Ripple’s XRP is one of the leading cryptocurrencies in the world. It holds the third sport by market capitalization, so it’s bigger than any digital asset you’ve ever heard about except for Bitcoin and Ethereum. Besides its sheer size in capitalization, XRP was the most profitable coin in the market for two consecutive years, 2017 and 2018, which is quite remarkable in itself. Just think about it. This coin can return record profits in the best year the crypto market ever had, but also in the worst year. How’s that for reliability?
Things are about to get even better for XRP holders and in this article, we’ll explain to you why.
We start with XRP’s primary use case, which is to eliminate friction in settling international payments between banks. That’s one of the reasons that will drive XRP’s value up in the future. As more banks adopt Ripple’s blockchain, software platforms, and cryptocurrency to carry out this task, they will be using XRP as a mediating coin to settle all their cross-border commitments. That will increase demand for the token dramatically, and markets are all about supply and demand. The more the market asks for an asset, the more valuable it becomes.
Misconceptions about xCurrent vs xRapid
Some of Ripple’s critics like to say that Ripple’s banking partners won’t use xRapid (the platform that settles payments using XRP) because they’re using xCurrent already.
That’s wrong at several different levels.
First of all, Ripple has many strategic partners in the banking and remittances industry. More than 200 hundred all over the world and the list keeps growing. But hardly any of them is actually using xCurrent at all. Not at a production stage at least.
Most of Ripple’s partners have agreed to test the technology and run pilot programs to find out what the advantages in the new technology are and to figure out how to integrate it into its daily business activities. Only a handful of partners are really using Ripple’s technology (and token) at the production stage, and that’s an important fact to understand.
The main difference between xCurrent an xRapid is that xRapid uses the XRP token as a mediating currency between parties. That increases liquidity, speed, and reliability in transfers. xCurrent, on the other hand, is more of a messaging platform that doesn’t really solve the transfer of value problem within the platform. The crucial fact here is that using one doesn’t exclude the other.
And just as vital is this: xRapid is faster, cheaper, more reliable. So as banks try it out and use it, they’re likely to choose the better option, even if they know and like the other one. So there’s no reason to believe that xCurrent users will never adopt xRapid. Saying that they will stick with xCurrent assumes that banks will choose the slower, more expensive option. Only somebody who doesn’t know that banks are always trying to save money could believe that.
XRP will take off for sure. Not in hours or days, maybe. But this is a project with excellent fundamentals, use cases, and it’s already been the world’s best performing digital coin. It could repeat the feat this year and many times over.
So don’t buy any of the overhype but keep an eye out for XRP. You won’t regret it. That’s what we think as things stand.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.