Ripple blockchain but without using Ripple coins. While the company had the power to make such a decision, it discouraged the use of Ripple coins, thus threatening their value in the market.

-- Advertisements --

2. Blockchain closed

While many blockchains are like public records that anyone can access, Ripple's blockchain is the only member platform. Ripple has been developed to connect banks and financial institutions. And in most cases, only financial institutions have access to this blockchain.

However, Ripple supporters argue that access to the Ripple blockchain is not of much importance from the investors' point of view. What matters is that Ripple has a viable use case and that as long as financial institutions find the demand by wave and their services, the value of the coin will continue to increase.

See also  3 Fundamental Techniques of Negotiating the Financial Markets to Learn Before Making Your First Job

3. More inflated prices

Cryptocurrencies, in general, have inflated prices. Speculation influences most coin values. When most coins belong to a fraction of the users, coins are much easier to inflate. More than 90% of Ripple coins are held by a few banks and the Ripple company.

When banks hoard coins, their value increases regardless of whether more financial institutions are involved in the payment network.

4. What investors say about Ripple

While cryptocurrency investors differ with respect to Ripple's potential, the coin and its blockchain network have always skyrocketed. Ripple grew by 36,000% in 2017 alone, and the number of financial institutions establishing partnerships with the networks has increased since 2013.

So, what is Ripple's potential in 2018?

1. More banks join the bandwagon

More than 120 banks released the Ripple payment protocol test in 2018. Sixty-one Japanese banks have already partnered with Ripple in March to create an app that would facilitate fast payments using the Ripple blockchain.

-- Advertisements --

In May 2018, more than 70 banks, including 5 European banks and international giant, Santander bank. An increase in the number of banks using Ripple coins for payments will increase the value of the coin, leading to higher returns for investors.

2. The impeccable payment protocol of Ripple

Many cryptocurrencies have been called scalable only for them to slow down in the face of increased transactions. Ethereum, for example, has always been considered an evolutionary blockchain network until February 2018, when it experienced considerable delays.

Ripple, on the other hand, has never shown signs of delay, regardless of the number of transactions made on the network. An average Ripple transaction takes 8 seconds to complete and billions of Ripple coins are processed daily.

See also  5 Reasons Why Twitter Did not Die (Just Yet)

3. Superiority over competitors

Ripple can be compared to PayPal in several ways. Like PayPal, it is used to make payments quickly and easily. With PayPal, you can perform a transaction in any part of the world instantly. However, PayPal is expensive and has a lot of regulations.

The Ripple payment protocol helps users make payments instantly, unregulated and with extremely low transaction fees. Whereas PayPal charges 2.75% for payments; Ripple fresh cents. Of course, Ripple targets banks, but that gives them even more reason to use it compared to PayPal or any other money remittance provider.

In the world of cryptocurrency, Ripple's main competitor is Stellar, which also has unlimited scalability and virtually zero transaction costs. Stellar is also a decentralized application deployment platform, which turns out to be very useful. However, Stellar is lagging behind Ripple in popularity and partnering with institutions and companies that generate growth rates.

-- Advertisements --

4. Support by exchanges and portfolios

Usually, interest in the registration of a coin on an exchange or on a popular wallet of cryptocurrency can influence the price of a coin. Think of Zcash when the Gemini Exchange announced that he would support it. The value of the coin has increased by more than 50%.

In 2018, a number of high-profile portfolios like Trezor announced that they were going to add Ripple to their portfolios. Ripple is often not supported by many portfolios to have a cryptographically technically difficult currency. However, the decision to support Ripple by Trezor and other popular portfolios will likely help stimulate the growth of cryptocurrency before the end of the year.

Is it time for you to invest in Ripple?

Although Ripple's "one bank per week" partnerships can lead to steady growth, it is still a cryptocurrency. The rooms fluctuate a lot. And as indicated by its irregular growth pattern since the beginning of the year, investing in the room does not guarantee profits. If anything, the ripple has not yet shown signs of hovering above $ 1 after the January crash when the coin value went from over $ 3 to under $ 1 .

See also  How to Create the Perfect Personal Brand for Your Business (INFOGRAPHIC)

Still, the Ripple network has a lot of potential. Judging by the number of ongoing partnerships, trading listing Ripple and the hype, Ripple could exceed $ 1 by the end of the year. Investors who see the potential in the network are winners. For more details on buying Ripple, check out this article.

In conclusion

Ripple is one of the few cryptocurrencies with a real use case. Its blockchain-based payment protocol targets large financial institutions and helps them make payments anywhere in the world in seconds. From the investor's point of view, the wave will continue to grow as more and more banks and financial institutions adopt their protocol. In the end, the most profitable investors will be those who hold their coins the longest.

Advertisements

-- Advertisements --