Ripple (XRP) is a popular part of the rapidly growing cryptocurrency world that has attracted many investors’ attention in a rapidly short period of time. Those who purchased XRP during its initial years at the beginning Ripple price, have reported massive profits over the recent years. But what exactly is Ripple? It is a platform built using advanced blockchain technology to facilitate faster and cheaper cross-border transfers. Before proceeding further, you should be clear that Ripple is the platform, and XRP is its native currency. People often use the two terms, i.e., XRP and Ripple, interchangeably, so don’t get confused between the two.
If you’re an investor eyeing lucrative crypto investments, don’t be wary by looking at performing cryptos like Bitcoin, litecoin or Ethereum. There is a certain level of maturity that is attached to these cryptos. Example: Ethereum price range can often be overwhelming and lets you take a step back, here is when you might want to take Ripple seriously.
Not just from a price perspective but also from the point of real world utility, Ripple surely ticks your checklist. It is one of the fewest cryptocurrencies whose demand and growth are not solely dependent on the social media hype that can die anytime.
To help investors’ make informed crypto investment decisions, we have curated this epic guide that covers every important detail one should know before investing in Ripple. So let’s quickly head to the points shared below.
Ripple is Providing a Real-World Service
Unlike many cryptocurrencies that only have fancy whitepapers but no real life substance, Ripple is quite different. It was created to solve real-world problems. Ripple enables financial institutions around the world to transfer payments almost instantaneously. It also costs a fraction of the money transfer fees that banks usually charge for making international payments.
If you’ve witnessed the ICO burst in 2018, you would have seen numerous cryptocurrencies ceasing to exist. Luckily, Ripple managed to hold its relevance even after the market crash. If you are planning to bet big on cryptocurrencies that you feel would last in the long run, Ripple should be your choice.
List of Financial Institutions Using Ripple
Owing to the utility it provides, Ripple is now being used by numerous top financial institutions around the world. Santander (USA), BeeTech (Brazil), Canadian Imperial Bank of Commerce (Canada), Kotal Mahindra Bank (India), Indusland (India), InstaRem (Singapore), and Zip Remit (Canada) are some of the financial institutions that are using Ripple to facilitate faster and cheaper cross-border transfers.
It is expected that more financial organizations are expected to adopt Ripple in their processes. And more the number of users, the more will be its growth and demand. Ripple is currently aiming to beat SWIFT, which has thousands of financial institutions as customers. If things go readily as planned, you can expect Ripple to gain a prominent position in the world.
Banks May Need Digital Currencies
All banks need extreme amounts of liquidity to function, and it is increasingly becoming a pressing concern for many. However, the industry experts believe that digital assets like Ripple (XRP) can become the ideal tool to deliver the required liquidity. Speculators have already started betting that banks around the world would need a huge amount of XRP in the coming years as a reserve currency to conduct transactions smoothly, which would ultimately lead to the growth of Ripple.
Unique Value Proposition
In contrast to the other cryptocurrencies like Ethereum, Bitcoin, Dogecoin, and others, Ripple (XRP) isn’t generated by mining. The total number of Ripple (XRP) coins is limited to 100 billion, and approximately 99 billion have already been created by the company Ripple Labs. Out of these 99 billion coins, 55 billion have been put into circulation, and the remaining will be launched in the market at the company’s discretion. Contrary to other popular cryptocurrencies, the supply of XRP isn’t abundant. And if the supply remains lesser than the demand, its price is certainly going to increase with time.
Should You Invest in Ripple (XRP)?
If you’re a seasoned investor, we’d suggest giving Ripple a serious thought. XRP is now starting to dominate the number of cryptocurrency exchange platforms around the world. And according to the team behind Ripple, there is an ever-growing list of businesses in their pipeline that are interested in using Ripple by integrating it in their payment workflow. As these companies start using Ripple in their day-to-day operations, you can expect Ripple’s price and growth to skyrocket. While it will take time, it is more likely to happen over a period of time.
However, since no cryptocurrency is immune to volatility, we’d suggest doing our own research before investing in any digital currency. Also, make sure to double-check whether the cryptocurrency aligns with your investment goals or not. It will ensure you’re adding the right cryptocurrency to your portfolio.