When Will Ripple Make You Rich?

As of today, Ripple keeps at 20 cents and it seems that it is not really trending, which means you should focus on the long-term rather than trade it in short timeframes.

Some say it’s a good investment that can make you rich, while others say it’s overvalued. On top of that, the latter doesn’t really respect Ripple because of dealing with banks across the world. You know – the banks control people and money, while cryptocurrency enthusiasts expect a decentralization process rather than vice versa.

My opinion? I think that Ripple is just a stable cryptocurrency. Yes – stable is the right word, at least for now.

However, you should understand that Ripple is not like Bitcoin or Ethereum. Ripple is an international settlement system that lets banks transfer funds and settle payments in various currencies. The whole system is based on Ripple Transaction Protocol, which is a different concept from XRP, the latter being the token inside the protocol, which protects it from DDOS attacks. So, if more banks deal with Ripple, it doesn’t mean they invest in XRP and boost its price by doing this – banks actually deal with Ripple protocol.

As a global settlement network for banks, Ripple blockchain is not as decentralized as Ethereum or Bitcoin blockchain. Its system is based on DLT, but it has a kind of control anyway since there is an authority above that, such as Ripple founders. Ripple was created for banks as a tool, not as a speculative instrument. In fact, Ripple founders themselves do not recommend investing in XRP because it is not a speculative asset!

Average persons don’t have easy access to Ripple blockchain – it’s for banks. You should also consider the following:

  • Unlike ETH or BTC, XRP was not intended as a means to store value but to digitalize bank’s transactions. Thus, we may not see XRP grow in value because of increased demand from more people – like BTC.
  • Ripple company holds 60% of XRP – this is really dangerous. As soon as their tokens reach the system, the price can drop.

People say there will be scarcity in Ripple because all the transaction fees within the system are completely destroyed. However, it doesn’t mean that Ripple will disappear in 10 years because of it. The pace of XRP destruction is so slow that Ripple can stay well for 1000 years.

Considering all the conditions as of today, it can’t make you reach soon. Even if it will double or triple, I guess it won’t make you rich because of growing from $1,000 to $3,000. However, conditions may change, as Ripple may introduce new unpredictable approaches. Who knows?


Tags :

1 Comment

Leave Your Comment

Leave a Reply