Is Ripple Worth Investing In? Yes, It Is

Ripple may not be a cryptocurrency that you’ve heard of, but it’s currently the 3rd most valuable one. That probably surprises you, but it’s unlike other blockchain-based cryptocurrencies – it’s not actually a blockchain crypto at all. Yet despite this, well-known banks like Santander and wealth managers such as UBS are using the Ripple network to trade world currencies.

Current Market Capitalisation

At the time of writing, Bitcoin is the most valuable token-based cryptocurrency being priced at $10,005.60 with a total market capitalization of $168,772,829,887 (Bitcoin Cash sits as the fourth most valuable token-based cryptocurrency currently at $25,603,940,125). By comparison, Ripple is 3rd with a $1.12    price and a market capitalisation of $43,869,374,039.

It currently has approximately half the capitalisation of Ethereum and roughly 3.5 times less than the original Bitcoin cryptocurrency valuation.

How Ripple Shapes Up Compared to Bitcoin, etc.

Ripple has a company behind it. The founders created 100 billion Ripple tokens when it was issued. Forty percent were released, and 60 percent are held in escrow by the founders at the present time. Early on, major venture capitalists provided early funding including Google Ventures from Alphabet. Inc.

Unlike Bitcoin, Ripple is centrally controlled and managed. It does use multiple distributed servers that maintain a record of all transactions and clarify and correct errors. A continual process to verify transactions is ongoing. Sophisticated users like banks and wealth managers are either researching or already involved in using the Ripple network to exchange currencies in real-time without the need to use SWIFT to lower costs. SWIFT requires an open checking account in every country that transfers will be needed for banks using the system, a requirement that doesn’t exist with Ripple.

One major difference with Ripple is that the banks don’t have to buy the XRP token to use the network to trade currencies. Because of this difference, larger players are interested in using Ripple in ways that perhaps Bitcoin is not best suited to.

Buying Ripple for Yourself

For consumers, buying Ripple cryptocurrency involves acquiring the XRP token. This can be done as a form of cash saving to diversify away from variable fiat currencies or as another type of savings or investment. Acquiring Ripple is not difficult – find how out how to buy it here.

The transaction costs tend to be lower with Ripple. It’s also cheaply priced compared to many other cryptocurrencies, so you are not forced to buy large amounts to get involved either. The cryptocurrency is the least known, most valuable one which is an interesting distinction. This is largely because consumers have been focused elsewhere and only switched their focus away from overvalued currencies when the benefits of owning cryptocurrencies as part of a diversified portfolio became more obvious. Banks are already involved and enthusiastic about the future of Ripple.

Buying into Ripple is an interesting prospect for people who believe Bitcoin is overvalued and ripe to fall more in price. It’s also got institutional backing and serious venture capitalists behind it too, so it’s a major cryptocurrency for people with a bit of know-how.

 

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