Do you know what happened to me when I started researching Ripple for writing this article? I ended up buying Ripple! I bought Ripple once and in the last week I bought them even more. However, situations of cryptocurrencies change rapidly. The value of Ripple went like 45x higher recently in 3 months. Does it mean that Ripple is 45 times worse investment after that rise?
In this article I am going to discuss following subjects, “Is Ripple XRP Worth Buying? Is Ripple a Good Investment? What Is Ripple and How Does It Work?” Are you ready? Spend the next 1-2 minutes with me by reading this article.
You have probably heard of Bitcoins. It’s a decentralized digital currency that allows you to make immediate payments so you don’t need to wait 2-3 business days that the money goes from your account to another account. Ripple has many same benefits but it’s also significantly different.
Ripple is also a cryptocurrency and a new technology. It means that it’s completely digital. You can understand the difference between dollars and Ripple. You can have dollars in your hands but you can have Ripple only in your bank account.
Ripple is a centralized currency, unlike Bitcoin. It means that one company owns the system and more than 70% of Ripple. You may think that what if the company just do the infamous, “Pump & dump” -move. It means that they promote their system until the price goes high. Then they sell all of their investments, take the money and leave.
However, it won’t happen at least in the near future. They announced that a big part of their Ripple holdings will be locked for 5 years. So, they are not going to dump it during that time. That move will probably take the price higher because there are fewer Ripples available for trade. If there’s lots of something available, the value of it usually goes down. For example, if there is lots of oil available in the world, it’s not valuable. But now when we know that there isn’t infinitely amounts of oil. It affects oil’s price so that it goes up.
I want to underline the biggest benefits of Ripple compared to “normal currencies” like euro and dollar and compared to cryptocurrencies like Bitcoin and Ethereum.
First of all, imagine that you are in the U.S. Then you have a friend, a business partner or a client in Australia. You need to send him dollars quickly. What is the fastest way?
One downside of Bitcoin is that it’s possible to make only a limited number of payments during a day with our current technology. However, Ripple enables to make much more trades every day. It makes it’s easily scalable.
One of the greatest benefits of Ripple for banks is the price efficiency. On Ripple.com is presented that banks can save millions or even hundreds of millions of dollars each year with Ripple by using this new technology. That’s one reason why so many big banks worldwide have become Ripple partners.