A few years ago, the concept of online currency was nothing more than theories until the arrival of Bitcoin. Together with decentralization and blockchain technology, the world witness birth of next-generation finance that works without banks or governments. Quickly numerous currencies were introduced in the market within a few years to benefit from the surge in demand for Cryptocurrencies. One of them was XRP, currently traded on the majority of Cryptocurrency exchanges and have a market capitalization worth millions of dollar.
Ripple is a virtual currency providing security and legitimacy to international transactions. It is a platform designed to make the process of transactions easier and safer. The system works similarly to Blockchain but differs greatly in the control and authority of the network. Unlike other online currencies, XRP is owned by a single company, Ripple, and is not mined.
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Is Ripple a Good Investment?
According to several popular opinions, Bitcoin mining is flawed and needs an upgrade. For reasons including scalability and block generating time, many people argue that using Bitcoin might be difficult if price and demand continue to increase. XRP has a solution for both of these problems, and provide near-instant cross border transactions. Here are the top reasons why XRP is a good investment for the future.
It is an Affordable Option
Ripple (XRP) is worth a few cents, making it comparatively cheaper than other cryptocurrencies and easy to accumulate. Additionally, it can bring a lot of appreciation to your investment in a bullish market and continues to dominate the market capitalization just after Bitcoin and Ethereum.
Low Transactions Fees
One of the biggest obstacles for many Cryptocurrencies is high transaction fees; however, this is not the case with Ripple. To transfer XRP to another account, it usually takes less than 20 cents, one of the cheapest in industry. The low transaction fee is what makes XRP a good investment and appealing for investors. For this reason, banks have also collaborated with Ripple Labs, the developer of the Ripple Payment Protocol, to allow for faster and cheaper international transactions.
One of the best things about Ripple is the technology developed by the company, which is pretty promising. The system is created to be secure and to process information and transactions at a record-breaking speed. The ripple protocol process an estimated 1500 transactions in a second, which is a hundred times faster than many other crypto platforms. Although, this has been made possible by centrally controlling the network, which cast doubts among some users.
The Public Representation Keeps Rising
Ripple is a good investment because of its history of public representation and investor awareness. It is one of the top three Cryptocurrencies by market capitalization, and investors predict it as the currency of the future. Ripple has created a personal public relations team that allows the company to improve its image among investors and customers.
Large Market Capital Owned by Ripple Labs
When investing in XRP, it is important to consider the history of market capitalization and performance. Even though many people may not consider this, it is an important factor when it comes to making an investment decision. XRP has a large market which presents a certainty that the company will be successful in the future. Many Crypto enthusiasts state that a cryptocurrency must have a considerable market standing to prove its worth and feasibility of its existence.
The Bank’s Favorite Crypto
For a cryptocurrency project to succeed, it needs to have good links with government organizations and financial institutions. Even though Bitcoin was made to decentralize the financial industry, people need banks and regulations to protect their money. Ripple is very popular with many banks, and many of them are already using it to cut costs and provider safer, convenient, and faster transactions to users.
Unlike other cryptocurrencies, XRP is owned by a single company known as Ripple Labs and has its own advantages. In other words, it requires less cost and equipment to operate the network, since there is no need to invest in ASIC miners and electricity to secure the network.
What differentiates Ripple from other cryptocurrencies is its versatility. The XRP allows a link to be established between different fiat currencies and platforms, which makes it more feasible to make transactions all over the globe. Ripple can collaborate with other payment systems, making it a good investment opportunity for 2020. After significant efforts, the company has also come into collaboration with numerous institutions improving its reach and satisfying the investor’s appetite.
XRP is one of the most efficient and reliable payment systems in the world, particularly in cryptocurrency space. The speed is incomparable to many decentralized currencies, and the rising demand and acceptance add to its value. The use of Cryptocurrency is continuously rising due to the speculations linked to its future. However, as there are so many virtual currencies available, making it confusing for users to decide the best cryptocurrencies to invest for maximum gains. Amongst all currencies, Ripple has quickly emerged to popularity as it has a range of benefits and prospects and is likely to be a good investment for the future.