Promising to “do for money what the internet has done for information,” Ripple, a cryptocurrency that was announced to the world in 2012. It is designed to disrupt the traditional banking sectors in an extraordinary way. Ripple is not just a coin of value; it is a brilliant payment processing system as well, that is meant to take over the current incumbent system serving banks ever since 1973, the SWIFT system.
Ripple has already been adopted by numerous large banks, including Credit Agricole and UBS. According to the Royal Bank of Canada, Ripple’s XRP can save time and money for banks and financial institutions. Ripple, with or without its digital asset, can save banks an average of around 45 % per payment. The bank believes that blockchain addresses the pain points of the remittance industry by reducing cost, intermediaries, and by increasing transparency.
What is Ripple and What It Does?
Ripple is basically a payment protocol, it is both an open payment network, within which that currency is transferred, and also, it’s a digital currency (XRP). It is a distributed, open-source payments system. The intent of the ripple system, according to its official website, is to empower people to break free of the “walled boundaries” of traditional financial networks – i.e., banks, credit cards, PayPal and other financial institutions that restrict access with higher fees, charges for currency exchanges and caused unnecessary processing delays.
According to OpenCoin (renamed Ripple Labs in 2015), the company that invented ripple, the currency resolved the need to maintain the money flow free and transparent and more accessible. A company blog post with the title “Ripple and the Purpose of Money” gives a short history of fiat currency (mainstream money) as well as its transportability and indicates the disappointment with banks and other institutions hinder the transfer of money with higher transaction fees and unacceptable processing delays. The objective of Ripple, as it says, is to develop the decentralized digital currency approach set by its earliest cryptocurrency, Bitcoin, and “do for money what the internet did for all other forms of information.”
Popularity of Ripple
Due to the widespread adoption by public investors, big banks and large venture capitalists, Ripple is the third largest currency among other cryptocurrencies in the crypto world with enormous market capitalization at this moment, after Bitcoin and Ethereum. And at the time of writing this article:
- Ripple’s Token Price: USD $0.539.
- Market Capital: $22,953,732,824 USD
- Volume: More than USD $1.03 billion (Exact figure is: $1,304,521,867 USD)
- The Circulating Supply: 39,935,410,492 XRP
- Total Supply: 99,991,826,231 XRP
- Supply Limit: 100,000,000,000 XRP
The XRP (a brief version of Ripple) token has been questioned on various cases. Recently, the token made headlines in mainstream media what appears like an uncertainty related to its real-life uses, the controversy surrounding Ripple, the usefulness of its token and its marketing has been discussed in detail since the price hit an all-time high of over $3.50 in early January of 2018, after rumors that XRP would be listed on Coinbase, and CNBC posted step-by-step guide for retail investors to buy ripple.
What Made Ripple Powerful and Extraordinary?
According to Global Coin Report, the coin has both pros and cons, which investors need to ponder upon before making significant investments. Here’s a quick look at what they perceived as the pros and cons of XRP.
- Ripple uses a unique consensus protocol, rather than proof of work or proof of stake, that is far more scalable than Bitcoin or Ethereum. While a single transaction on the Bitcoin network may take almost an hour to process, the exact same transaction on the Ripple network will be completed in a fraction of second.
- Ripple’s beauty lies in its ability to renovate an old method for modern purposes. In fact, Ripple bank on a system for its payment processing that is important to the Medieval process of “Hoondi” or “Hawala,” (a traditional system of transferring money used in Arab countries and South Asia, where the money is paid to an agent who then instructs a subordinate in the relevant country to pay the end receiver).
- What is even more fascinating is that the Ripple network is able to trade any asset with any other asset. Subsequently, just as two people dealing in two different currencies can intermingle through the Ripple network flawlessly. Think about it! Two people are holding an entirely different class of asset, let’s say gold and agricultural products, can conduct trade on the spot, as long as there are mediators who are willing to help this transaction.
- You should concern about the costs of all these transactions, right? After all, a network that can allow you to trade in any asset class, at a matter of a second, so it should obviously cost near a fortune, right? But naturally, transaction costs are incredibly minimal, and they are incurred only to stop someone from spamming the network.
- Remarkably, the money subtracted during every transaction is demolished altogether. But don’t worry, thanks to the total volume of Ripple coins that will be distributed is valued at 100 billion dollars, so losing a fraction of a fraction of that during every transaction is an extremely tiny price to pay.
- Another beauty of Ripple is its partnerships. Most of them are with various financial institutions. This makes sense of increased confidence and trust in the XRP token since the current crypto market has been declined with frequent price fluctuations, cheaters and theft, etc.
What Made Ripple Risky and Controversial?
- Global Coin Report concerned with the limited usage of Ripple and regulatory issues – these are can be the most challenging.
- The problem of interactions between a user and the system (it’s called “use case” in Computer Science) appears to be coming up over and over again for Ripple, and as said by the report, whether it be Ripple’s Xcurrent or xRapid products, none of these has successfully provided strong use cases yet.
- Actually, the case involves Ripple’s several partnerships, as its growths could not bring newer use cases. Moreover, given more competition emerging in the crypto sphere, Ripple’s competitive edge might simply become extinct.
- Bitcoin Exchange Guide reported earlier, Ripple Labs, the parent company, has since been faced with quite a few lawsuits for manipulating tokens. Likewise, the U.S Securities and Exchange Commission (SEC)’s classification of cryptocurrencies had XRP in a sticky condition for a long time. But still, we hope that Ripple’s accusation of improved control will gradually be resolved, as the payment systems provider has been making the required steps to make a more decentralized system.
Ripple XRP Price Prediction
Ripple XRP Price Prediction 2018
Predicting Ripple’s price for 2018 is a very complicated job to perform. And it is a very sensitive number game as always, and a lot of it is notional. Ripple’s current market cap is almost $2.3b as I already said. But where this large capitalization will go from here eventually, that is up to anyone to predict. Nevertheless, I made a few refined Ripple price predictions for 2018 based on the information I have today.
Most of the cryptocurrency specialists believe that Ripple will reach new heights and make new peaks too. For this reason, many of the cryptocurrency experts think that it could be a great investment opportunity.
Ripple is steadily accumulating new clients. Just not that, but marquee name clients and banks all over the entire world. Moreover, many financial institutions, including even banks, has also started adopting the Ripple protocol. With a view to transferring fund from one part of the globe to another more easily and transparently. In fact, that’s one of the reasons why Ripple is a bit underrated at this moment. If it keeps adding newer and newer clients to its system, Ripple will most possibly be able to increase its value as well market cap significantly in the coming future.
Ripple XRP Price Prediction 2020 and Beyond
Ripple Coin News forecasts that the crypto could climb to about $7-$10 by the begging of next year, 2019. Though, the Economy Forecast Agency has predicted that the coin’s price will fall by the end of 2020 because of “technology partnerships not fulfilling the promise.”
As per Smartereum, experts are confident of Ripple could rise to as high as $250-$350 by the next decade. Megacryptoprice estimates that the coin will hit almost $7 by the first quarter of 2020. According to the recent predictions investors involved in the business claim that Ripple price prediction in 2030 can be around $400-500. Imagine the volume of money you can make with the current investments!
Ripple XRP price prediction depends on a myriad of factors, for example, the amalgamation of the system into banks and other financial institutions, the market cap of the currency, technical development and the quality of updates, and mindset of people to invest. Usually, XRP Ripple price prediction is a tricky question to answer, so at the end of the day, it’s totally up to you to make an informed decision about your investment.
Ripple Price / XRP to USD
The XRP/USD is currently (at the time of writing this article) exchanging at @ $0.539. Among the three Crypto leaders in the market, now it is the Ripple’s turn to get leg behind. Though Ripple remained ahead due to strong increases last week, for now, it misses the chance to continue improving.
Beyond the current price, the first resistance is at $0.55. So, a second resistance line is at $0.583 (price congestion resistance) and the third resistance level at $0.60, a key support level that did not manage to close above on the 4H chart in the recent rise.
Some Key Methods of Predicting Ripple Price Movements
Predicting price trend of anything traded at an exchange rate that is changing so frequently, is a very complex, tough and risky game – someone could be right sometimes, but no one can be completely accurate all the time. Many traders have lost piles of money, if not their life savings, into such attempts. No one can guarantee the future prices of Ripple, but you can try to ‘guess’ it by following some of the methods described below.
Fundamental and Technical Analysis
The two of the primary methods of predicting price movement are fundamental and technical analysis. While fundamental analysis considers the underlying forces of an economy or a company. Technical analysis tries to determine the direction of prices based on previous market data, primarily historical prices, and volumes found on price charts. Investors’ emotional responses to price movements lead to identifiable price chart outlines. Technical analysts also evaluate historical trends to predict future price development.
A Bollinger Band® is a set of lines usually plotted two standard deviations away from a simple moving average of the Ripple’s price. But you can always adjust your preferences. Bollinger Bands® is a highly popular and widely used technique. Many traders believe the closer the prices move to the upper band, the more overbought the market, and the vice versa.
Read Experienced Crypto People’s Comments
Cryptocurrency market caps are growing super-fast. But still, it is too unstable and devious. People are just following each other’s action. (Some people buy it randomly or based on a Reddit post). So, if it is the case, it might be a wiser step to follow some experienced cryptocurrency guys and just follow their recommendations.
You can follow the man ‘’John McAfee’’ on Twitter, he has more than 500K followers, but I personally follow the guy from tradingview.com, named DLavrov, and he makes the most accurate overview as per my observation.
Read the Crypto News!
Don’t think it’s unnecessary. If possible, you would always want to be the first people to know if Trump declares something like he is going to delete cryptocurrency from Earth. You might find some useful mobile apps for the crypto news as well, the good thing is, they even send you notifications on your screen if something big happens.
Read the Source Code
Reading or writing programming code is not everyone’s cup of tea, but that’s not rocket science either. The stronger their source code, the powerful the coins are. So, you may want to know how strong their core and security code. If you have a Computer Science background, then it’s a piece of cake for you, but if you haven’t, then a friend or someone from the same background or skilled in coding can help you out.
Learn Which Coin Is Doing What
Every coin is different in nature and features. Some of them provide with decentralized internet access. Some of them work as quick money transfer system from a mobile device. So you better know your coin better! Know what you are financing into. Cross-check with your opinions. If you don’t have trust in digital currency or technology, then don’t go with the crypto-trends with your eyes closed.
Ripple VS. Ethereum VS. Bitcoin Comparison
All these three are cryptocurrencies that fueled on powerful blockchain technology. And all blockchains have their own unique digital coin, but still, there are some strong differences to keep in mind.
One of the most important features to the Ripple vs. Ethereum VS. Bitcoin dispute regards scalability. Bitcoin can only process one transaction in 60 minutes (the longest time for processing a transaction in the crypto world), and Ethereum can process 15 transactions in a second. While Ripple XRP can actually process about 1,500 transactions in a second, which is way too more than both Ethereum and Bitcoin!
Transaction fees are also impossibly lower in the Ripple blockchain. There is a typical fee of 0.00001 XRP for each transaction. That actually means it’s almost free!
The core team running the Ethereum project is the Ethereum Foundation, consists of a group of highly skilled and expert developers. The Foundation gives support for promoting, developing, maintaining and teaching people about the Ethereum platform. It’s an open-sourced platform and Vitalik Buterin, the original founder of Ethereum, is the leader of this team.
While Ripple XRP is slightly different. Parent company Ripple Labs manage it. It has the ability to make changes to the underlying technology. San Francisco is the home of Ripple Labs, and they are the ones that form partnerships with the financial industry. The main face of Ripple is Brad Garlinghouse, the organizations’ CEO, very familiar personality thanks to his public appearance on live TV shows.
Ethereum, Bitcoin and Ripple XRP have shown outstanding performance since they were first launched in the market. But the most significant thing to notice is that they are not competing with each other. While Bitcoin is aiming to be the alternative of fiat money and Ethereum is concerned with smart contracts, Ripple is just targeting the banking industry to transfer payments.
One of the top 10 coins in the market is Ripple’s XRP. Competing with Ethereum, Litecoin, and Dash for the second place in the market share. Ripple is the cryptocurrency that promises to shake the banking industry to its core. Please note, it briefly overtook Ethereum and become number two in the rank in January 2018.
You might be wondering is it worth investing? Well, Certainly yes! But you should go a bit deeper about Ripple coin price prediction before you make a well-informed decision.
Ripple’s partnership has grimaced upon with financial institutions. For example, by crypto investors, namely because of a centralized system. Additionally, enlarged partnerships do not necessarily mean user adoption. As TRON also established multiple alliances only to see its token price stagnated.
The one point that is to consider both a positive and negative here is that of user adoption. That is, Ripple does have useful products. But whether they are enough is the big question to consider.
Some renowned analysts expressed that, Ripple will be bigger than bitcoin once its price hits $7.
Wrapping It up…
Ripple is a promising cryptocurrency that is showing heaps of potential since its first market appearance in 2012. Like other digital coins, its price has been experiencing some volatility issue too. But if you compare this with what Bitcoin has been going through lately. Ripple’s scenario would seem nothing to you.
With its reliable infrastructure and advanced technology, Ripple is likely to get over several other cryptocurrencies. If it can just hold the current market cap. The room for improvement is pretty high. And once mainstream banks adopt this technology as quite a few experts are expecting, the sky is the limit for this token.
When you take a closer look at a few signs of progress. You will assuredly realize that XRP is one of the most attractive cryptocurrencies now. This evidently specifies that the usage of XRP is going to upsurge in the future. And the price of ripple would also increase along with it. That enables the users to gain a good amount of return by investing in Ripple/XRP.