Ripple is emerging as the second most powerful cryptocurrency after Bitcoin. Many investors and financial institutions are showing their interest in ripple. Unlike Bitcoin (which uses Blockchain), Ripple works on its own patent technology which is named as Ripple protocol consensus algorithm (RPCA).
So far, Ripple has set various milestones in the world of Crypto Currency and one of them is getting recognition as the world’s cheapest currency exchange platform. Any transaction charges just cost you $0.00001 which is much lower than Bitcoin and Banks.
Just $0.00001! Does it true?
Unlikely Bitcoin, Basically Ripple’s intended goal was to offer the world’s fast, Secure and cheapest currency exchange services. And, yes it’s true every transaction just costs you the above-mentioned figures which are $0.00001.
Now you might be wondering why the transaction isn’t free and the answer is to keep it safe from hacker attacks.
What is Ripple?
Ripple is much different than Bitcoin and other Cryptocurrencies but still falls into the same category. Basically, Ripple is a payment network (Ripple Net) as well as a leading Cryptocurrency (XRP).
In 2012, Ripple was created in order to make cross-border transactions faster and more inexpensive.
In short, Ripple is a Real-Time Gross settlement system that was created by Ripple Labs Inc to make currency exchange transactions in a few seconds (4 Seconds). The platform works on the public shared ledger (XRP Ledger) to have secure and fast transactions over the network. So ultimately, Ripple is both Crypto Currency and technology so don’t get confused over it.
Would Ripple Rule Market?
No one can claim 100% but as per recent statistics and predictions by experts, there are massive changes Ripple would witness dramatic growth in its price.
In fact, some Crypto experts are stating it could be the next Bitcoin in 2020. The lowest transaction fee and faster processing are two pillars that are making financial institutions use them.
The dramatic rise in price this year may be the signal for investors to believe in Ripple but still, many experts are recommending a close watch before jumping into it.
On another hand side, if we look at Ripple from the banking perspective then it is going to turn out as the largest currency exchange entity after the US dollar.
What happened in 2017?
When the prices of Bitcoin and Litecoin started depleting then investors think to invest in other cryptocurrencies which give a great return in long term. So far Ripple (XRP) has seen a 7000% increase and most peal cam in 2017.
Why do financial institutions choose Ripple’s XRP over Bitcoin?
The most important part of the success of Ripple is its transaction speed and cost. Many worlds leading banks are also planning to adopt Ripple for cross-border transactions. Even though ripple does not follow the complete guidelines of Ripple but still it remains in the top 5 cryptocurrencies which shows it would shortly see a rise.
On another hand, many banks are planning to bring xRapid (XRP for Currency6 exchange) in cross-border transactions which would reduce the transaction time and cost as well. Bitcoin is too slow and expensive for cross-border transactions which is also making investors welcome this currency in the market.
Furthermore, the company like Airbnb and Amazon need quick and cheap payment transactions from across the globe and they may be using XRP as the payment currency.
That’s not all, many crypt currency experts are claiming Ripple is going to see a dramatic rise in prices till 2020. Many banking institutions and IT, giants are going to adopt it very soon.
Leading banks like >Sanator, American Express, and Western Union are in partnership with Ripple to use xRapid for all transactions. But you need here to understand one thing banks are not using XRP which is crypto Currency so don’t get misunderstood.
xRapid is a transaction system to transfer currency across the globe within a few seconds( Approx 3 seconds) and with less transaction fee.
XRapid uses XRP as a bridge currency to handle internal currency exchange which gives it great recognition.
For Example: If John is sitting in the US and has given $5000 to Mark who lives in India. Then if John goes to banks then this process may take several hours or days and also charge the highest transactional cost but Ripple’s XRapid can do it within a few seconds with just $0.00001 as a transaction cost.
Would Ripple Beat Bitcoin?
No one knows what would happen next but many case studies are clearly defining that if all banks and IT giants would adopt Ripple for online payments then Ripple would easily beat Bitcoin in the next few years.
Secondly, Bitcoin transactions are too costly and slow which would provide enough ground for Ripple to expand. Even though, Ripple doesn’t follow cryptocurrency guidelines like Bitcoin and some experts are considering it a centralized crypto Currency.
What’s the Presence of Ripple in Cryptocurrency?
Around 50% of XRP’s are owned by Ripple and it releases a certain part of it from escrow every month which is the totally centralized crypto thing. This means Ripple can drive the market but Ripple is totally different it is a fully decentralized cryptocurrency. But the thing to know here the consistent growth then Ripple’s XRP is also in the race. So far, Ripple has witnessed a great change in its prices.
Ripple developers have full control over the release of XRP from the escrow which makes it highly centralized. Secondly, it is open source and gives hackers an opportunity to hack it and they might be exceeded. So it’s hard to say whether Ripple would beat Bitcoin or not.
Is It the Right Time to Invest in Ripple?
Cryptocurrency is a complex game and it requires a close watch from different perspectives. Ripple also comes in the top 5 cryptocurrencies so there is an equal opportunity to invest in it but the market keeps on changing so it’s better to have research first.