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Pros and cons of investing in XRP

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Despite all its troubles, XRP still remains as the third largest crypto per market cap, bested only by Bitcoin (BTC) itself, and Ethereum (ETH). As such, a lot of new investors believe that it is the perfect coin to buy. It is understandable why they would think so, after all, Ripple has a capable team behind it, it is the third largest coin, and it is cheap, being valued at $0.325557 per coin.

However, there is more to choosing the right coin than its position on the list and its price. In order to determine whether or not Ripple is truly a good investment, aspiring investors need to take an entire specter of different aspects into consideration. They have to pay attention to the coin’s use cases, its project, future plans, and more. Of course, not all of these things will always be the coin’s strong suit, which is why you often have to make a list of pros and cons, and then decide whether the coin is worth the risk or not.

With that in mind, we have prepared some of Ripple’s own pros and cons, in order to determine if it is really a good investment or not.

Ripple pros

1) Ripple (XRP) works and is ready for adoption

To start off in a positive mood, we will talk about the XRP protocol. It was piloted with Ripple’s xRapid product, and the results of the tests have shown that the solution is cheaper and faster than many others. It takes less than three minutes to complete a transaction, and it can save anywhere from 40%-70% in costs. Additionally, its network is highly scalable, and when all of these things are combined, they make for a well-oiled machine, ready to be adopted on a global level.

Ripple has made a goal to become capable of handling as many as 1500 TPS, which is significantly faster than what its biggest competitors in achieving better international payments can offer. Of course, Ripple continues to improve and new tests are being performed constantly. With such dedication, Ripple is getting better and better, as well as ever-closer to mass adoption and global acceptance.

2) Ripple partnerships

Many investors choose their coins according to the amount of trust that serious firms are putting into them. If the coin is not trusted by large firms who know what they are doing, then why would anyone else be willing to give it their money?

When it comes to Ripple, this is definitely something that the coin has taken care of. The number of financial institutions and major banks that have entered into a partnership with XRP is already huge, and the new ones are joining in almost every day. While these partnerships are a guarantee that Ripple is needed, and that it won’t just quietly disappear, they are also a strong indicator that the coin’s value will skyrocket once the proper conditions are met.

Obviously, the banks wouldn’t just enter a partnership with a coin that is no good. This confirms to us that Ripple as a product has a real value. While a lot of banks have joined Ripple already, they still remain relatively unsure about the whole cryptocurrency thing. However, they fully support the blockchain technology which is powering the token, and the two are a part of the same package, meaning that XRP is not going anywhere. The only thing left to do now is to enter even more partnerships and make Ripple even stronger than it already is.

3) Low price and decent stability

Despite the fact that many have accused Ripple of being centralized due to its design and the way it works, the coin has been pretty stable and reliable. This is what all the banks and financial institutions need in order to trust a crypto, especially now, when they are getting adopted while most are still chaotic in nature. This is what makes Ripple attractive since security lies in its stability.

Additionally, the coin is very cheap, as mentioned earlier. Investors can get multiple coins for less than $1, which makes this a perfect way to buy it. We have already discussed how Ripple’s price is expected to go up when the proper conditions arrive, so why not make a profit when that time comes? The coin has a lot of potential, and it can reach some very interesting heights.

Now that we have seen some of this crypto’s major pros, let’s also take a look at the other side of things, and check out some aspects that make investing in it a bit of a gamble.

Ripple cons

1) XRP use (still) doesn’t go outside of xRapid

As mentioned earlier, Ripple is mostly entering partnerships with banks and various financial institutions, and neither of these groups is too keen on using cryptocurrencies. This makes Ripple only usable on xRapid in order to provide liquidity when there is a need for it. So, even though Ripple is entering numerous partnerships, this still doesn’t mean much in terms of its use. It will mean the world when the banks finally start accepting cryptos as legitimate methods of payment, but that time has yet to arrive.

Add to this the competition of coins similar to Ripple that also share the similar goals, like Stellar (XLM), and it might even seem that Ripple is losing, even when it is winning. Not to mention the fact that a lot of banks out there have turned their backs on the coin, believing that they can create their own digital currencies instead. While there is a bright future ahead of XRP, there is still a long way to go before the coin can get there.

2) Regulatory uncertainty and controversy

Finally, it is time to talk about the controversy and regulatory gray zone surrounding the coin. For a long time, there was a real fear that Ripple will be proclaimed a security by the US SEC. Right now, it would seem that this danger is behind us and that Ripple can finally be considered a real cryptocurrency. However, there have been numerous lawsuits against its parent company, Ripple Labs, which claim that the company is controlling the coin and that XRP is centralized.

The company continued to deny these allegations on every occasion, and they even managed to win some of these battles. However, a lot of people still remain unconvinced of the coin’s decentralization, which is certainly slowing Ripple’s progress.

So, what does all of this mean in the end? Is Ripple a good investment or not?

Ripple seems to be a coin that does, actually have a future. While some of the controversies surrounding it are still there, it can be argued that the situation is much better now than it was several months ago. Basically, Ripple is keeping all of its qualities, while the negative aspects are slowly starting to go away. As such, Ripple does have a potential of being a good investment, although it is highly advisable to do your own research before making a final decision, or any real action.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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