Ripple, like many other cryptocurrencies, is determined to make its mark in a world dominated by Bitcoin. They have been making great strides recently and have seen the XRP price rise dramatically as it battles with the likes of Ethereum to be the second largest coin.
One Ripple token was worth just $0.006 at the start of December 2016, but now it has seen the value increase by thousands percent as it reaches over the $0.7 mark. It’s been a rapid growth which has made everyone sit up and take notice of them.
While any other digital currency overtaking Bitcoin anytime soon seems like a bit of a long-shot, it’s likely to happen one day, and Ripple will be hoping they are the ones who will eventually become the kings. There are clear signs as to why that could happen and why Ripple has gained a huge amount of trust from their investors.
The technology behind a coin is what can make or break it, and everyone has their different views on the best way for Ripple to be controlled and how the coin should be run. With Ripple, however, a lot of people are enthused about the technology, which is getting a lot of big businesses interested in.
Indeed, Ripple was made with the instant transaction of money from one place in the world to another in mind. The transactions will be done within seconds, which is a big change from the traditional banking system that may take days. Not only that, but Ripple’s charge for these transactions is nominal compared with the current banking charges.
Perhaps the biggest breakthrough for Ripple came in November last year when they partnered with American Express in order to send money instantly to the United Kingdom. This kind of partnership gives instant credibility, which is vital in the current climate where so many people are still unaware of how cryptocurrency works.
People don’t trust what they don’t know, and for such a respected financial institution to back the currency was a huge boost. It has helped bring Ripple into the mainstream and has given it a credibility that it wouldn’t have been able to achieve on its own. That credibility and trust have led to similar deals with both Santander and Swiss UBS.
As with any cryptocurrency, it remains to be seen whether the value will hold due to the fluctuations that can happen, but the signs look good for Ripple. Those partnerships with the trusted financial institutions, however, give it a great chance to build on its current price and improve on it. Whilst not being anywhere near the value of Bitcoin, no digital currency is as of yet, but Ripple is closing the gap.
There is always a critic, however, and some will point to the fact that Ripple’s XRP token can’t be mined and are instead issued by Ripple. There is already around billion of them with the potential of a billion more being made each month. As with the dollar, the danger in releasing any currency is that you increase inflation and devalue your own coin. Ripple has to make sure the XRP tokens are managed well enough to prove this doesn’t happen.
Ripple is making waves on its own terms and works in a different way to the likes of Bitcoin and Ethereum, which most likely means that people are happy to invest in the currency. In the world of cryptocurrency, it’s always difficult to compare as each one offers a different solution to a problem. Bitcoin has become more like a mainstream currency for a simple store of value that can be traded in a decentralized way. Ethereum is an incredible tool with smart contracts, which could hold the key to an autonomous future, and Ripple has its expertise in providing quick and seamless transitions between financial institutions.
The future of currency is anyone’s guess, and if that future is digital, then the transition will be a very slow process. Coins like XRP could become vital to even more banks in future as a way to have an asset that can be transferred immediately. You may see a world where a bank has an equal store of dollars as it does of cryptocurrency. This makes Ripple very attractive as the leader in its field at offering this specific service.
It’s the transition from the old to the new that could be the making of Ripple. As much as some in the community wish for a world where you never have to rely on a traditional bank, it’s not going to happen anytime soon, and Ripple can be a bridge that helps to speed up that process. Not only is this great news for Ripple, but it’s great news for Bitcoin, Ethereum and every other cryptocurrency.
The reason for that is due to the fact that if Ripple gains respect, then everyone else does. Through the existing financial institutions, Ripple can become a trusted currency that opens up the eyes of the many who are still blind to what a digital currency can offer. This trust has already been of a huge benefit for Ripple, but that will trickle down to all the others as well.
The value of cryptocurrencies have been incredible and their rise has been vast, but if you asked the average person on a street, they would have little idea of what it is, what it does and where they could find a token. That lack of knowledge is a problem for cryptocurrency as the world moves further into its digital age.
Article written by Mary Ann Callahan