In this post, we will talk about 5 important things you need to know about Ripple (XRP) before investing a dime in it.
What is Ripple?
Good. First things first. Ripple is both a network and a cryptocurrency which is traded under the abbreviation of XRP. The goal of this cryptocurrency is to one day substitute financial networks like PayPal, credit cards and other institutions that charge high transaction fees. Although it is true that Ripple also charges a tiny transaction fee, it is negligible. At the time of writing this post, transaction fees in the Ripple network cost 1 / 1000 of a cent. In comparison to the fee charged by PayPal (2.9% + 0.30 USD), this is a massive improvement.
With a market cap of roughly 11 Billion USD, XRP is the 3rd largest cryptocurrency after Ethereum. Its low market cap also makes it an investment with huge upside potential. Right now it is trading at 0.27 USD, expect it to reach 1$ in 2018.
Who uses Ripple?
Until now, the entities that have shown the biggest interest in XRP are several banks, Google and Apple. Until now, 15 of the 50 largest banks in the world are already planning to integrate XRP in the near future. The main reason being the vast amount of money Ripple can save for those banks, thus, increasing their profit margins.
What are Ripple’s main features?
Similarly to other cryptocurrencies like Bitcoin, Ethereum, and Litecoin, Ripple is also structured as a decentralized network. This allows it to be a direct bank-to-bank settlement with no central operator.
Another interesting feature of this coin is the fact that it is interoperable. This means that it is able to connect traditional with emerging financial systems. This is extremely important because, in the case of bitcoin or ether, businesses need to make many changes to its payment process to start accepting those currencies.
It is also extremely fast in comparison to other blockchain assets. The average time it takes for an XRP payment to settle is around 4 seconds. In contrast, this number is 2 minutes for Ether, 1 hour with Bitcoin and between 3 and 5 days for traditional payment methods.
And finally, Ripple is extremely energy efficient. This is especially important for the near future where humanity will start transitioning to a more power-efficient world.
Should you buy ripple?
Definitely. Wouldn’t it be awesome to have bought Bitcoin or Ethereum when they were still trading at under 1$? Well, at least for now, you still have the chance to do this with XRP. At the time this post was written 1 XRP was trading at 0.27 $.
This cryptocurrency has the potential to completely revolutionize the banking industry as we know it so far. Unlike other coins, this one has already proved that its technology actually works. Therefore, as mentioned before, 15 of the 50 largest banks in the world already announced that they will start to use it very soon.
When that happens, the price will shoot to the moon.
What is the difference between ripple and bitcoin?
The main difference between bitcoin and ripple is the fact that BTC confirms transactions with the use of miners, while XRP cannot be mined.
This has the effect that Ripple is not vulnerable to a 51 % attack, and is, therefore, a lot safer than Bitcoin in that aspect.
Pascal Thellmann is an investor and marketer focused on the intersection of cryptocurrency and the legacy financial system. He co-founded Bounty0x, which at the time was the largest crypto freelance platform. Now Pascal dedicates his time to CoinDiligent and trading. You can get in touch with Pascal Thellmann on LinkedIn.