Crypto-purists hate Ripple. I guess they hate making money, too.
Here's the deal; the hardcore crypto-purists believe that a cryptocurrency's first job is to displace the central banks of the world and have money exist outside of government. Since Ripple is playing nice with the banks, this means "it's not real crypto. " It's a co-opted movement supported by the big banks.
I completely agree. But outside of my political beliefs, when I invest, I want to make money.
And because of that, Ripple is a fantastic investment.
Why Ripple Will Rock
Ripple's prime directive is to replace the banking system's SWIFT technology. SWIFT started in the early 70s and adopted in the US in 1979. So the tech is really old.
So old that if you want to send money to another bank, it takes 3-5 business days, can only be done when the banks are open, and is very expensive. Ripple's CEO says it's easier to get on a plane with a bag of cash, instead of sending it through the banking system.
Ripple is looking to replace SWIFT and it has a helluva chance in doing so because its transactions take 3.5 seconds and is 80% cheaper.
Given this huge tech disparity, it's clear that SWIFT's days are numbered.
The Road Map
There are about 25,000 banks in the world, and Ripple has signed up about 100, one of which is the 4th largest bank in the world, The Bank of Tokyo-Mitsubishi UFJ (MUFG).
MUFG will utilize Ripple's blockchain to keep track of account balances in between different global banks they work with. They aren't using Ripple's crypto currency yet, XRP.
That's because the first phase is to get banks using the blockchain, then convert them over to XRP to settle up balances.
You might have heard the common criticism of XRP as an investment; the banks don't have to use it, so it's just junk!
Not so fast. The second phase of Ripple, getting banks to start using XRP to settle up balances, truly won't be implemented for another 3-5 years. But in the meantime, XRP be slowly implemented in the early adopting banks, which means the supply of available XRP will slowly go down, thus bringing up the price.
Concerns About Ripple
One of the biggest concerns about Ripple is that it its currency, XRP, is "pre-mined," which means that all the XRP that will ever exist, exists today.
The other concern is that most of the XRP in existence is held by employees and shareholders of Ripple. This could mean that at any point in time, the majority of XRP could be dumped by Ripple employees, which would send the price crashing.
To counter this concern, Ripple announced they would be locking up half the supply of XRP, 50B, into a smart contract that will be released once a month for 5 years, a steady trickle supply of XRP, thus ensuring no dramatic dump.
At the same time, as banks begin to use XRP to settle up balances, a little bit of XRP will be destroyed in every transaction. This will also make XRP more valuable
Ideology v. Making Money
I'm an anarcho-capitalist and do not like the government at all. But putting ideology aside, Ripple looks like a fantastic investment, and that's why I'm stacking.
'I'm an anarcho-capitalist and do not like the government at all. But putting ideology aside, Ripple looks like a fantastic investment, and that's why I'm stacking.'
Well summarised- followed
Thanks, dude!
Sounds like good advice!
My thoughts ;)
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Nicely laid out. You are right, from a traders point of view, ripple is a very interesting investment opportunity. But a lot of people, like myself, are not traders. Money is not the main motivation. For me it's seeing that this technology has the strength, to take away power from the big corps., enabling people all around the world. That's what I want to invest in. "A beter future" . Nonetheless, enjoyed your article :)
Great explanation. This is a strange coin for me also, i just wish they had a wallet so i could store the funds offline as i hate keeping them on the exchange. I think down the road this could be a big coin though. Wish i would have bought in sooner!
I'll make a post about this soon that will explain how to keep your XRP safe.
Ripple HODLER, checking in. Good, simple explanation of why it's a solid project. Also, the founder who has a shady history apparently is not there anymore.
Very good post. I was about to post a similair post. Estate or plastic cups, people should always do their research. due to the anonymity behind coins even more so. An interesting website I found: https://www.coincheckup.com They seem to give this complete indepth analysis of all cryptocoins. On: https://www.coincheckup.com/coins/Ripple#analysis To see the: Ripple Investment analysis.
Ripple is just another government control tool to keep you in dept why let the feds ruin a great thing like the independence of cryptocurrency?? Please dont be a sheep and get off the governments tit and stand on your on two. INVEST,PROMOTE,USE AND TRADE STEEM NOT RIPPLE
sorry but xrp has no investment value imho. The companies that are going to the use the network don't need to use ripple. So if money gram uses it they can still do it in usd. THey don't have to use the ripple coin. So the coin itself really has no value because it does't have to be used on the eco system. This is what i been trying to tell people that cryptos are not what they are cracked up to be. Businesses are finding a way around using the eco system without using the crypto itself. So the crypto really has no value just the network does.
But not all the transactions that banks make on the Ripple platform have to use the XRP tokens, as was pointed out by The New York Times. Instead, banks could use dollars, euros, or another local currency on the Ripple platform, circumventing the alt-coin.