The craze over bitcoin has given other crypotcurrencies like litecoin and ethereum their moments in the spotlight. Now, it’s ripple’s turn.
In recent weeks, ripple’s value has spiked, making it the second most valuable digital currency and bringing it newfound attention.
The relatively obscure cryptocurrency, also known as XRP, is now worth about $2.60 with a market cap of more than $100 billion, according to Coinmarkertcap. In early December, it was trading at just 25 cents.
Even with the spike, ripple is worth considerably less than bitcoin. After a tumultuous December, bitcoin was trading around $15,000 late Tuesday with a market cap of more than $250 billion.
What is Ripple?
Ripple is the name for both a digital currency (XRP) and an open payment network within which that currency is transferred. It is a distributed, open-source payments system that’s still in beta. The goal of the ripple system, according to its website, is to enable people to break free of the “walled gardens” of financial networks – ie, credit cards, banks, PayPal and other institutions that restrict access with fees, charges for currency exchanges and processing delays.
What does Ripple do?
According to is OpenCoin, the company behind ripple, the currency addresses the need to keep money flowing freely. A company blog post titled “Ripple and the purpose of money” gives a brief history of money and its transportability, and points to the frustration of having banks and other institutions impede the transfer of funds with transaction fees and processing delays. The goal of Ripple, it says, is to build on the decentralized digital currency approach set by bitcoin and do “for money what the internet did for all other forms of information.”
Top Reasons By Which Ripple Price Peaking up High:-
1- Operations :
Ripple is working with some of the biggest financial institutions around the world. Ripple aims to power the whole financial sector by making instant transactions possible at a fraction of the current costs. It provides a frictionless experience for global fund transfer using the blockchain technology. In future, it is expected to act as a liquidity solution for the cross-border transactions. Banks and Payment Providers can use XRP to settle multi-currency transactions to minimize the overheads.
Right now SHIFT facilitates most of the international payment transfers. Whenever we make any cross-border transaction, we need to provide the SWIFT code of the branch of the bank. SWIFT has a monopoly over cross-border settlements. It has more than 11,000 financial institutions and 200 countries on its network. Ripple is associating with big financial institutions and working with many banks to incorporate its blockchain technology. It’s hard to say how soon or whether Ripple will be able to take SWIFT down or not. However, it can indeed break the monopoly of SWIFT over the international fund transfer.
2- Powerful Technology :
Ripple can process 1500 transactions per second, which is huge as compared to Bitcoin. Bitcoins can handle up to 7 transactions per second. Ripple’s technology is powerful enough to replace international payment systems such as VISA while reducing the cost and allow instant transfers.
3- Trust :
A large number of banks from around the world are actively working with Ripple to implement its technology over their payment infrastructure. It makes Ripple trustworthy, and investors find XRP to be a comparatively safer bet as compared to other cryptocurrencies.
4- Cryptocurrencies As Safe Haven :
Cryptocurrencies performance during 2017 will be a determining factor for their demand in 2018. 2017 saw the price of XRP surging rapidly during the first half. Other cryptocurrencies won’t find it easy to copy the market development of Ripple. Investors interested in the digital currencies as a haven for the uncertain times will find Ripple as a promising candidate.
5- Familiarity :
Bitcoin and Ethereum are the most traded cryptocurrencies. A large percentage of cryptocurrency traders and investors are still not familiar with Ripple despite its promising technology. Once, a few institutional investors join the network and Ripple permeates the mainstream investor’s community like Bitcoin and Ethereum, an influx of trend followers can make the XRP prices shoot through the roof.
Predictions For 2018
- Looking at the latest developments and increasing interest towards the XRP, by the end of 2018, the Ripple price is expected to cross the $7 barrier at least.
- Trading Volume of XRP is nowhere close to the most popular cryptocurrencies,B TC and ETH. Trading volume is expected to grow in 2018, and a rise in speculative activity on the Ripple cryptocurrency can even raise its prices to $7-$10 mark as well.
- Though the overall price of XRP is expected to witness an upsurge, not all months of 2018 will be the same. A lot of cryptocurrency enthusiasts don’t like the idea of banks or any financial institution or a company regulating the cryptocurrency. In the long run and as long as banks exist, XRP is likely to prove as a solid investment, but its prices can see a downward trend in some of the months.