A world of digital currency is getting wider and wider as many new enthusiasts are joining the world of cryptocurrency. Everyone has heard of Bitcoin, now get ready for Ripple. It’s gaining popularity as a payment settlement, money transfer system, and currency exchange. Unlike other cryptocurrencies like Bitcoin, Litecoin, and Ethereum, Ripple is developed by an official company, Ripple company, which has certain goals. Their offices are in Australia, Luxemburg, and the UK.
While Bitcoin is Blockchain-based and can be mined, this one isn’t designed to be mined. XRP tokens have been pre-mined, at the amount of 100 billion, and 38 billion is currently available. So, the amount is fixed and already generated.
Maybe you can’t mine Ripple, but you can buy this cryptocurrency and store it in the wallet. XRP tokens can be used only once. That means, as tokens are being used and no new ones are being generated, the stocks will eventually dry up which explains the Ripple price increase. The only way to get tokens is by buying them, or exchanging other currency, like Bitcoin, for Ripple. So, if you mine Bitcoin, and exchange it for Ripple, you technically got Ripple by mining.
There’s been some controversy concerning the centralization, or decentralization, of the Ripple. Some say that it is centralized, while the company claims to be decentralized. They have even faced some lawsuits that are probably going to interfere with the rising popularity of this currency.
Ripple claims that XRP is more transactional, functional and decentralized than both, Bitcoin and Ethereum. David Schwartz, the CTO of Ripple Inc., stated on the company’s website that the setup of XRP’s validators makes the ledger more resistant to bad acting than Bitcoin.
XRP transactions are significantly faster than that of Bitcoin. While Bitcoin transaction can last up to 10 minutes, XRP transaction takes around 5 seconds.
Ripple currently works with the biggest financial institutions in the world and its plan is to power the whole financial sector by allowing us to make instant transactions at just a fraction of current cost. Ripple can easily process around 1500 transactions in a second, whereas Bitcoin can handle around 7. What makes Ripple even more trustworthy is the fact that a huge number of banks are currently working with Ripple on implementing their technology.
Since December 2017, XRP has seen a decline of 40 percent and is down 89 percent from its peak.
Even though it is expected that the price of XRP will rise, cryptocurrency enthusiasts are still not so fond of the idea that a bank or a company regulates the cryptocurrency.
XRP is a long-term investment. With the prices rising, it definitely seems as a smart investment at the moment. More investors are becoming aware of it, and its trends and an increase in price is expected. Just in the first half of 2017, the price of XRP surged up to 4000%.