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Here’s How Ripple (XRP) Can Get To $100

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What a year Ripple (XRP) has had. At the end of the week last week, the coin rose more than 50%, to a record market capitalization of $85 billion. At the start of play on Tuesday, this has risen slightly higher to just shy of $96 billion (having briefly topped out above $100 billion over the weekend).

When you look back over the year, this translated to overarching gains of more than 35,000%. In contrast, bitcoin (BTC) and Ethereum (ETH) have risen just 1,400% and 9,000% respectively. While the latter two have dominated headlines in mainstream media, therefore, it’s Ripple that’s really been the runaway winner.

The question now, of course, is can things continue like this?

Well, here’s where things get a little complicated.

The thing is, there’s a degree of disconnect between XRP and Ripple, the company, and it’s platform Ripple Net. The latter is a platform created by Ripple that allows banks to transfer currency cross-border and between one another practically instantly and for a much lower fee than is currently required. To make a comparison to current fiat systems, it’s designed to essentially replace the SWIFT system.

XRP Daily Chart

XRP Daily Chart

It works great and it’s being taken on very quickly (mostly as part of pilot programs) by some of the biggest names in the financial world – Bank of America, RBC and UBS, as well as a consortium of big-name Japanese banks.

So that’s all good but it doesn’t guarantee that we will see a concurrent rise in price in XRP. For the banks using the Ripple Net platform, the only part of the transactions process that requires XRP is the fees associated with the network.

This means that XRP use and (by proxy) acquisition should increase as the platform becomes more mainstream but the XRP used for fees is relatively low, so it’s not going to be what drives this coin to $100, $500 and beyond.

That’s not to say it won’t get there, however.

The Ripple Net platform is designed to integrate seamlessly with XRP. So, while banks can essentially use any form of crypto to act as a bridge between two types of fiat on either side of a transaction, XRP is as good, if not better, than all of the alternatives.

What it looks like Ripple is doing right now is going at the banks with a sort of two-stage proposal. First, adopt the Ripple Net platform as the basis of your cross-border exchange transactions. Then, adopt XRP as the bridge currency that facilitates the transactions. If the banks are using the Ripple Net platform and they subsequently have to decide on a crypto token to serve as bridge, it makes sense for them to use XRP, but it’s not guaranteed. We know that banks aren’t always (if ever) sensible in the way they adopt and employ technological advance.

So, that’s where the speculative element of a position in XRP is rooted. If the company can persuade the banks to use XRP as a bridge, we could be looking at $100 or more before the end of the year, perhaps sooner.

If not, we’re still going to see an increase in price (as banks buy up XRP to meet transaction fees on their cross-border payments), but it may be a little tamer than would otherwise be the case if banks go all in on Ripple Net platform and the underlying XRP bridge.

Bottom line – there’s still plenty of run room left here, the only question is how far things can run and how soon it happens. And this question is to be decided by the big banks.

We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency

 


Image courtesy of Ripple.

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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