Ripple (XRP) is Not a Real Cryptocurrency. Here are some Facts to Note

Out of curiosity, I have done some background checks and discovered Ripple (XRP) is not a “real” cryptocurrency. Well, you might repute the fact but there is more in the coin and community that might surprise you into changing your mind.

For starters, Ripple is centralized and its coins are under a single authority; the company. This is a deliberate move to keep the coin price low to entice financial institutions to adopt. A higher price will mean less adoption making the currency irrelevant in the future. You will agree with me that they crypto-sphere is competitive.

The price has remained under a dollar for the better part of 2017 and rose to a short-lived high of $3.65 in January 4th around midday. However, many analysts argue that the price has remained below $1 owing to the prevailing market forces. I tend to think this is a trap for mass adoption; a healthy option for the long term investor.

Ripple and Ripple (XRP) Parting Point

With the current price, high adoption is very possible. To the banks, it is the right ecosystem to maximize on profits. However, you need to separate Ripple the company and Ripple (XRP) the native token or currency. These two are independent.

This simply means, Ripple is designed for the financial institutions. It is more beneficial to the bank than you as an investor. The fact is the only way one can benefit from Ripple is through the banking institution of your choice; you get faster transactions at near zero fee.

This means that price positions the XRP token for adoption. This is the entry point you need to take advantage of if you need to grow your digital currency portfolio. You need to understand Ripple is trying to interrupt the financial industry and give the consumer a say. You thus need to own some XRP coins and benefit!

One fact about Ripple is you cannot speculate its price. The coin is designed with stability in mind. If you own XRP coins, you need to come to terms with its nature. It is hard for you to equate a cryptocurrency that is centralized with decentralized ones. I always recommend a background check prior to investing in any crypto.

What is so Unique about Ripple?

With decentralized digital currencies, you cannot control the direction the price takes. You need to do this through a consensus.  A centralized systems’ price can be controlled irrespective of how well it is adopted.  Ripple is ranked third by market capitalization and not the price of XRP.

Given that Ripple (XRP) is under the control of a single entity, the price will not be swayed by mass adoption. With decentralized systems, their tokens are more valuable in the market; they are subject to the forces of supply and demand.

There a various new digital coins that have been adopted more that Ripple (XRP) and are currently trading above the $1 mark. A good example is Stellar Lumens (XLM) which is anticipated to bypass the $1 mark by the end of the year. With Lumens, you get the similar services with what Ripple offers.

Low priced digital coins are by default and if they take a while to grow, there is a problem or a future benefit. It is up to you to decide whether Ripple (XRP) is real cryptocurrency or not depending on your investment priorities. I would however, advice you when a coin is at the bleeding stage.

 

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