If you are familiar with crypto currency you must have heard about Bitcoin and ripple. Ripple and crypto currency XRP have been steadily rising in the crypto currency charts. Firstly what exactly is ripple? You must have experience that the banking system in today’s world is pretty slow and outdated in terms of transferring money around the world. This is where people come into play. It aims at helping financial sectors with a fast and secure way of transferring money. The system is built on blockchain technology and it has two main forms of transferring values namely IOUs and XRP. The native currency of Ripple net is XRP which is used to transfer money quickly and security around the world.
However as the crypto currency industry is right now it is difficult to say if there are any possibilities that you will make any money with ripple in the near future. Remember the crypto currency industry is a very volatile one so there is no knowing the precise future of any stock or crypto currency. So coming back is it profitable to invest in Ripple? As per se crypto currency is not what for investment. Rather it is a commodity and you can trade it. As per the demands the price fluctuates and might go up but not the valuation of the company. Ripple’s main customers are actually international banks. As it cuts off time and cost for international transactions it is a very useful platform for international banks. There is also the case that banks are not connected via the same network. So there might not be any direct line between two banks when they need to transfer some money from one account to the other. This is where the ripple net comes into play with its aim to create the internet of value. With this you can transfer money in a matter of seconds and at a much lower cost. Ripple labs aims to serve banks and payment providers with lower transaction cost unlike other crypto currencies. If more banks adopt the ripple, chances are there that the prices will go higher.
You might wonder if XRP can be mined as it is a crypto currency. However Bitcoin mining is different than how ripple transactions are handled through a different process. You must also note that unlike Bitcoin miners validators don’t get compensation for their work with new coins. Now if you want to hold XRP there are a number of things you need to keep in mind. First you will need a wallet that can support the currency. Next you need a minimum deposit of 20 XRP in your account. This is done so that it can prevent people from spamming the people network through large number of accounts.
If you think that in the near future banks and institutions will use XRP to move values then investing in Ripple is a good idea. Now if the banks decide to use IOUs the XRP prices will remain stagnant. This is totally how the banks will plan out their infrastructure for the future. However no one knows for certain if the bank will actually adopt XRP in the future. But it is also notable that ripple has constantly stayed within the top five crypto currencies of all time. Ripple lab is slowly but surely climbing up the ladders in the crypto world. This doesn’t guarantee that the XRP prices will actually go up. However you must make sure that you have done your research properly before you decide on investing in any crypto currency. The fact that many countries are actually starting to see the potential of crypto currency is not something to be neglected. If it continues to rise at a steady rate it is possible that crypto currency will actually replace our traditional currencies.…Read More