RIPPLE’S founders are the latest crypto billionaires.
The price of ripple has increased by 1240 per cent in the last 30 days, from around 25 US cents to $US3.38, surging past bitcoin cash and ethereum to become the second largest cryptocurrency.
This time last year, ripple was sitting at just under 0.7 of a US cent. That’s an increase in value of 51,542 per cent in 12 months.
Ripple’s market capitalisation — the price multiplied by the number of coins in circulation — is now $US130 billion, roughly half that of bitcoin, with ethereum on $US96 billion and bitcoin cash on $US41 billion.
Two weeks ago, ripple’s market cap was just $36 billion.
At one Point in the 1989 Japanese real estate bubble, the Imperial Palace in Japan was said to be worth more than the entire state of California,, things that don't make sense don't last….be careful out there
— Michael Novogratz (@novogratz) January 4, 2018
Mike Novogratz, the billionaire investor who last month revealed he was “pressing the pause button” on plans for a cryptocurrency hedge fund amid uncertain market conditions, has warned 2018 will be a “wild ride”.
“Ripple Labs worth $US225 billion,” he tweeted on Thursday. “Tenth largest company by market cap in the world. Makes [co-founder] Chris Larsen worth $US55 billion tying Mark Zuckerberg as fifth richest man in the world.”
Mr Larsen owns 5.19 billion XRP — the native currency of the ripple network — and a 17 per cent stake in the company he co-founded in 2012, according CNBC, putting his net worth at an estimated $US59.9 billion, ahead of Google founders Larry Page and Sergey Brin and just behind Facebook founder Mark Zuckerberg.
So what exactly is ripple, what makes it different from bitcoin, and what’s behind the surge in interest? Ripple is similar to bitcoin in that both are decentralised ledger systems designed to facilitate transactions across the internet.
But while bitcoin is a decentralised digital currency, ripple is a “decentralised transaction network that also contains a digital currency”, as former employee Nathan Ihara explained on Quora in 2013.
“The bitcoin network tracks the movement of bitcoins. The ripple network can track information of any kind,” he wrote. “As a result, ripple can track account balances of any existing currency.”
That, along with its capacity to rapidly settle cross-border transactions, has made it attractive to traditional banks and financial institutions, with more than 100 adopting the technology so far, including Westpac and UBS.
“Bitcoin and ripple use a different method to reach network consensus,” Mr Ihara adds. “Bitcoin uses proof-of-work (mining). Ripple uses an iterative consensus process. As a result, ripple is faster than bitcoin. It only takes a few seconds to finalise transactions. It’s also more energy efficient.”
As IG analysts wrote in a recent note, ripple effectively positions itself as a “complement” to bitcoin, rather than its rival. “The ripple network is meant to allow the transfer of any form of currency, regardless of whether it is the traditional sort, such as dollars or euros, or the new types such as bitcoin,” IG wrote.
Unlike bitcoins, which are “mined” by computers on the network at a set rate to a fixed 21 million out to the year 2140, ripple is “pre-mined”, with 100 billion units in existence, 20 billion of which were retained by the founders.
“The interest in XRP appears to tie in with its proprietary blockchain that’s focused on financial service companies,” Motley Fool analyst Sean Williams wrote recently. “In particular, ripple’s blockchain could allow for cross-border payments and transactions that occur instantly, rather than waiting days as under the current system.”
In a 2015 report, cryptocurrency researcher Tim Swanson argued banks would embrace “permissioned” ledgers like ripple — which use legal entities to validate transactions on the network — as opposed to bitcoin’s “unpermissioned” ledger which relies on anonymous miners.
“The idea with the distributed ledger system is to say, ‘How can we take the useful parts of bitcoin — or at least the ledger idea — and integrate it with businesses that have legal reputations?’”
But that cosiness with the traditional financial industry also creates suspicion among cryptocurrency diehards — after all, bitcoin’s original purpose was to cut out banks altogether.
Tom Luongo, financial commentator with Newsmax and publisher of the Gold, Goats n’ Guns blog, has speculated that financial institutions are launching a co-ordinated “attack” on the cryptocurrency market, with ripple, disparagingly referred to as “BanksterCoin”, as the weapon.
“Ripple is the stalking horse of the cryptocurrency industry,” he writes. “Its meteoric rise in price coincides with bitcoin’s peak and subsequent meandering.
“The best way to kill a market is to get retail investors buying the peak and selling into it. It’s easy to believe in an irrational pump of bitcoin to $US20,000 and the subsequent rotation out and into ripple, boosting its price and profile, while leaving ‘teh newbz’ hanging at the top.”
Mr Luongo argued the spike to $US20,000 was created by the controversial rollout of bitcoin cash by cryptocurrency exchange Coinbase last month, which led to accusations of insider trading after a suspicious price increase in the bitcoin “fork” prior to the announcement.
“The goal there was to sow confusion and undermine bitcoin cash as an alternative to bitcoin,” he writes. “See, folks, all of this confusion and carnage comes from not having any kind of centralised control. But, hey, there’s this new cool thing called ripple which solves all of that and the price is going bonkers! Trap set.”
Bitcoin price prediction: BTC/USD confluence detector shows lack of resistance and support levels
- The daily confluence detector shows one healthy support level at $10,075.
- BTC/USD has gone down from $10,110 to $10,092.
The hourly BTC/USD price chart shows us that the price dropped from $10,130 to $9,815 this Thursday. The bulls then gathered momentum before it picked up to $10,190, meeting resistance. Since then, BTC/USD has been on a continuous downtrend and is currently trending around $10,092.
BTC/USD daily confluence detector
The daily confluence detector shows only one prominent resistance and support level. The $10,500 resistance level has the 5-day simple moving average (SMA 5) curve. The $10,075 support level has the 1-month 23.6% Fibonacci retracement level, SMA 10, 1-hour Bollinger band middle curve and 4-hour previous low.
Bloomberg Says Bitcoin Could be Finding Support at $10,000 as Altcoins Rebound
Yesterday, Bitcoin (BTC) suddenly slipped. After tapping $11,000 just days earlier, the cryptocurrency cratered, falling under $10,000 as bulls failed to step in.
This move was so dramatic that according to the Bitcoin Fear and Greed Index, this sudden reversal has resulted in a reading of five — the index’s lowest value in its history. This is crazy, especially considering that BTC is trading over 300% higher than its bottom price of $3,150.
While the index’s reading may seem entirely arbitrary — just look at the bullish momentum Bitcoin has experienced in the first half of 2019 — the index is backed by data.
The website that hosts the index claims it analyses a fair mix of volatility, market momentum and volume, social media trends, surveys, dominance, and Google Trends to get the gist of how cryptocurrency investors are faring.
Bitcoin Bounces Back
But, the Bitcoin price has managed to bounce back. After remaining under $10,000 for a number of hours, the cryptocurrency managed to reclaim five digits.
Per Bloomberg, the cryptocurrency “appears to be gaining momentum for a push higher”. The analyst recently claimed that as BTC recently dropped “below the lower limit of its GTI Vera Band Indicator, which measures up and down trends”, a spike to the upside may be ahead. The last four times the bottom band was breached, “it managed to quickly rally back into the range”.
According to Mike McGlone, an analyst at Bloomberg Intelligence, Bitcoin is currently setting itself up for a recovery. He explained in a note that its “unique attributes” (likely a reference to its classification as a digital store of value/digital version of gold) and tumult on the macroeconomic stage could help boost the value of Bitcoin. Indeed, many say that if trade wars continue to rage and if central banks continue to enlist unorthodox monetary policy, the need for a form of money that is decentralized, scarce, borderless, and public will only swell.
While McGlone is bullish for the medium term, he told Bloomberg TV in a recent interview that his short and long-term prospects on the cryptocurrency are mixed.
Per previous reports from Ethereum World News, McGlone argued that with there being key support at $8,000 and heavy resistance at $20,000, the cryptocurrency could be stuck in that range “endlessly”. He added that on-chain fundamentals — active addresses, number of daily transactions, fees, and so on and so forth — have begun to taper off like they did to trigger 2018’s bear market.
Altcoins Finally Gain Some Steam
Interestingly, throughout this short-term recovery, altcoins have bounced, actually outperforming Bitcoin for once.
According to CoinMarketCap, Bitcoin dominance has fallen to 68.5% from nearly 70%. Ethereum is up 3.5% on the day, while BTC is up a relatively mere 0.2%. It’s a similar story across the cryptocurrency rankings.
Bitcoin Vs. Ripple: Amidst the Bearish Trend, The Coins Gave Some Brief Moment of Trading
There is a close link between the movement of Bitcoin and Ripple. Both of them are strong coins with a dedicated community of users. At present, they are facing some negative sentiments, but this will wash off soon.
Current Statistics (On August 22 at UTC 08:38):
|Parameters||Ripple (XRP)||Bitcoin (BTC)|
|Market Cap||11,339,553,299 USD||178,409,831,940 USD|
|24-Hour Volume||1,033,612,299 USD||18,408,249,735 USD|
|Circulating Supply||42,890,708,341 XRP||17,890,087 BTC|
|Price in BTC||0.00002654||NA|
BTC Vs. XRP Price Analysis:
Both Bitcoin and Ripple started on a declining note. In the first hours of the day, Bitcoin price has declined by 6.15% and fell to the level of 10,125.86 USD. Similarly, Ripple declined by 4.15% and landed at $0.2628. After that, the declining trend has slowed a bit, and coins kept fluctuating up and down in the range of around 2%. However, during the early minutes of the second half, on the other day, came yet another dip where BTC price declined by 2.21% and Ethereum by 0.96%.
After the second intraday breakdown, the digital coins have shown some strengthening for the next couple of hours. In that period, BTC hiked by 1.75% and XRP by 1.5%. The next plunge that came in around midnight dragged Bitcoin price by 2.91% and took it below $10k mark again. Similarly, XRP declined by 2.02% and landed at the level of 0.26 USD. Lately, the cryptos have been hovering at those levels and showed some bounce back, which helped then to move toward their current position.
BTC vs XRP Prediction & Conclusion:
Making any prediction in this swinging market is a rigorous task. However, for now, Ripple faces immediate resistance at $0.274454 and support at $0.259335. For Bitcoin, the immediate resistance is at 10,636.95 USD and support level at $9,800.93.
The Ripple team has done a recent assessment of the blockchain and assured that they will work toward the narrowing of the skill gap. Further, they added that in order to address the issue, the team would seek the help of experts including academia, governments, and private organizations.