In this article, The New York Times states that there is still a lot of confusion about the difference between the company Ripple and the token XRP. They want to underline the fact that there is still too much confusion about it, and that banks are not going to use XRP, but only the technology the company created to transfer their money.
The newspaper reports the words of Ari Paul, a co-founder of the hedge fund BlockTower Capital. “I’m not aware of banks using or planning to use the XRP token at the scale of tens of billions of dollars necessary to support XRP’s valuation,”. But despite all this, the worth of the token XRP keep growing, not exempt from physiological falls; why?
According to the New York Times, this growth is pushed by smaller investor who don’t understand the difference between Ripple technology and its Cryptocurrency. “But banks do not need to use Ripple tokens for Ripple’s software to transfer dollars, euros and yen. That point appears to be lost on many small time investors who are buying Ripple tokens.”
The newspaper may have not considered the fact that this digital currency can be useful and convenient not only for banks, but also for ordinary citiziens and for their daily payments. This growth can be caused by greater awareness among small investors about the strenghts of this cryptocurrency, but also by the many news regarding agreements with various banks and financial institutes.
Ryan Selkis, a virtual currency analyst, recently posted this: “An impossibly long list of things already needs to go right for XRP to become a reserve currency for banks, but that doesn’t mean Ripple’s price won’t keep ascending. Because this is crypto, and everyone in the industry is now slinging crack crypto cocaine to retail addicts.”