Perspectives of Ripple – Hype Vs Reality
The controversial cryptocurrency Ripple has managed to win a lot of popularity from feverish hype of Bitcoin. It is slowly attracting the attention of people who can start investing funds helping it to grow in both price and popularity. The thing that troubles people the most is that if it worth of investing or is it some sort of an inflated fraud.
Let’s see what Ripple really is and what potential hides within the crypto shell.
Ripple – Who Are You
This question is probably the most attention taking one. This cryptocurrency is actually a financial software company that came to existence back in 2012. Originally it was a special payment system that was designated for conducting money operations throughout the world with incredibly small fees for operations. The system was equally useful for individual people and large financial companies.
Currently we can observe a tendency that more financial establishment are using the XRP (code for Ripple). As it is a young currency the difficulty of blockchain is low and relatively low popularity does not impact the speed of network data transfer, as it happens with Bitcoin and other extremely popular crypto currencies. The transaction charging fee is close to zero.
60% of Currency Are Privately Held
The creators originally made 100 billion XRP, although they issued only 40 % of a total money amount. That caused a lot of anxiety among the investors. The creators managed to calm the rising wave of fear by stating that if all the coins were issued at the same time that would reduce the price of it to naught.
It might seem that the money is controlled by a third party, but actually it preserves the stability of rate growth and popularity among the users. The risk that currency will collapse with such approach is rather low.
It is Centralized
That is the scream that issued by people who support the usage of cryptocurrency. The ideologists state that such approach is wrong. In this aspect they are correct…almost. The XRP is simultaneously centralized and not. The coins are still issued by the organization, but the network where all operations take place is totally free.
Basically if the company ceases to exist, the XRP will still be active regardless of the side impacts.
Currently Ripple is one of the most successful among promising cryptocurrencies in the market. It is growing in price but the development is quite slow though very stable. You will not find here any regulations that are capable to assassinate the very idea of cryptocurrency and their difficulty of operation confirmations makes it possible to buy it by average people who do not own mining farms or large quantum computers.
Yes, the dream of investors to gain usd 10 trillion cap seems a fantasy, especially with a current usd 650 billion rate right now, but the potential shows that it might be possible in a few decades. So that might be considered as a very long term investment.
Learn more about short term Ripple forecast.