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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.

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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.

Bitcoin

Ethereum Flippening Bitcoin In 5 Years?

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Ethereum flippening Bitcoin
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The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:

  1. Congestion issues on the network
  2. ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
  3. Traders shorting ETH due to the above two reasons

Ethereum Flippening Bitcoin?

In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.

The full tweet from Weiss Ratings would go on to explain why this would happen:

“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…

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Bitcoin

Crypto News: What Happened To Bitcoin?

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The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.

For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.

Why the crazy move in Bitcoin?

There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.

The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.

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Bitcoin

XRP Rally Lifts Bitcoin and Ethereum

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XRP rally
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It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.

XRP Rally

The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.

Bitcoin

I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.

The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…

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