Ripple (XRP) as cryptocurrency has got everyone’s attention for its
Ripple (XRP) as cryptocurrency has got everyone’s attention for its robust transactions system, a well-built infrastructure and has proven the test of time. Ripple has displaced the second-seeded Ethereum to take the spot in overall market capitalization. So, is it the best cryptocurrency in the market to bet your money on, well we will try to answer that question in this segment of pros and cons.
We will try to look at the currency from different viewpoints and see why it fares better than many other currencies trading in the open market, and what are certain limitations which are binding the investors from betting on it.
Pros:
1. Ripple Boasts of a well-structured infrastructure
Ripple’s XRP protocol is headed by xRapid Product which results in cheaper and faster solutions than its competitors. The brand boasts of a fast transaction system, which allows a user to complete a transaction within three minutes. The quick sales result in saving the costs in upwards to 40%-70%. The well-built protocol makes a highly scalable product which can adapt as per the trends of the market.
The team behind Ripple is aiming at 1500 Transactions per second in near future which is significantly higher than what many of its competitors are currently able to offer. Experts are of the view that if ripple continues on its current path, it will become one of the first cryptos to gain universal acceptance.
2. Great Partnerships and Better Investors
Any brand gets the trust of a market when big investors see potential in them. Anyone can make tall claims and false promises to gain attention. But, only when people see that big firms with vested interest investing in new technologies, they decide to bet their money upon it. Ripple has undoubtedly got the trust, investment, and attention of many such big investors. For example, Japan’s SBI group has announced that they would implement Ripple more significantly into their system.
Ripple has a partnership with some of the most prominent institutions in the financial world, and many central banks have already made amendments to incorporate Ripple into their system. Not only that these partnerships are proof of trust that Ripple enjoys. Many more investors and banks are joining on the bandwagon almost on a daily basis. So if you are looking forward to investing your money in Ripple, you won’t be disappointed.
3. Stability and price factor
One thing that separates Ripple from most of its peers is the small price bracket for one XRP (currently at $0.40). The low token price means anyone with a small budget can invest Ripple. One does not have to make elaborate plans and know the whole history of trading to investing in the cryptocurrency. If you are sure of its ability you can spend slightly more significant amounts, and if you are new, you can start with a small investment with a few coins, to begin with.
Also Read: How to Sell Ripple?
Another factor that adds a feather to its cap is its stability when compared to recent Market crash; Ripple showed the least volatility. Other cryptocurrencies lost more than 25%-30% of its market capitalization, while XRP showed resistance even on worst days. So, as a noob, you can trust your money on Ripple even on gloomy days.
Cons
1. The absence of Real World utilization
The biggest hurdle in the growth of any cryptocurrency or new technology, in general, is real-world use. XRP faces similar problems, even though it has got the trust and investments from major banks and institutions. To work in real-world, the core team behind the currency need to find different ways to make Ripple find use in the real world and can be liquefied against any other mode of transactions. thus, clearing the doubts over the future of ripple
The real victory for ripple or any other cryptocurrency would be when banks and financial institutions start to take payments in XRP. The days are quite far as it would require more significant infrastructure, better technology, and more acceptance.
2. A Regulation Headache and ‘Centralized System’ controversy
“With great power comes greater responsibility” The overused quote from spider-man fits aptly right for Ripple. In the beginning, Ripple faced severe charges of misconduct and numerous lawsuit claiming that the coin is being controlled by the inventors, Ripple Lab to manipulate the market.
The firm has always denied the allegations and also won many of the lawsuits filed against it. But, in this day and age of social media and Fake News, everything spreads like wildfire, and the claims against the company that it is not decentralized are certainly hampering its progress.
Final Thoughts
Your knowledge on blockchain and cryptocurrencies might dictate your interest in Ripple, but one thing that can be pretty sure is ‘early birds catch the worm.’ If you have a vested interest in cryptocurrencies and believe it will certainly impact the future whenever it gets the resources regarding technology and wider acceptance, then you might give it a thought. However, we will leave it upto you to decide. The ripple has certainly come a long way from being another cryptocurrency to the second most valuable one, only behind the pioneers’ Bitcoin.
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