When we talk about cryptocurrencies, there is no denying the fact that we have always remembered Bitcoin. It still continues to be the market leaders and there are also other names such as Ethereum that have been able to create quite a bit of impression. However, over the past few years, Ripple XRP is being talked about because of some obvious reasons. It has grown quite strongly and the growth story has been impressive to say the least. Today, Ripple XRP has grown to become the third largest cryptocurrency in the world as far as market cap is concerned. It also has graduated and become an independent digital asset. It is native to the Ripple Consensual Ledger. The main function of this is to ensure financial settlement options and it is given to major banks and financial institutions. It also is offered to various liquidity providers spread all over the world. There are reasons to believe that it is one of the few cryptocurrencies in the world that is relatively centralized. It also happens to be directly involved with the traditional banking community. While opinions might be divided, there are many who believe that there are many reasons to go in for Ripple XRP. We are happy to share a few possible reasons as to why investing in XRP could be a wonderful choice in more ways than one. It will help us to better understand the reasons to buy Ripple
It has A Great Relationship With Major Banks
Unlike Bitcoin and many other major cryptocurrencies, the biggest plus point for Ripple perhaps because of its excellent relationship and proximity to conventional banks and financial institutions. It continues to be widely accepted by major banks and financial institutions as a medium of digital payment and receipt. On the other hand, when we talk about other cryptocurrencies like Bitcoin, their main objective is to be highly centralized and stay away from fiat currency as much as possible. The synergy between traditional banks, financial institutions and Ripple is a big and positive takeaway as far as this cryptocurrency is concerned. This is something that no other cryptocurrencies have been able to achieve. More than 100 banks have tied up with Ripple XRP and they include some big names like BBVA, MUFG and much more. Such a positive relationship comes with its own share of benefits. Ripple XRP is relatively free from the uncertainties associated with changing cryptocurrency regulations on and global platform. This win-win partnership between Ripple and Banks certainly makes it more stable from the end users’ perspectives.
The Transaction Protocol
XRP is the Transaction Protocol for Ripple and it is used for a number of purposes. These include receiving and transferred digital currencies and also effecting money transfer and also sharing information and transferring them amongst various platforms. It would not be out of place to mention here that the Transaction Protocol of Ripple is suitable for handling very large transfers. This can happen across nations and cutting across international boundaries. All this can be done without having to burn one’s pocket as far as transaction fees and other expenses are concerned. This compares very favorably with existing fiat-based currency transactions where the cost is quite high and often it become very prohibitive.
Institutional Investment Backing
Funding the growth story is the lifeline for any company and Ripple has done exceedingly well in this areas. It has been able to bring in almost $55 million of Venture Capital funding. The appreciable thing is that this funding happened in a single funding round. It included investment from some big tech giants and names like Apple and Google. They have expressed their confidence in Ripple because they believe it could make a big difference to them as far as money payments and transfers are concerned. There is good news because big investment gains like FF Angel IV, Andreessen Horowitz and even Lightspeed Venture have put in lot of money into Ripple. This proves that the investment community in general has a lot of faith and trust as far as the long term potential of Ripple is concerned.
Potential ROI & Value
The value of Ripple has skyrocketed ever since its ICO or Initial Coin Offering was in the market. However, the price growth has been moving up and down and when one compares it with other cryptocurrencies. But the fact remains that the overall price has constantly moved northwards. As of now, it is being traded at $0.28. This is a good sign when one takes into account the increased rates of investments, adoptions, partnerships and other such things that Ripples has been into. When one takes into account the above factors, there are reasons to believe that it could be a decent investment with the best of ROI over the next few years.
Any cryptocurrencies’ success journey is determined by many factors and technology certainly is one of the most important contributory factors. Ripple has invested heavily in technology and the results are there for all to see. Those who have experienced Ripple XRP will agree that they will be able to get the best of speed and security. The transfer speeds are simply amazing. They continue to remain invested heavily in the technical space and have never believed in resting on their laurels. Ripples has earned the goodwill and reputation of thousands of customers across the world because they offer an average time of around 4 seconds. Hence, for most of the time period you can expect around 1500 transactions per second. This far outstrips even the big names like Bitcoin and Ethereum. Bitcoin can perform around 7 transactions while Ethereum can perform around 15 transactions per second. This is perhaps because of their foresight in investing the best of technology. They use a 3rd generation blockchain consensus algorithm. This compares well with the traditional banking industry across the world. They use the SWIFT system and it takes around 2 to 3 business day for confirming international transaction validity.
Ripple XRP also has tie up with the major cryptocurrency exchanges across the world. This goes a long way in enabling the users to sell, buy and trade Ripple XRP. This helps it to become an extremely accessible digital transacting system to anyone who is interested in using cryptocurrency or even investing in it.
As mentioned above, Ripple remains strongly committed to technology and other things that could help them to stay away from the crowd. This augurs well for the long time growth prospects of this service provider. It also makes the end customers safer because they are protected and would be in a much better position to absorb the external shocks and price volatilities. Further, Ripple continues to have a very large market cap and is also uses high tech consensus ledger for performing transaction. This is another big advantage even when Ripple XPR is compared to Bitcoin. Bitcoin uses proof-of-work algorithm. While it also is good, they become expensive and harder to conduct transactions as the volumes keep going up.
Those who have used Ripple would most certainly know that it is much more than a small cryptocurrency company. It is in fact a full-fledged business and financial hub. It has a big and vibrant public relations team. They focus all their energy and effort to ensure that they are able to cultivate a vibrant image as far as the company is concerned. They are very careful when promoting a positive image about the company to their customers, banks, investors and of course the general public. Those who have followed and known cryptocurrencies of other companies will certainly have a few additional words of praise for Ripple because of their public relations and image building exercises. The good thing is that they do it genuinely and not just to score some brownie points and marketing victories.
Low Transaction Fees
One more reason for the growing popularity of Ripple could be attributed to its low transaction costs. This coupled with very transaction speed and efficiency are indeed very big takeaways. Hence, it is quite obvious that they are strategically placed when it comes to competing well on the price front, technology front and as far as accuracy and speed are concerned. There is no denying the fact that when it comes to the above three attributes, Ripple might be able to take heavyweights like Bitcoin and Ethereum and beat them at their own games.
Centralized- Decentralized Currency
If you ask many cryptocurrency enthusiasts, they were not very favorably inclined when it came to predicting the projected success of Ripple and their prospects from the long term perspective. This was because unlike Bitcoin, Ripple is not a decentralized currency. It would be right to call it as partially decentralized or in other words centralized-decentralized currency. The currencies as many of us know are owned by Ripple Labs. But, over the years, this strategy of being partially decentralized has helped them in many ways. They have been able to keep the value of the currency relatively stable. They are able to achieve success and growth much faster and much more in a stable manner. This along with other such features certainly goes a long way in making Ripple a good investment prospect from the medium and long term perspective.
People Have Made Money
There is no denying the fact that Ripple XRP has suffered quite a bit because of volatility in price over the recent months and years. However, we need to understand that big money is made only in volatile conditions. Further, it also is clear that you cannot have just one cryptocurrency that will rule the roost at all points in time. While Bitcoin could be enjoying a good ride now, the fundamentals of Ripple XRP are indeed very solid and have been so for the past many years or so. Hence, it is quite obvious that they will be able to weather the storm though there are bound to be troughs and ups every now and then. This is where carefully staying invested could make a big difference. Ripple because of its inherent strength will be able to offer the best of returns provided they know how to look at from the medium and long term perspective.
The Bitcoin Is Gaining Traction
The success of any cryptocurrency is judged by the way it is able to attract and gain traction. There is no doubt that XRP is slowly and steadily appearing in a number of exchanges across the world. Though they did start on slow and somber note, they have made up for it quite well over the past few years. As we read this article, it is estimated that they are available in sixty exchanges around the world. The good thing is that they are also being liked and embraced by many financial institutions. Further the company also has claims that it continues to have many pipeline of businesses lined up for them. These business projects are interesting because they are keen on using XRP as their payment methods. It would be pertinent to mention here that Moneygram the famous US money transfer group has made its intentional clear. They are entered into a partnership with Ripple to test their XRP and should this succeed, it will certainly be another feather in the cap of Ripple.
The Final Word
Though these are still early day, there are enough reasons to believe that Ripple is on the right path. They are certainly not following the herd and are all about decentralization. Their biggest strength may lie because of the fact that they will be using a mix of centralization and decentralization. This certainly has set them apart from the crowd. They have placed themselves in a wonderful niche and will be able to cater to those who want decentralization and also the purists who are for some form of control and would like fiat currency to be a part of their daily transactions. Additionally, Ripple also has invested quite heavily in technology and this already is bringing in some much needed changes as far as speed of transactions are concerned. It might take some time for them to catch up with giants like Bitcoin, but Ripple does have something extra and different to offer. This could help them to set a course that could be different from the mainstream players.