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Why is xRapid not bringing XRP price up?

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Have you ever heard about Adam Smith? Have you read his book “The Wealth of Nations? You should. This is the guy who invented Economics. He invented the idea that markets find a way to regulate themselves through supply and demand. But one thing Smith never said was that markets were rational. They’re not. Rumors, fear, momentary impulse govern them, and this is what happens with the crypto markets right now, especially with Ripple’s XRP.

Let’s review XRP’s price recent history briefly

Ripple’s yearly Swell conference started last Monday and, on the two previous weeks, the price went up. Nobody knew anything, but this is an example of speculative investors buying into rumors, trying to get into the action early before anybody else does. What happened next?

Well, Swell happened next and, while it was supposed to be a low key conference, it turned out a big announcement. Namely, that xRapid is, at last on production stage, with three partners who are already using it to settle their international money transfers.

Those were great news. And what happened next? XRP’s price went down. Let’s dig a little deeper.

Cryptocurrencies, like any other commodities or resources, can grow in value because of two reasons: they can either be useful, or speculators could be interested in them. This is Economics 101. At this point, very few crypto-coins are helpful in the real world. That means that their value is dictated by speculative pressure, mainly.

Ripple is in a transient period. It is turning into a project (and a token) that is becoming useful in the real world because banks, remittance services, and financial institutions are slowly (but surely) adopting both the platform and the coin. But the process is only beginning so speculative pressure is still very strong and it’s holding the token’s value back.

So if xRapid is finally in production, then why is the token’s price going down?

Because it’s started with three users only, which are not very big at that. But if things work well for them, other banks (bigger banks) will also adopt xRapid (Banco Santander already has another of Ripple’s platforms in production), and that will create a much bigger demand for XRP. Not because of trade in exchanges but because it’s a useful coin that solves problems for real people.

The one thing you need to know about XRP’s value is this: it’s not a sprint race; it’s a Marathon. But Ripple technology and the token have proven to be helpful for many businesses the world over so they are sure to gain more users.

And with more users, there will be a higher trade volume that will drive the coin’s price up because of usefulness, and not because of sheer speculation. Keep in mind that even Stellar Lumens and LiteCoin have seen Ripple’s project and followed suit, because they know that taking a cryptocurrency mainstream is the one thing that can make it valuable in the market, bypassing speculative measures.

This is not a time to be fooled by what’s happened this last week (XRP is down by more than 6% even during the previous 24 hours). It’s instead a time to think long-term, and there are many good long-term bets in the cryptosphere. Tron, Stellar, Bitcoin (surprise!), Cardano and a few others, but among them, there is Ripple.

Don’t worry about the current market. As I stated before, it’s irrational. Be rational and outdo the market. Not this week. Just think long-term. Is the market terrible right now? No, it’s not awful. It’s cheap. It’s probably the right time to buy. But don’t take our word. Do your own research, reach your own conclusions and never put in the crypto market money that you can’t afford to lose.

For the global insights every crypto trader must have, apply for Elite membership!

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

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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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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