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Is Ripple (XRP) a digital fiat or cryptocurrency? - Global Coin Report
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Is Ripple (XRP) a digital fiat or cryptocurrency?

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Ripple XRP
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The debate on whether Ripple (XRP) is a security or not still lingers. However, Ripple (XRP) is still on a ‘regulatory limbo,’ and most investors aren’t sure on whether to invest on it or not – since the fate of the digital coin hasn’t been decided yet.

At the moment, another debate has surfaced, and that is if Ripple is a digital fiat or a cryptocurrency. On the other hand, SEC hasn’t issued any statement yet on whether XRP is a security or not.

Recently, Anatoly Castella, the CEO of Elpis Investment claimed that XRP is not a cryptocurrency, rather, it is a digital fiat. Castella mentioned further that XRP does not follow the “purest interpretation of a cryptocurrency.” Castella also added this:

Ripple resembles a FinTech platform combining the best elements of fiat money and blockchain cryptocurrency. It is ‘Digital Fiat,’ not a cryptocurrency.”

Castella mentioned the fault of Ripple technology and said that the technology is not up to the standards of other cryptos like Bitcoin and Ethereum. He also stated that Bitcoin and Ethereum are a store of value asset while XRP is a digital fiat supplied by Ripple.

Is Ripple’s XRP a cryptocurrency?

A cryptocurrency is a form of digital currency that exists digitally and usually has no central regulatory authority but alternatively, makes use of a decentralized system to record transactions and manage the insurance of new units, and relies on cryptography to prevent counterfeiting and fraudulent transactions, according to the Webster Dictionary.

We do know that Ripple is a digital currency and that it has no central regulatory authority; Brad Garlinghouse cleared the air about the argument on if Ripple controls XRP or not. Ripple doesn’t own XRP; it cannot create XRP; instead, it only issues the XRP it has. It is important to know that if Ripple cuts off its operations and decides to stop, that won’t affect XRP in any way. XRP can function without Ripple because both of them are separate entities.

Contrarily, SEC Chairman Jay Clayton made a statement in June to CNBC on if a digital currency is a security or not.

Cryptocurrencies: These are replacements for sovereign currencies to replace the dollar, the Euro, the Yen with Bitcoin. That type of cryptocurrency is Bitcoin.”

There is so much to ponder on the statement made by Clayton; taking a looking at Bitcoin here, BTC transactions are very costly and if Bitcoin is used to replace the dollar or yen, etc., then why can’t a chunk of gold be used to buy goods in storehouses supermarkets. It is noteworthy to know that there is still a debate on if BTC is used as a store of value or for transactions.

Final Words

No matter how aggressive the debate is on if Ripple is a digital fiat or a cryptocurrency, one thing is clear, Ripple and XRP aim to change the financial system of the world and will help developing countries who don’t have the adequate infrastructures for money transactions. The vision of Ripple and XRP will change millions of lives and surely, that will make it prevail for long, it is not just hot air.

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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.

Image courtesy of Maxpixel.net

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Bitcoin, Litecoin, Ethereum, and Ripple On the Rise

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The recent development in the cryptocurrency industry is a rise in price for many of the core digital coins. We believe that the unexpected price hike is due to the renewed interest of the key players in the industry. Many investors, speculators, and traders are rushing into the number one cryptocurrency; Bitcoin like never before. Other altcoins such as Ethereum, Ripple, and Litecoin are not dormant either. The effect of the influx is the soaring prices of the digital coins within seven days.

The price of the crypto leading giant-Bitcoin has increased at 25.74 percent in one week. Ethereum also gained 18.76 percent increase in its price. Litecoin and Ripple also recorded some percentage increase in the tune of 53.20 percent and 16.12 percent respectively. It is no just these few popular coins that have gained in one week. From what we have gathered, 94 digital coins amongst the leading 100 cryptocurrencies are also experiencing the rise in price. This information is according to what TradingView published in April 2019.

According to them also, other cryptocurrencies gained in value while others declined. From their calculations, six digital currencies advanced while ninety-four was on the decline. Also, another information shows that the increase in Bitcoin price has reduced the value of other assets such as bonds and stocks.

The possible reason for the rally

Many people are wondering…

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Crypto Market is Not Free from the Bearish Trend Yet

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Investors and traders are still speculating over the bullish trend that shook the market this past seven days. However, amidst the joy of the price hike in the industry, some people are still cautious. A crypto trader with the twitter handle of BTC_Macro is advising other players in his tweet to be careful. According to him, the bearish cryptocurrency market is not over yet.

In the tweet, the user admonished players in the market not to listen to the people saying that the bears have given up. It went further to say that Bitcoin may still plunge uncontrollably anytime even if it breaks the $6K mark. When this occurs the twitter user continues, any scenario may occur. The advice is that players in the crypto market should be on the neutral side. According to the user, it is not safe to be on the bullish side or the bearish side. Instead, players should be on their toes without bias.

How Trader reacts to price movements

Over time, it has become evident that many traders usually go against the market majority during bearish or bullish trends. Well, there is usually some logic backing up the reactions.

It is true that we have seen the longest bearish trend in the history of cryptocurrencies. Everybody who has a stake in the crypto market is expecting the day of the bull’s rise…

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The Interoperability Problem of Blockchain May Soon Be Over

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Kardiachain
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Crypto traders have certainly had a rough time since early 2018. The markets have tanked resulting in large losses for nearly everyone involved in the market. While that’s bad, what’s even worse is the fact that many projects have failed to deliver on their roadmap. Blockchain technology has been hailed as the next great advance in technology. And while many companies are making strides toward fully implementing blockchain-based technology, there is still a long way to go. As promising as blockchain technology is, there are still limitations that need to be addressed.

Limitations of Blockchain Networks

Although blockchain technology is certainly the future, the existing technology will need to be improved before it can go mainstream.  A few of the current limitations include:

  • Limited Scalability – Blockchain networks have consensus mechanisms that require each node to verify a transaction. This verification requirement slows down the network and limits the total number of transactions that can be processed.
  • Limited Usage – Each blockchain network was created with specific usage in mind. Because of the limited number of use-cases, each network eventually suffers from a never-ending loop of limited adoption. In the end, this causes low awareness.
  • Lack of Interoperability – At present, individual blockchain ecosystems are unable to communicate with each other. If a blockchain network attempts to retrieve information from an external (outside the “chain”) source, each node would have to…
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