After Coinbase dispels rumors of Ripple support, profits return to Bitcoin.
Ripple went on a remarkable run over the last few weeks, gaining more than 1000% in value. Many traders were hoping for a launch of Ripple on the Coinbase platform, remembering the meteoric rise in Bitcoin Cash's value after it was added as an offering on Coinbase. Soon after an announcement by Coinbase that no new assets were officially selected at this point in time, traders began to take their profits from Ripple and return funds to Bitcoin.
Since the announcement, Bitcoin has risen over $1000 USD in value and trading volume has jumped considerably, while the value of Ripple has dwindled.
The two coins could not be more different. Bitcoin was originally conceived as an answer to the corrupt nature of the banking system that caused the devastating housing market crash in 2008. Created as a sort of digital gold that would be decentralized - not controlled by any one entity - with built-in scarcity, and a gamified incentive to validate transactions and maintain integrity, Bitcoin was - and is - a counter to the natural tendency to become corrupt when possessing too much power and control.
Ripple, on the other hand, was created as a banking tool - pre-mined, without any outside influences to ensure integrity - and with controlled distribution, along with an extremely high total circulation of 99 billion. Much of the Ripple circulation is held by its creators and is locked up, to be distributed to partners as needed over the course of time. This is a fully centralized banker's coin - to be used for global transactions by institutions.
This is not to say that money can not be made off of Ripple's growth. In fact, I encouraged purchasing Ripple before its enormous growth. It is a product that serves a purpose, and for that purpose, it may well end up being an excellent product. But it is not a true cryptocurrency.
One does have to wonder, is it possible that Coinbase made this announcement in order to calm prices in Ripple and other coins before launching, in order to boost profits? The digital framework guidelines that Coinbase established would suggest that Ripple is not a terribly good candidate, since it is a centrally-controlled coin. Still, it would make sense for Coinbase to provide access to such a popular coin, and this dip, coinciding with a bull run in Bitcoin, might just offer an excellent time for such a launch to occur.
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Very interesting hypothesis making a lot of sense. Since we're still in the Wild West phase of cryptos anything is possible :-D
Ima hodl anyway!
Indeed it is the wild west! There is no regulatory overseer that would prohibit this from happening. If you had the tools to make billions of dollars and no legal barriers to prevent doing so, what would you do?
Well, honestly... I wouldn't since it is what we call stealing from others. And I am by no means a religious person, but stealing from others will somehow come back to haunt you one way or the other ;-)
OK, but if you were a globalist banker, do you think stealing from others would be a big moral concern?
Is why I am not a banker ;-D
Tough one for ripple. Lot of people are gonna develop cold feets. Coin futurism drives price
After the horrid launch of Bitcoin Cash, I can't see Coinbase launching any new coins for months - they really botched that up and hurt their reputation as well as cryptocurrencies in general.
I agree that their reputation is the one factor that may be holding them back from launching Ripple, at least right away. I suspect they may launch another asset first to allay negative PR, following that by launching Ripple.
XRP is truly different from bitcoin, and it is surprising that coinbase hasn't added it to their exchange yet. It will defiantly surge if Brian Armstrong even mentions his consideration of adding XRP.
It would violate Coinbase's own guidelines to launch Ripple on their platform. Having said that, business is business. If customers want a product, why shouldn't Coinbase offer it?
Could Ripple be a good thing for the cryptocurrenies over all??? Obviously it is nothing like the true crytpos and is a way for the banks to try to gain control. But will it bring in more traditional investors? Could a bank issued coin add "perceived legitimacy" to the other cryptos?
Where do you get your crypto news? I would like to find a good source to keep up with the happenings market.
It's an interesting question. I see Ripple as more of a competitor of cryptocurrencies in that it isn't truly a cryptocurrency, but is offered in the same market. It's really an alternative to cryptocurrencies. In that sense, I don't know if it lends any legitimacy to the other currencies, particularly because its selling point is that it is supposedly safer and more secure being that it is backed by establishment institutions. If anything, it may be taking away from the market and diverting money that would otherwise support it back to the banks and establishment institutions.
I get my news from all over the place. I follow most currencies in which I'm interested on Twitter. I often pore over market movements and when I see something changing, I quickly look for news about that particular movement. So yeah, I don't really have a single good source.