After the surprising rise and consequent financial excitement of Bitcoin, plenty of people are open to investing in the next big thing to emerge from the world of cryptocurrency, and it’s possible that Ripple could be the perfect candidate for the role. Ripple actually plays two roles, both as an open payment network and a cryptocurrency (trading as XRP). XRP is currently one of the biggest cryptocurrencies on the market (by market cap).
However, as every investment made is considered a risk, it pays to learn as much as you can before going ahead, so the final decision is to be as informed as you can be. Below we share five major points about Ripple which are very worth knowing before an investment is made.
1.- Ripple was created by experts
OpenCoin is the company behind Ripple, and OpenCoin was founded by Chris Larsen and Jed McCaleb who both have impressive experience in this field – Larsen being the powerhouse behind an existing major company dealing with finances, and McCaleb with a background in bitcoin trading. They have been very successful in attracting hefty investments from various funding sources.
2.- Ripple is underpinned by a serious mission
The ultimate goal of Ripple is for it to become a viable and trustworthy alternative to current traditional payment methods, such as credit cards and PayPal. Crucially, this service involves very, very low fees – for example charging a total of just 1000th of a cent for a single transaction compared to the PayPal fee of around 3% plus a 30c fee on top.
3.- Traditional lenders are keen to support Ripple
Apple and Google were early supporters of Ripple, along with a couple of large banks, and many more global banks are keen to get on board. This bodes well for the future success of Ripple, which is of course pretty irresistible considering the tiny fee makes trading in XRP an easy way to make a lot more profit on their own lending deals with customers.
4.- Ripple could revolutionize the financial world
The Ripple currency is decentralized, offering bank to bank transactions with no costly middle fee stage to cover. Ripple can also work with a bank’s existing systems, there is no need for them to update in order to cope – as they must do with other cryptocurrencies. As if all that wasn’t enough, Ripple is also extremely fast when processing transactions – around 4 seconds a time. This is faster than their competitors, and a blink of an eye compared to the 3-5 days traditional bank transactions take.
5.- Ripple is safer than other cryptocurrencies
Largely because Ripple doesn’t use miners to confirm transactions, the risk of security breaches and hacking attacks is much lower.
There’s still a long way to go for cryptocurrencies like Ripple to become established as serious contenders in the financial markets, but for those looking to invest regardless, it certainly seems to be a good bet for the long term.
XRP Price Stable Against Coinmotion Criticism
On Feb 15, the XRP is moving up slightly, trading at $0.3089.
Over a few weeks, the crypto has been forming a triangle, still without testing either the resistance or the support. The MACD is however moving up, which makes the resistance breakout at 0.3047 more likely; this may then push the price to 0.3230. The overall trend is descending, though, so once the resistance at 0.3047 gets broken out, the price may also be sent to the support at 0.2899 and then break it out, heading towards the midterm support at 0.2804, and the target at $0.2470.
Coinmotion, a crypto exchange based on Finland, added the XRP to its portfolio. At the same time, the exchange published an article called XRP Is a Centralized Digital Currency, saying that the altcoin is not really a crypto.
The article author, Pessi Peura, says the investing process shows that Ripple is more like a security than a crypto. Besides, the token is developed by a single company, which is risky: in case Ripple Labs loses its reputation in any way, the XRP will have big problems.
Finally, Peura says Ripple Labs is controlling its tokens, which is totally against the decentralized network principles. This is actually the most curious thing, as Ripple Labs says its token is autonomous, and no monopoly is possible.
Ripple has not commented on the article yet, but is likely to comment soon, as the company is usually quick at reacting at any criticism in the media. Most likely, Ripple Labs will say the usual thing regarding XRP having nothing to do with securities.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Bank-based Cryptocurrencies Not Realistic: Ripple CEO
ipple Chief Executive Officer (CEO) Brad Garlinghouse recently said that bank-based cryptocurrencies are not realistic and he believes they are “deeply misguided” for the entire industry.
These remarks come in the wake of the news reports that announced that the international bank, JP Morgan was all set to announce its own coin, JPM token. As earlier reported by Crypto-News India, the trials for the cryptocurrency, named as “JPM Coin” will begin in a few months and is designed for instant settlement of payments between clients. With the launch of its new cryptocurrency, the bank is preparing for the future to settle the transactions at lightning speed similar to that of Bitcoin rather than relying on old technology like wire transfers.
At the time, Umar Farooq, J.P. Morgan’s Head of Blockchain projects had said, “So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this.”
This is not the first time Garlinghouse expressed doubts about bank-based cryptocurrencies. In 2016, he had reportedly said, “A bank-issued digital asset can only really efficiently settle between the banks who issued it. Then, two scenarios can play out.”
Detailing those scenarios, the Ripple CEO had stated, “Scenario one: all banks around the world put aside competitive and geopolitical differences, adopt the same digital asset, agree on its rules, and harmoniously govern its usage. Fat chance. Scenario two (the more likely scenario): banks not in the issuing group issue their own digital assets with their own sets of rules and governance.”
Throwing in a good word about XRP, the CEO said, “We strongly believe banks need an independent digital asset to enable truly efficient settlement and we believe XRP is best positioned for that role.”
It remains to be seen, how exactly XRP intends to do what it had set out to do.
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Ripple new version of XRP Ledger 1.2.0 launched
- XRP Ledger requested to update the code before February 27.
- XRP Ledger 1.2.0 is more resistance to censorship.
The San-Francisco-based blockchain company Ripple is reported to have released a new version of its renowned XRP ledger 1.2.0. The new version is designed to improve user experience as well expand the range of services it is offering.
The users of the ledger are requested to update to the latest version before February 27, 2019. The upgrade is vital because without it, the server won’t be able to determine the authenticity of the ledger and in return transactions will not be processed neither will they be submitted.
What has changed?
The new version according to the team at Ripple, is more resistance to censorship. This means that the transaction being processed cannot be determined by any single entity. Moreover, the transaction will remain immutable after entering the ledger. While the previous version was resistance to censorship, the team claims that this version greatly improves the feature. Warnings will be issued if there are attempts to interrupt the working of the ledger.
Furthermore, the upgrade has integrated what is commonly referred to as MultiSignReserve amendment. Ripple has now made it easier who take part in signing transactions while reserving only 5 XRP. Other updates included bug fixing and removal of errors on two transactions.
The company has also launched a bounty program. Developers have been requested to review all the updates in the new version and communicate to the company in the event any vulnerabilities are detected.