Investors Feel Ripple (XRP) A Better Choice. Here is Why?
The astronomical rise of bitcoin over the past few months have cooled down these past few days, with the currency falling a third in value after reaching record highs making investors nervous and worried.
This had led to another digital currency drawn up to replace bitcoin. That crypto is Ripple (XRP).
The team behind the development of ripple aim to convert any fiat currency or cryptocurrency to another form within seconds.
This development is going to take through via the traditional financial institutions and not retail transaction units like PayPal. At the moment, Ripple is the fourth largest crypto with a market value of roughly $43 billion.
On the 22nd this month, the price of Ripple’s (XRP) token surged above the $1 mark, to trade at $1.37 even though it has retracted to $0.98.
The increase in price action is significant considering it was trading at $0.24 at the beginning of December. Its price surge represents an increase of 470%. Taking a look at its price action so far this year, it has risen over 1700% from its initial worth of $0.006.
The surge in ripple price is majorly driven by the increase in the value of other cryptos like bitcoin (BTC), ethereum (ETH), Litecoin (LTC), and bitcoin cash (BCH). The second major reason is the speculation that popular trading platform Coinbase would initiate trading of the tokens, even though it hasn’t happened yet.
Just like any crypto investment, ripple investment doesn’t guarantee that you will make a profit, with financial experts across the globe tagging it as a gamble because their values cannot be predicted.
Supporters of ripple are currently arguing that the digital coins are the bridge between the old financial system and the new, making it the cryptocurrency that can be used for financial transaction due to its greater stability, speed, and security.
Several financial institutions across the world have shown interest in Ripple’s technology. The currency’s finance and tech experts are making partners with big financial companies in the world, their recent deal with American Express indicating that the team aims to secure the growth of ripple (XRP).
The team which was founded five years ago has offices operating in San Francisco, Sydney, India, Singapore, and Luxembourg. It trades over 50 cryptos on its platform and aims to keep growing in that sector.
Analysts and commentators in Asia reported that traders in the continent are currently going crazy for ripple.
Trevor Koverko, chief executive of Polymath, told Forbes that “People feel comfortable with its name and the technology behind Ripple (XRP). A lot of people are beginning to realize how big of an opportunity there is between business and the blockchain…and that’s making ripple the early winner here.”