The world of cryptocurrencies is always in a state of change. New tokens are introduced almost daily. The market is volatile. Many factors are involved when making a decision to invest in cryptocurrencies. Lately we have been asked by many readers, “Should I buy Ripple?” Ripple (XRP) is definitely a digital token that you should keep your eye on. We’re going to lay out a few reasons why you should think of adding this cryptocurrency to your portfolio.
About Ripple (XRP)
Ripple is recognized on cryptocurrency exchanges by the designation XRP, and that’s how we’ll mainly refer to it in our discussion. XRP is classified as an altcoin, meaning simply that it is an alternative to Bitcoin. While Bitcoin remains the world’s most popular digital currency, many altcoins like XRP, Litecoin, and Ethereum have emerged to present a challenge to Bitcoin.
At the present time XRP is the third-largest cryptocurrency in the world. Yet, despite its impressive debut and solid traction in the crypto market, it remains a somewhat undistinguished asset. Fewer people are familiar with Ripple than altcoins like Stellar or Litecoin. This is actually a good thing for investors. The lack of attention received by XRP has kept the price comparatively low in relation to other cryptocurrencies.
What makes Bitcoin and XRP different is that Ripple is both a platform and a digital token. The open-source Ripple protocol is one that many people believe has the potential to help financial institutions accomplish faster and cheaper financial transfers. RippleNet, the backbone of XRP, is already being used by banks and other money service businesses to accomplish global transfers of money. This is important. Many digital tokens claim that they have the potential to benefit financial service institutions. Ripple is actually doing that in a big way already.
Now, consider this. As of February 2019 you can still get XRP for about $0.30 per token. It’s pretty easy to see why investors are bullish on the potential of XRP, but we’ll get to that in a moment.
Jed McCaleb was the pioneering mind behind Ripple Labs Inc., the developer of the XRP platform. The developers describe Ripple as a real-time gross settlement system. The platform is also distinct because it supports fiat currencies as well as digital tokens. It can even support the exchange of frequent flier miles. The versatility of XRP is what makes it so attractive in the cryptocurrency world, and this it the reason people want to know, should I buy Ripple (XRP)?
Reasons You Should Think About Buying Ripple (XRP) in 2019
There is no doubt that 2018 was a brutal year for cryptocurrencies. After a bull market in 2017 which saw Bitcoin soar to the stratosphere, the market came crashing down in 2018. Bitcoin and every other digital token of note sustained severe losses, and most have not recovered through the early months of 2019.
Before the crash, XRP was being touted as the next big thing. There were cryptocurrency analysts that were predicting XRP would become the next Bitcoin or surpass it. Much of the hype around the token was generated by its potential for real-world applications. Now, here we are in 2019 and the hype around all cryptocurrencies has dissipated to a large degree. Some even sit back and say they told us so.
Smart investors are still high on XRP, and with good reason. The market tumble has in no way affected the potential of Ripple as a useful financial protocol. Think about the brutal stock market crashes the US has endured. When Walmart stock famously crumbled in the wake of the stock market crash on October 19, 1987, the retail giant’s founder Sam Walton made a famous quote. Having just lost billions of dollars in stock value Walton told reporters, “It’s only paper.”
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There is a lesson in Sam Walton’s take on market crashes. Walton knew that Walmart’s business model was sound. He knew that nothing about the model was going to change because the market crashed. He also knew that the price of WalMart stock would recover. He was right on all accounts. The stock did recover and Walmart is among the world’s biggest retailers. The company has even expanded its presence to include online sales.
The same can be said for XRP. Nothing about the cryptocurrency market crash in 2018 has changed the underlying potential of the platform. Everything is still in place for this cryptocurrency to make tremendous gains.
In 2017 the price of XRP increased by a massive 28,000 %. Yes, that number is correct. This is one of the most difficult things traditional investors must come to terms with in the cryptocurrency market. It is a market that has show the capability for massive growth. At the same time, the market can also turn on a dime and see the values of tokens plummet. When that happens there is little that anyone can do except hold on for dear life. Cryptocurrency investors have even coined an acronym for that very thing – HODL.
Our opinion is that there are many positive factors that could lead to a recovery with XRP. These include an escrow of 55 billion XRP tokens that have been set aside by the company. These tokens are released from escrow according to the terms of a smart contract that releases $1 billion XRP each month for 55 months. This gives the token a high amount of liquidity, and it also encourages the use of XRP.
It is also true that XRP has more credibility with investors because of the corporate partnerships that it has established. These partnerships include banks and international financial institutions which have started to work on long term applications using the XRP platform. The acceptance of XRP by other financial institutions is only going to increase the likelihood that XRP will increase in value.
XRP is a digital token that you should definitely keep you eye on in 2019. When someone asks you, “Should I Buy XRP?” you can tell them with confidence that the answer is yes. XRP seems to be highly undervalued compared to its potential for growth.