When the cryptocurrency industry exploded onto the scene in 2017, the coin that got the most attention was Bitcoin. While Bitcoin deserves attention as it has changed the game for digital assets as a whole, it’s not the only noteworthy cryptocurrency.
One crypto asset that has been making noise in recent months is XRP. In fact, many believe the XRP price could skyrocket over the next few months and, while there are no guarantees in the crypto world, it may happen. This article is going to introduce you to XRP, why it has become so popular, why it could skyrocket and some roadblocks XRP could face.
What are Ripple and XRP?
First things first, we need to learn little background information about XRP. XRP was released back in 2012 and is currently the third most popular cryptocurrency on the planet, as of mid-August 2018. It has a total market cap of nearly $11 billion.
Ripple itself is a completely virtual payment network, and XRP acts as a traditional cryptocurrency within this network. The Ripple network is widely used by financial institutions and banks as it allows to transfer a variety of different currencies in a simple way. Now that we have some basic information about Ripple and XRP, let’s dig a little deeper into their features and benefits.
The Features and Benefits of Ripple
Of course, the biggest benefit of Ripple is their payment network. Too many of the traditional methods of sending and receiving money are simply not up to par with the demands and expectations of the modern-day consumers. Ripple is trying to be the best option. They offer a quick, affordable, reliable and seamless way to send all different types of currencies, crypto or fiat.
Ripple also has solid scalability when compared to other popular cryptocurrencies like Bitcoin and Ethereum. When most coins or crypto platforms get more users and more transactions that need to take place, those transactions can become incredibly slow, sluggish and expensive. Thankfully, Ripple doesn’t suffer from the same issues.
Another big benefit that Ripple touts is their vast amount of partnerships and customers. They have well over 100 companies participating in their global network, and that number is only expected to go even higher in the future. This entrance into the mainstream is still a rare case for the industry and could help both Ripple and XRP be more successful in the long run.
Why the Price of XRP Could Skyrocket
While it is already the third largest cryptocurrency by market capitalization, many people hold the belief that XRP could grow even more, and potentially become the biggest crypto asset on the entire planet. So why do they feel that way? Well, there are a few different reasons.
First and foremost, the platform isn’t facing the same issues as other top currencies. Ripple can help to decrease the high costs that generally come with financial transactions and can provide quicker and more effective transfers than other options out there.
Next, the amount of financial institutions that have partnered with Ripple gives them a good “foot in the door” in the mainstream, which is necessary if XRP ever wants to hit it big. Ripple is consistently announcing new and exciting partnerships, which keeps them in the news. A lot of positive media attention is never a bad idea for any cryptocurrency.
Also, Ripple has garnered a lot of support and attention from Asia, which could help to bump the price up. Asia plays a massive role in the overall cryptocurrency space, so with XRP getting more attention from the area than many other currencies, it can become an exciting opportunity for many investors.
Another thing that many people might overlook is just how easy XRP is to access. Because of its high market cap and popularity, XRP is listed on many popular exchanges out there, so there is a lot of opportunities for people to invest in it.
Concerns and Issues for Ripple
While all this sounds great, there is no guarantee XRP will skyrocket in price. Not only that, but there are some concerns and issues that XRP is facing and may potentially face in the future. It is important to familiarize yourself with both the good and the bad when it comes to a cryptocurrency before you ever think about investing.
One challenge that XRP is facing is the ever-present possibility of regulation. However, while other coins like Bitcoin face this same issue, it could be a lot worse for XRP. See, if the SEC decides that XRP is a security (and not a currency, like Bitcoin), then it could be more susceptible to legal action, which is not a good thing.
Also, while some coins and assets survive well in volatile situations, XRP doesn’t. For them to go mainstream, the market needs to be a little bit more stable and predictable. If not, it will not be taken seriously if it is worth $2 one day and then $3.50 the next. And with how volatile the crypto industry has been in 2018 so far, XRP might be a long way away from becoming the mainstream currency and/or payment network that it would like to be.
In conclusion, XRP might continue being one of the most popular cryptocurrency assets out there and could very well skyrocket in price in the near future. However, there are no sure things in crypto, and XRP definitely has some looming issues and concerns that may keep it from increasing in price.
As always, before investing in XRP or any other cryptocurrency, you need to be sure to perform your own research. You shouldn’t take the investment advice of others and should only invest in things you know or feel would be a solid investment.
