XRP is one of the greatest cryptocurrencies on the market, it’s innovative and looks like it’s set to stay as one of the biggest challengers to Bitcoin. It’s a coin that has a lot of potential for its XRP to USD value to increase over the next few years.
It was created back in 2012, before the likes of Ethereum, which explains why XRP was never created with the use of smart contracts. It is very much the opposite of Ethereum. While smart contracts make their blockchain one of the most innovative out there, it’s not without the problems.
One area in which XRP excels and others fail is the scalability and fees. Both Ethereum and Bitcoin have huge scalability issues that they are trying to solve, and as the value of those coins increases, so do the fees that are charged for transferring over their network.
Ripple, on the other hand, made XRP the standout leader when it comes to these points. Bitcoin and Ethereum are going to struggle to progress and transaction speeds are a great example of that. In this modern age everyone expects everything to be completed in an instant. A transaction on Bitcoin can take up to an hour and on Ethereum it can be up to 15 minutes.
If cryptocurrency is going to evolve and move into everyday society, then those types of waiting times are obviously unacceptable. We live in a world where everyone is used to extremely fast transactions that are done by Visa, and while XRP isn’t quite so instant, it only takes 4 seconds to finalize a deal. If you’re looking for a coin to make regular transactions for small sums, there is currently no better option.
Those low transaction fees are a huge positive as well as currently it’s only worth making transactions through Bitcoin if it’s for a large sum of money. XRP fees are a small fraction of its native token, which was required for its original main aim of being the cryptocurrency of choice for all banking institutions. A regular fee is set at 0.00001 XRP, which translates to $0.000005 (according to the current XRP rate).
Low fees and quick transaction times have made this coin an attractive payment option for many institutions as they know that they are going to be able to make transactions over long distances with the minimum of fuss. The associations that Ripple has made with banks contribute to the token being considered a worthy investment, as it has shown that Ripple can be trusted to provide a secure financial solution to a long-standing problem.
That financial solution may see XRP unintentionally becoming the one coin to break into the mainstream as a cryptocurrency for the masses. The ability to make microtransactions is a vital step in any cryptocurrency being accepted as cash is today. Imagine, you go to a shop and spend $5.31 on your card without any issue – you currently couldn’t feasibly do that with Bitcoin, but you could with XRP, theoretically.
This was never Ripple’s intention, but it could become a brilliant accident. We could refer to a domino effect that could eventually see Ripple becoming the cryptocurrency king. The more financial institutions use Ripple, the more trust they’ll get and the more they’ll move into the public eye. The more Ripple does that, the more XRP will be used until eventually people who have never heard of an online cryptocurrency wallet suddenly have one.
One thing that could negatively impact the success of this coin is if the SEC decides that it is a security. If it’s seen as just a currency like Bitcoin is, then it will come under the same regulation. But if it is seen as a digital asset on the basis of making ventures, then it could well be seen as security. This would make it more liable for litigation.
It could have a huge impact on Ripple, as opening itself to the US market would not only increase its appeal, but it would most likely increase its price as well. If the SEC decides that Ripple isn’t a security, then we could see a huge increase for Ripple.
While XRP might be the coin for the future, in order for it to become a mainstream currency, the whole cryptocurrency market needs to become more stable. The volatility that it currently has hurts its chances of ever being taken seriously as a means to complete day-to-day transactions.
You know that if you spend two dollars on a drink, the next day it will be two dollars again. Currently with cryptocurrency, you don’t know if it could be $2.50, $1.50 or even worth anything at all the next day. This is why cryptocurrency is a long way from being seen under those circumstances. Over time, though, surely this will change, and if the market becomes less volatile, it’s currencies like XRP which are going to thrive.
Will the XRP price skyrocket? Well, there are signs that there is plenty of potential for the currency to increase over time. In the long-term, it looks to have a very positive future as it isn’t facing the same kind of issues which are being faced by Bitcoin and Ethereum. There will still be plenty of challenges ahead, and you never know if another coin which is bigger and better than all the others will come along.
In a volatile world of digital currency, XRP looks like one which will be able to fight through and remain a dominant currency. With its potential, it might in the next few years challenge Bitcoin as the world’s biggest cryptocurrency by market cap.
Author’s Bio: Mary Ann Callahan