How Ripple (XRP) and other cryptos are going to be public debt solution

As a cryptocurrency and a blockchain technology, Ripple (XRP) seems to have a distinct cutting edge over other virtual currencies that include Bitcoin, the widely known and leading digital asset. The space of virtual currencies is essentially a wild and fast-paced market that is responsible for over one thousand different virtual coins that are all competing for market-share and trying to become the preferred and relevant digital coin in the future of virtual currency trade.

Among the reasons that make Ripple (XRP) standout from the crypto crowd is its superior design and development that makes it a big winner at the end of the day. Going by the speculations and calculations of crypto enthusiasts, Ripple (XRP) might surpass Ethereum in regards to market capitalization, if it manages to sustain its growth and adoption momentum around the globe.

Thanks to Ripple’s Default Currency, XRP, different financial institutions in the world can quickly process transactions regardless of the geographical area difference at inexpensive costs.

Why Ripple (XRP) as a Digital Asset Might Be a Big Winner

Ripple is the official company name that is responsible for the development and control of XRP virtual currency. Unlike many other digital currencies, Ripple’s default currency, XRP, is designed to be distributed by Ripple Labs to market contributors, rather than being mined and created by individuals who are also referred to as miners.

Ripple has taken a very dissimilar approach with its default currency in comparison to most cryptocurrencies. For instance, Ripple did not create XRP as a way for individuals to circumvent the financial and banking sector.

Instead, XRP has been developed and designed in such a way it integrates with current banking systems with the idea to serve its clients in a fast and inexpensive manner in processing commercial payments and currency exchanges regardless of geographical topography.

While the Ripple approach might be heavily criticized by some quarters of cryptocurrency faithful’s, who would like to use virtual currencies as an alternative to fiat and traditional banking systems, it is this very reason that makes XRP stand out and potentially become a big winner in the crypto space.

Now with the increasing demand for instant international money transfer services on the rise, Ripple (XRP) is continuously proving to the world that all hope is not lost. Money transfer services using the Ripple technology have significantly reduced the transaction cost they used to incur by over 70% in a process that has been simplified to take minutes instead of the traditional days or weeks timeline.

Ripple and Cryptocurrency as the Answer to Global Debt

According to a recent report that was released by International Monetary Fund, the global debt has risen to high levels of more than $170 trillion US dollars opening the door to a potentially catastrophic financial recession if nations fail to repay their debts due to the current hard financial conditions.

In April, IMF warned in their semi-annual fiscal report, that the global public debt had ballooned to over 220% of the global gross domestic product. All the reports on the state of global public debt are alarming and shocking at the very least, but thanks to Ripple’s XRP and other cryptocurrencies, the world can rest safe knowing there is an answer to the debt problem that might lead to a great recession like the one witnessed in 2007.

Due to Ripple’s and cryptocurrency’s nature of being genuinely peer-to-peer, decentralized, and not controlled by any central government or body, cryptocurrencies cannot be artificially inflated or taxed. Given that the value of cryptocurrencies is derived from the participation of its users and the laws of demand and supply, their currency supply’s are not intentionally influenced, so errant traditional currency policies can devalue services that are compensated in Ripple.

For the latest cryptocurrency news, join our Telegram!

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 thorough research before investing in any cryptocurrency and read our full disclaimer.

Photo by Freddie Collins on Unsplash