Ripple has emerged as a technology that can work both as a cryptocurrency and as a digital payment network for carrying out financial transactions all across the globe. Ripple was launched in the year 2012 and since then, it has come a long way. According to reports, Ripple has already become the third-largest cryptocurrency by market cap. As a cryptocurrency, Ripple (XRP) offers a powerful transaction system in combination with an effectively established infrastructure.
Ripple was co-founded by Chris Larsen and Jed McCaleb. It has now amassed massive global recognition and market success through the digital coin, XRP. Ripple technology has gained huge popularity for its digital payment protocol rather than a cryptocurrency. It is worth noting that Ripple runs on a decentralized platform that permits money transfer in any form. Ripple can work with various exchanges and currencies that may include physical or crypto-like US Dollars, Yen, Bitcoin, and Litecoin. In order to understand a cryptocurrency in a better way, it is important to understand all its pros and cons. Here are some:
Pros of Ripple:
Ripple’s XRP protocol is controlled by xRapid product that leads to economic and swifter solutions in comparison with its rivals. Ripple’s transaction speed is 1500 transactions/ second (TPS), which is even faster than 8 TPS controlled by the Bitcoin blockchain, according to XRP News Today. The powerful protocol of Ripple has made it a highly scalable product. Experts are of the opinion that if Ripple continues to tread the same path, it will soon emerge as the first cryptocurrency to gain global acceptance.
Big Players’ Support:
Ripple has already garnered the support of leading players in the market. It is interesting to note that popular banks and payment systems have already posed faith in Ripple and its technology to carry out cross-border payments, remittances, etc. The surging trust in Ripple’s services will positively impact the overall performance of the token.
Low Price and Massive Market Cap:
Ripple’s XRP does not fall into the category of an investment vehicle. However, you will still be able to invest your money on it as it only costs just a few cents. The paltry price has emerged as the ideal entry point for both small and middle-sized investors who may find it tough to buy massive sums of Bitcoin and Ethereum.
Cons of Ripple
A large number of cryptocurrencies provide a vast amount of anonymity. Despite this, not all of them have achieved perfection. In the case of Ripple, there is a very small degree of anonymity. Efforts are being channelized towards the direction of making Ripple a completely anonymous currency. However, the likelihood of it seems less likely in the near future.
Ownership of Plenty of Coins
The yet another disadvantage that has plagued Ripple is that the company owns a whopping 63 percent of all coins. It implies that they can control the price movement. The most interesting thing about cryptocurrencies is that the direction in which the coin moves is ruled by users instead of an individual entity.
Gateway Counterparty Risk
In case you happen to transact on an unreliable gateway on Ripple, chances of losing your coins will surge. And, if you have coins on this gateway and another party fails to adhere to the obligations, it may put your stake at risk. Ripple is trying its level best to eliminate this issue.
If you are planning an investment in Ripple, you may go ahead. Experts suggest it is going to surge in value in the years to come. The team at Ripple continues to upgrade the system and allow several financial organizations to make optimum utilization of their platform. Ripple has a clear goal of enhancing global transactions. It gives investors and financial institutions a better sense of direction in comparison to other coins. If you want to know about the current market position of Ripple (XRP) or want to get more details about future prices of Ripple, then you must visit our website’s other pages.