Ripple Rises and Becomes Second Most Valued Coin After Bitcoin

It has been one of the most actively traded coins for the year but hovered in the 0.25 cent range most of it. Suddenly, Ripple took off and is now near $3. Ripple is a cryptocurrency like bitcoin but slightly different in that it’s a token whose value is tied to something else. Ripple Labs, a global transaction company, created the token.
The goal of Ripple is to create seamless transactions that occur must faster than present transactions. Banks like Santander are using Ripple to process payments. Workers in foreign countries also use Ripple to send money back home to relatives. The goals outlined by Ripple are cetainly good if they can hold up. They are:easy access, speed, traceability and cost.
As compared to Bitcoin, this would be good. The original goal of Bitcoin was to lower the cost of a transaction but transacting Bitcoin often has high fees that make it impractical to use regularly. One person went to use Bitcoin for a $50 purchase but would have to pay $30 in fees making the total $80. Not a great deal and far away from the original concept of Bitcoin which was to halve processing fees for using a credit/debit card.
Since Bitcoin exploded so has the demand. This demand has created a lag in settlements at various times. Sometimes 10 hours have lapsed before settling a transaction. Another goal of Ripple is the reduce this.
Recent Rise
The rise in Ripple is mostly on rumors and speculation. It is rumored to being added to Coinbase, the largest cryptocurrency exchange in the U.S. The demand alone could send the price much higher. It jumped when it completed a cryptographic lockup of coins. Speculation is also fueling the rise – an investor gets more return on a lower cost coin like Ripple vs higher priced Bitcoin.
The future of Ripple remains unclear. If it catches on with more banks use could rise and this could become the cryptocurrency to look for in 2018. Right now, early investors are enjoying a great gain. The creators of Ripple are now multi-billionaires.

Leave a Reply

Your email address will not be published. Required fields are marked *