Is Ripple Poised To Take Over The Crypto World?
At this point, bitcoin is somewhat of a household word. But what about rival Ripple’s cryptocurrency, XRP? Even though Bitcoin is the largest cryptocurrency by market capitalization, XRP is rapidly gaining followers. Investors are finding numerous advantages for the coin from blockchain technology company Ripple, including cost-cutting and efficiencies for bank transfers. Take a look at the comparisons below to see which investment may be right for you…
Instant Gratification
Most banks use SWIFT technology, which completes bank transfers but oftentimes takes numerous days. For example, when you Venmo someone, you may think the transaction is instantaneous, but most of the time, the action isn’t actually complete until the banks fully clear the payment days later.
Ripple offers a huge comparative advantage for banks. Their blockchain technology supports much faster transfers at much lower rates if the bank uses XRP vs. a currency like the U.S. dollar.
Many large international financial companies like Bank of America and American Express have bought into Ripple’s technology, which gives the coin even more credibility.
Sustainability
While early investors in Bitcoin have seen tremendous gains, the “mining” system has slowed significantly from the days of early adoption. The slow speed and high processing fees for Bitcoin transactions have serious ramifications for the coin’s sustainability. The substantial amount of resources involved is also a negative—the mining process requires massive amounts of electricity.
XRP instead boasts both speedy and relatively inexpensive transactions that don’t rely on mining. One can see how this may entice large institutions like banks, which complete vast numbers of transfers daily.
Accessibility
You can’t purchase XRP on Coinbase, a widespread digital currency exchange. Instead, you must buy a cryptocurrency that is offered on Coinbase, like Bitcoin (so, you’d still need a Coinbase account), and then exchange that currency for XRP. If it sounds complicated, that’s because it is.
As more and more banks gravitate toward XRP, however, the coin’s value should only increase with demand.
Like anything, it will take some time to get the hang of buying, selling, and exchanging cryptocurrency. But also like anything, you can find numerous tutorials on YouTube to walk you through the process. Judging by the number of views these videos have received, you’re certainly not alone.