Even though bitcoin can be termed as the king of the cryptocurrency kingdom, its popularity and concept has triggered the development of a long string other new crypto such as Ethereum and now the latest entrant which has been causing a stir everywhere is ripple. Ever since its release, Ripple has been experiencing massive growth to the point that it can now be mentioned in the same breath as bitcoins. Even with the success, ripple has also received its share of negative views from critics. Nevertheless, there are still people who are in the dark about it which is why we took our time and compiled all the information you need to know about ripple.
What is ripple?
Even though it is classified as a cryptocurrency, its operations and also foundations are entirely different from your regular crypto such as bitcoins. So to put it in simple terms, ripple is an open payment and a digital currency. It trades under the symbol XRP and the developing company also goes by the same name.
Features of ripple and how it differs from bitcoin and other crypto
Ripple is centralized
From the word go, we mentioned that even though it is classified as a cryptocurrency, its features are entirely different from that of other crypto’s such as bitcoins. One of its most prominent features is that it has centralized control. In a layman’s language, ripples is owned and controlled by a company which goes by the same name. That means they are in control of its supply in the market and can stop it whenever they need or want to. This is one of the reasons why most people, investors to be precise often shy away from it. However, when it comes to crypto such as bitcoin, the control is decentralized in that yes, it was developed but no one owns it and as such no one can end it.
Enables digitalized transactions
Ripple acts as a payment network which uses XRP. Therefore, it makes it easy for digital transfers and helps eliminate any third party members that the world had to go through before completing a transaction. In other words, it acts as a medium for bank clients to send money from one country to another without having to go through correspondent banks or any individuals. That means, it works faster than any other payment method. According the company’s press release and various testimonials, with ripple, you can send any amount of money to traders and then to another bank where it is converted the currency you want in six seconds or even less depending on the amount we are talking about here. That makes it one of the simplest and fastest ways to send money to your loved ones.
It however does so by eliminating the need for constant fiat currency exchanges. For instance, if a person in South Africa wants to buy something from Japan and they’ve already made their order, in an ordinary situation, they would first have to go through a foreign exchange broker who will change the South African currency into the Japanese Yen for them to pay. But with ripple, it is now possible for the South African buyer to pay the supplier instantly without the need for any extra party or the hassle of going through foreign exchange.
Works with banks
Unlike Ethereum and bitcoin, ripple takes a unique approach of working with banks. When other crypto often work at eliminating any connection with banks and any government backed currency, ripple is a payment method seeking to make things easier for financial institutions and as such works hand in hand with banks and others to ensure that this is possible.
Ripple cannot be mined
Having centralized control means that it cannot be mined like bitcoins. The developing companies have control over this too and releases more ripple into the market whenever need arises.
Is it a sound investment?
Well, we don’t have a direct answer to that but that entirely depends on you. Ever since its inception in 2012, it has been doing pretty well. For instance, its market capitalization has increased by approximately 7700% while its value is currently over 7000%. Additionally, it has already been accepted by various banks across the world as a legit money system. For instance, the national bank of Abu Dhabi applies ripple for international transactions. Besides that it is already in partnership with over sixty firms across the world such as UBS, UniCredit, RBC and Santander and various others.
Even though it is not on the same level as bitcoins, its increasing number of partners due to features such as high scalability, secure transactions and several other features make it a great investment. Nevertheless, it is essential that you keep in mind that the developing company owns about 62% of its total supply which means they are in full control of how it performs in the market because they have the power to hold for the value to go up or release it causing the value to plummet.
Where can I buy ripple?
So far, ripple looks like a good investment but where can you buy it if you want to start investing in it? Well it is widely available online and you can easily get it by either exchanging bitcoin or ether for ripple. That means, if you have any bitcoin, you can sell it to crypto exchange brokers such as coinbase in exchange for XRP tokens.
Most of the entrants in the cryptocurrency arena often don’t remain relevant for long. They enter the market at a hyped up rate, their value and market cap skyrocket for a while and then all of a sudden they take a nosedive. Thus there is a good reason why ripple is still relevant and going strong six years since its entrance into the market. It takes an ultimately unique approach which is why its popularity continues to increase with each wake. Even though it has its own share of pitfalls ripple is definitely the next big thing.