In terms of crypto asserts, ripple is certainly a prominent one as it currently ranks as the third largest crypto currency in the market. The platform is developed by ripple labs. The real intent or purpose of ripple is to provide a gross settlement system to enable cross border currency or asset transfer for financial institutions like banks, exchange and payment providers. It provides liquidity using the blockchain technology.
The main aim of ripple is to provide a system which enables secure and nearly free global transaction for any size with no charge backs. Ripple’s main targeted audiences are the international banks which can hold a large amount of XRP for instant transaction. However even though ripple’s main target audience is the bank even common people can use ripple for money remittance purpose.
Ripple’s native token which is XRP has a future supply of around 100 billion tokens. However it cannot be classified as a deflationary token. Practically, ripple is not exactly a crypto currency since it has a centralized and permissioned structure. It does have external validators. You must realize that ripple technology doesn’t necessary need XRP tokens to functions. If any common bank or entity is willing to use it they can do so without buying or holding XRP token in reverse.
However you are not at loss as the XRP tokens have severe volatile value. If you want it to be useful you need to have a large number of tokens. However it is true that crypto currency does have the potential to replace our traditional Bank payments. It is surely better suited for the purpose. Even though the whole technology is revolutionary and has much potential; it is not the same case for the tokens. In fact the value of crypto currency has not been on the climb since the end of 2018. The value of ripple went from $3 per coin to 20.30 USD at the end of 2018.
The value is also not expected to grow at an alarming rate even in 2020. It is predicted that the value is going to be between 0.30 dollars and $1. It is true that ripple outdid both Bitcoin and Ethereum. There are also many banks and countries that are slowly starting to see the potential of ripple currencies. The whole technology is actually very ideal for banking system. It is also a strong point that the blockchain technology cannot be tampered with or changed in anyway.
This means that the whole network is a much secured one. However you must remember that ripple’s native token XRP aren’t equity shares. This means that only buying the token doesn’t give the holder any stake in the company’s profit. It is also true that there is no significant use of the technology as of now at a worldwide stage.
If ripple wants to continue in the world market it needs to add more bank and increase the ease of access to XRP so that people can use it at the everyday basis. Only this can make the future of ripple a stable one. After all, the technology is good enough and at the end of the day it is a good technology driven platform which can help in shaping the future payment methods. However if you are still interested in investing in ripple it is advised to do your own bit of research. Remember crypto currency market is a very volatile one and you should double check on every step you make.…