I hear a lot of people promoting Ripple. That concerns me and I have the urge to shed some light on Ripple.
More then 75 banks already joined the Ripple platform. Great news, right? Yes for the banks. Not really for us.
Ripple is not open source. It is not decentralised. It is just a private and centralized blockchain tool for banks to have cheaper and faster transactions. With the benefit that it stays business as usual for them.
Just some logic. Banks are not obligated to use Ripple's (XRP), but if they do the transaction costs will be lower. With that in mind. If banks use XRP between them to do transactions and the transaction fees are payed in XRP. Would it be in their interest that the Ripple price became a 100 dollars or even 1000 dollars? Would they not flood the market with Ripple's to control and manipulate the price of Ripple? In a way that the transactions cost for themselves stays at a minimum and make more money because of it? Just ask yourself this questions. As @valderrama points out in his reply beneath my post. When XRP starts to get scarce, Ripple will flood the market with XRP and that will push the price down.
I am not saying you should not invest or claiming you could not make a profit. But why support a system where the main reason is not to make things better for us all, but to let banks earn even more money. Banks will control and manipulate the Ripple supply and there will be no free market price. They can do this as there will be a total of 100 billion Ripple's. Half of it retained by Ripple itself and the other half for the biggest part owned by banks. You do the math. This is how I see it and hope that I shed some light on what Ripple from my point of view really is.
Thanks for reading.
You don't seem to have the whole picture.
It's not even mandatory for banks to use XRP for their transactions. I've written a few posts about Ripple and their XRP. I hope it will rise to even $1 but I doubt it ever will. Banks do not need to use XRP so why would they. Why would we as investors even buy XRP? Why would we even use XRP?
Another known fact is that Ripple have millions of XRP in escrow. Whenever XRP will become scarce on the market they will take some XRP out of escrow to make it less scarce. This will effectively lower the price of XRP again.
So do I think XRP will rise to $10 or even $1? No I do not see that happening. Is Ripple a legit company doing excellent work? Yes most definitely. But their XRP is another entity.
If you research Ripple you'll find that they have problems explaining XRP themselves. Take a look at all of their marketing material and I'll bet you'll find it even 5% of it speaks about XRP.
You have a valid point. I did not wanted to make the story to complex, but probably it would be better if I mentioned it so it would be more clear why I wrote what I wrote. You gave me a second chance to shed some extra light. Thanks. :)
I am aware that banks do not need to use XRP, but even if the banks do not need to use XRP, it is still needed for transactions to happen. I expect that the banks will prefer to use XRP because the transactions will cost them less when they do use XRP. So it is still in their interest to keep the price of XRP low. We see that the markets or the value of money is manipulated by the central banks. I expect nothing less from the banks when it comes to XRP. Beside the banks, as you also point out, Ripple itself will flood the market with XRP when it starts to get scarce. There is 100 billion XRP available in total. So they easily can. If I am misinformed about what I wrote you now, then you are completely right and I do not have the whole picture. :)
I made some edits in the text and put in XRP instead of Ripple and added that the banks do not need to use necessarily XRP to make my point better understandable. Thanks for your response. I appreciate it.
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Good points in this article. I was about to post a similair post. The quality coins are here to stay and it's like buying in at the S&P 500 50 years ago. Cryptos will fall and rise at a more rapit phase any investment market has ever seen. Just hold (literaly) and enjoy the ride. We do need to look better at the insights of every coin. What team is behind it, is there any management. How strong is the product, is there any product at all? This is quite an interesting website I found: https://www.coincheckup.com The site is my go to place for crypto investment analaysis and indepth coin research. On: https://www.coincheckup.com/coins/Ripple#analysis For a complete Ripple Investment research report.