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Is Stellar Growth a Threat to Ripple?

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Stellar Ripple
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Although Ripple and Stellar share many similarities, mainly both being developed by the same person, Jed McCaleb, founder of Edonkey, they are the outturn of very distinct mindsets. Ripple was born from a corporation, the OpenCoin, Stellar was born from a nonprofit, the Stellar Development Foundation, based on the Ripple Protocol.

Despite both being instant and almost free payment protocols through gateways envisioned by Jed McCaleb, Chris Larsen’s imprint on Ripple and Joyce Kim’s on Stellar led them through very different paths. The emergence of Satoshi’s solution for the double-spending problem, the Blockchain, was a big stunner for RipplePay as the company was eventually able to provide the service it always strived for, with a technology that was perfectly fit for it. From there on, Ripple started its path of partnerships with big names, with some distinctly supporting them in terms that weren’t publicly revealed (like Starbucks), while many others are adopting Ripple’s gateways, both internally and externally, including big names like Santander.

Currently, Ripple has countless gateways, including major banks and payments services. Stellar, unfortunately, has a few. But that has less to do with popularity and potential and more with what Stellar seems to be aiming for. They self-describe as a group which connects people to low-cost financial services to fight poverty and develops individual potential. This doesn’t impede them to also be adopted by corporations, like the giant Deloitte and IBM, which announced Stellar will be the backbone if its new “cross-border payment solution”, and promised is convening with big banking partners to adhere to it.

Ripple’s initial XRP distribution in 2013 was received with a good deal of criticism, as the founders retained 20% of the total supply, which was widely viewed as an exorbitant amount by the community. In contrast, Stellar distributed their initial tokens like this: 50% of people who signed up for an account, 25% gave to nonprofits, and 20% given to Bitcoin and… Ripple holders, as they felt Stellar owed a lot to these two systems, keeping only 5% for themselves to fund operations. Ripple’s advisory board of directors, which include names previously involved with government positions and big banks, is also often seen as reproachable by critics.

For those who are not sure about how gateways function in both systems: anyone can make use of both Stellar’s and Ripple’s API and declare themselves a gateway. The amount of (any currency you can think of) will be shown as <(balance), (name of the currency), (name of the gateway)>, for instance <100, USD, Santander>, and then users send or receive using the same gateway and currency, or even using different ones.

A community deprived of access to banking systems or one in which banking transaction costs are too high, having someone or some organization in whom they trust will take care of their funds (like a bank would), can function as a gateway for the community, and that person or organization can decide how much he would charge for the service, withdrawal conditions and so on. A university, for instance, can have their own community managed gateway and cast off their need to rely on external banking systems (or, at least, coexist with them, as an alternative).

At the same time Stellar Is being envisaged as a form of small or underprivileged organized communities to rely less on big banks and payment systems, Ripple, which in the beginning was seen as a threat for banks, is going in the direction of being a great solution implemented by… Big banks and payments systems.

We can expect, if everything goes right, a future where several local communities, and Stellar’s diverse team and advisory board seems to be strongly working on that, adopt Stellar as a reliable payment option, while Ripple maintain their partnership with big banks and payment systems as a much-needed replacement of the cumbersome SWIFT protocol. In this ideal future, Stellar would be leading in the number of gateways which trade smaller volumes, while Ripple would be mainly adopted by big corporations with larger volumes, both coexisting side-by-side.

There is nothing inherently bad in being a for-profit corporation, but this usually means that their decisions will tend (and they already do) to adapt to regulation and the “traditional economy” needs, which may impact its usability and, consequently, the outcome of investing on it. Stellar also has a nemesis in front of their objective, which is local government regulations around the world, whose bureaucracy may be too prohibitive for the implementation of new gateways. With that in mind, since Stellar is making efforts to being an alternative to traditional monetary transfer using traditional banks, especially in places which most need it, we can’t exactly correlate Ripple’s success to Stellar’s flop, and vice-versa.

And what that means to investors?

Besides speculation, we can expect Ripple and Stellar value to rise as more gateways are implemented and utilizing Ripple’s XRP and Stellar’s XLM as a middle currency, which is what they were both designed for. Stellar is making a big effort and has numerous success cases in bringing secure and efficient banking and payment solutions to places in the developing world, while still surprising their enthusiasts with partnerships like IBM. Ripple protocol is also used by many major banks, with an evergrowing number of smaller gateways.

Ripple’s market cap is the third among cryptocurrencies, Stellar is the 8th, but Stellar was released 2 years after Ripple. They both seem to be growing in market cap at the same rate: which is, as of today, the highest growth rate among the top 50 cryptos.

Source: https://coinmarketcap.com

This is the XRP/USD and XRP/BTC chart. Its price is significantly growing again after some stagnation and has finally hit the psychologically important $1 value, which usually means demand for the currency tends to increase, especially as the BTC rollercoaster ride starts to lose its speed.

Source: https://coinmarketcap.com

This is the XLM/USD and XLM/BTC price, both steadily growing too. Investors who bought this cryptocurrency in the short-term should probably be cheerful about its growth of more than 8%.

That said, both Stellar and Ripple are revolutionary platforms and their usability and partnerships will probably determine how high they’re growing. With so many announcements around both of them, especially Ripple with Starbucks and Stellar with IBM, besides the smaller projects, holding both coins is probably a good idea, as both are presumed to have a markedly blooming future, not only bullish but as dominant protocols for exchanging money and making payments.

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

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.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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Bitcoin crash
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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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