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RE: Is The Ripple Megabull Over? - Ripple Technical Analysis (June 16, 2017)

in #cryptocurrency8 years ago

Enjoyed the article, thanks.

Just one quick thing. You say that "This means when the banks use Ripple, they use XRP too". This is not necessarily the case, other currencies and pairs can be traded on the ripple network, however the cost will be greatly reduced by using XRP, especially for pairs that are not commonly held by banks,. in this case money would transfer from bank to bank through 3-4 different
currencies before getting to its destination. With XRP the bank can cut the cost and time by transferring via XRP and then directly to the destination.

Anyway up voted, keep the posts coming....

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While other cryptocurrencies like Bitcoin and Ethereum can be sent through the Ripple network, they have to use a third-party counterparty gateway. Just like sidechains to Bitcoin, there will be counterparty risks. Think of it as an additional service that can be accommodated by Ripple but not necessarily. Whereas XRP being the native currency of Ripple will be primarily used by the banks, always. There exist no scenario where XRP is not used. Thanks for your support.