XRP’s recent explosion could signal a huge threat to its superior counterparts, Bitcoin and Ethereum! Why?
XRP has risen 140% in the last 7 days, momentarily becoming the second most valuable Cryptocurrency. One could put this down to luck, however Ripple doesn’t do luck.
The perfect storm of xRapid, PNC partnership, and favourable market conditions ensured that Ripple caused a FOMO tsunami!
Whilst infrastructure projects got the hype, Ripple lurked in the bushes like a wild ferocious animal, waiting for the right time to attack. And boy, did it bite!
Why people ignored Ripple?
Ripple is arguably one of the most contentious Cryptocurrency projects. Unlike Bitcoin, transactions are verified by a centralised “trusted” group in order to give it the speed, low-cost and efficiency required for banks to send money quickly.
Distinct from Bitcoin, Ripple’s founders are not looking to replace banks or governments. Instead, their value proposition seeks to serve them.
Additionally it has a total supply of 100 billion XRP, 61% of which is owned by Ripple and it’s founding team having in excess of 10 billion XRP. Philosophically, much of the space disagrees with it’s lack of decentralisation and openness, and it’s token metrics are far from favourable.
Why people may wake up to Ripple?
Ripple is a serious business and it’s XRP token has real utility. 100+ worldwide banks send billions of fiat quickly, internationally and at >1/1000th of a dollar per transaction. XRP is a cross-border currency, it can be freely exchanged for any fiat currency, meaning a UK branch can send GBP via XRP, and it can be received by a US branch and converted into USD, thus bypassing exchange fees.
Their partnerships include Accenture, American Express, Deloitte, Santander, Western Union, MoneyGram, PNC and many national banks.
Within the month, xRapid will launch to provide on-demand liquidity for financial institutions. It has already been tested by Western Union and MoneyGram. Moving forward, Ripple is planning to merge it’s xCurrent protocol, xRapid and xVia (easy to use payment interface) to provide the ultimate transaction service for the centralised system.
Why it is a threat?
While the centralised system exists, they will use a system that caters for them rather than one that seeks to replace them. As a result, Bitcoin and other alt coins are unlikely to be a preferred payment system.
While mass adoption is needed for the Cryptocurrency system to evolve and outpace the centralised system, it will take some years to catch on. Centralised institutions are unlikely to go without a fight, and until they do, they will continue to use Ripple’s solutions.
This could lead to Ethereum being permanently overthrown by Ripple, and then it’ll be “Watch out Bitcoin”.
Do you like Ripple? And what do you think of it’s future?