Connect with us

Bitcoin

Ripple (XRP) isn’t a Real Cryptocurrency, Claims Exchange that Just Listed the ‘Heavily Centralized’ Token

Published

on

Ripple (XRP) is not a cryptocurrency, and it is heavily centralized in the hands of the corporate entity known as Ripple. That’s the opinion of a cryptocurrency exchange which listed XRP on its platform just one day ago.

‘XRP IS NOT A CRYPTOCURRENCY’

Ripple CEO Brad Garlinghouse XRP

Ripple CEO Brad Garlinghouse claims that XRP is “very clearly decentralized,” but many others disagree. | Source: Steve Jennings/Getty Images for TechCrunch

The Coinmotion exchange, based in Finland, released this blog post just hours after listing Ripple on its trading platform, titled: “XRP is a Centralized Virtual Currency.”

The post details the opinion of the exchange operators that XRP is not a typical cryptocurrency, is not backed up by a traditional blockchain, and that it is heavily centralized in the hands of parent company, Ripple Labs.

“What one needs to know about XRP is that it is not cryptocurrency in the strict meaning of the word… What differentiates XRP from cryptocurrencies is that it is not based on blockchain, it is not mined and it is heavily centralized. Ripple network is a suite of different applications by Ripple Labs. XRP, is the currency of Ripple network, which the apps use.”

That’s an opinion that’s been doing the rounds for a long time in crypto circles. Every few months another voice pops up to reveal the “shady truth” that XRP is actually a centralized product.

But the difference is, this time it’s coming from a voice with something to lose by making that allegation. Coinmotion has absolutely nothing to gain by spreading FUD about XRP, and the fact that the release of this blog post coincides with its listing of XRP (after huge demand from Finnish consumers), only demonstrates how concerned they must be.

‘RIPPLE LABS CONTROLS XRP’

ripple xrp cryptocurrency

The Finnish crypto exchange claims that Ripple Labs controls XRP. | Source: Shutterstock

The article claims that Ripple (the network) doesn’t use a blockchain to secure transactions, but instead uses a method known as HashTree which is patented by Ripple Labs (the company). From the post:

“In HashTree all the transactions and balances are combined to a single number, which servers compare to each other to reach consensus. This kind of system is faster than blockchain, but far more centralized.”

Coinmotion also details the particulars of XRP’s (the currency) supply statistics, noting:

“XRP isn’t mined like typical cryptocurrencies. All 100 billion ripple coins have already been created. Ripple plans to release about half of them on to the markets while keeping the other half. Currently there are about 39% of ripple in the open markets, while 61% are kept by Ripple Labs.”

According to Coinmotion, the control of XRP in the hands of a single company amounts to a monopoly – one which is antithetical to the standard principles of a cryptocurrency like Bitcoin:“Ripple Labs has also the control on how and when to release new ripple on the markets. This is strackly (sic) in contrast to how decentralized cryptocurrencies work: with Bitcoin everybody knows and agrees on how new bitcoin are minted. With Ripple it is the monopoly of Ripple Labs to make the decisions.”

WHY RIPPLE (XRP) COULD SUCCEED ANYWAY

The article rounds off by suggesting that XRP could still succeed despite the points detailed above. Even if Coinmotion doesn’t consider XRP to be a pure crypto or blockchain solution, it still qualifies as a modern fintech solution. The article notes:

“As a centralized system it could also be easier to jump on than decentralized blockchain systems. Grand institutions such as large scale companies and banks are often quite conservative in adapting new systems. Centralized system might seem less intimidating than a decentralized one.”

That’s a sentiment I’ve expressed myself, and it’s one that was easy to come by towards the end of last year, when every week in September and October seemed to be about financial institutions adopting one of Ripple Labs’ products.

By January of this year, Ripple Labs announced the addition of thirteen more financial institutions to its RippleNet, taking the total to over 200. Round about the same time, co-founder Jed McCaleb – now of Stellar – found time to fire his own shots at cryptocurrency competitors, alleging that Tron (TRX) was “just garbage.”

BRAD GARLINGHOUSE CLAIMS XRP IS ‘VERY CLEARLY DECENTRALIZED’

As for criticism of XRP, the CEO of Ripple Labs, Brad Garlinghouse, has never shied away from the debate, and made the case in 2018 that even he had no control over XRP’s ledger:

“It is very clearly decentralized. I, as CEO of the company, can’t control the XRP ledger.”

Coinmotion ends with a rather ominous statement which appears to translate roughly as “If this goes wrong, it’s on you!”

“Nonetheless since You, our dear customer, have asked for it, we have offered you the possibility to buy and sell XRP on Coinmotion.”

Bitcoin

Bitcoin (BTC/USD) forecast and analysis on October 18, 2019

Published

on

Cryptocurrency Bitcoin (BTC/USD) is trading at 7991. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.

Bitcoin (BTC/USD) forecast and analysis on October 18, 2019

As part of the Bitcoin exchange rate forecast, a test level of 8200 is expected. Where can we expect an attempt to continue the fall of BTC/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 7260. The conservative area for Bitcoin sales is located near the upper border of the Bollinger Bands indicator strip at 8420.

Bitcoin (BTC/USD) forecast and analysis on October 18, 2019

Cancellation of the option to continue the depreciation of Bitcoin will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of ​​8540. This will indicate a change in the current trend in favor of the bullish for BTC/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, one should expect acceleration of the fall of the cryptocurrency.

Bitcoin (BTC/USD) forecast and analysis on October 18, 2019 implies a test level of 8200. Further, it is expected to continue falling to the area below the level of 7260. The conservative area for selling Bitcoin is located area of 8420. Canceling the option of falling cryptocurrency will be a breakdown of the level of 8540. In this case, we can expect continuation growth.


News Source

Continue Reading

Bitcoin

Bitcoin re-enters $8,000-zone, but what is its upside potential? – Confluence Detector

Published

on

  • BTC/USD went up from $7,998.50 to $8,077.50 this Thursday.
  • The daily confluence detector shows two healthy resistance levels to overcome on the upside.

Following two straight bearish days, which took the price below the $8,000-zone, BTC/USD is on the course to recovery. Bitcoin had gone up from $7,998.50 to $8,077.50 this Thursday before it improved further to $8,087.40 this Friday. The hourly BTC/USD chart shows us that the market found intra-day resistance at $7,943.15 before it bounced up to $8,075. Since then, the price trended horizontally for a bit, negotiating with the $8,090 resistance line. The bulls managed to rally together to break past it and go up to $8,110, before correcting itself to $8,087.40.

BTC/USD daily confluence detector

fxsoriginal

The daily confluence detector has two healthy resistance levels at $8,190 and $8,260. $8,190 has the five-day Simple Moving Average (SMA 5) and one-week Fibonacci 61.8% retracement level. $8,260 has the SMA 100, one-day Pivot Point resistance two and one-day Bollinger Band middle curve.

On the downside, there is a support level of note at $8,065, which has the SMA 5, SMA 50, SMA 200, one-hour Bollinger band middle curve, one-day Fibonacci 38.2% retracement level and one-hour previous low.


  News Source

Continue Reading

Bitcoin

Bitcoin could become store of value, as institutional interest increases

Published

on

Institutional interest in Bitcoin has seen a significant rise in 2019, as several derivative financial products on top of Bitcoin have flooded the market. Active exposure of these investors to the digital asset realm has brought back the debate about whether Bitcoin is the new “store of value.” According to Grayscale’s managing director Michael Sonnenshein, there has been a certain shift in perception for sure.

Sonnenshein appeared on ‘The Scoop‘ recently to discuss the impact of institutional investor’s exposure to the digital asset class. The managing director of the firm believed that although Gold has been the standard store of value for centuries, and it made sense in the physical age, but given the rapid growth of the digital monetary age, Bitcoin for sure is challenging to become the new store of value. He explained,

“It is now nearly 2020 and we’re starting to ask investors with this question which is, what constitutes a store of value? It historically has been gold but that may have made more sense for a physical age. As we are in fully immersing ourselves now in this digital age perhaps gold doesn’t hold up as much as it once did as that store of value and perhaps investors need to think about a digital store of value such as Bitcoin.”

Institutional investors hold the key for Bitcoin and any other digital asset to gain mainstream adoption, and as of today they are more aware and learned about Bitcoin and its potential as an investment than ever before. More importantly, these investors are using Bitcoin as a hedge fund and store of value to diversify their investment portfolio as well as make quick capital gains on their investment.

The increasing interest of institutional investors is evident from the fact that GrayScale registered its highest gain in the last quarter with over $250 million raised from the investors, Binance has registered the highest daily volumes of over $700 million from its Binance futures platforms. Bakkt has launched its futures contracts recently while CME’s futures contracts year-to-date volumes have seen a significant rise over the past year.

Source:ambcrypto

Continue Reading