Ripple (XRP): Price Prediction, Where To Buy, Is It A Good Investment?

Ripple positions itself as a blockchain-based alternative to the SWIFT system that is being used by banks and other financial institutions to conduct cross-border transactions. The blockchain ecosystem is powered by its native token called XRP. 

This article discusses what Ripple is, how it works, the XRP token, price prediction for the coming years, and finally analyzes whether it is a good crypto investment. 

So, without further ado, let’s get started. 

What is Ripple?

Ripple is a blockchain network and cryptocurrency ecosystem that is developed and managed by a single entity called Ripple. Instead of positioning itself as an alternative to traditional currencies, XRP wants to act as an intermediary to allow global trade between any unit value, such as cryptocurrencies like Bitcoin or other fiat currencies like the euro and dollar. 

Ripple works closely with banks and financial institutions to establish a blockchain infrastructure that can facilitate as many transactions as possible and run them simultaneously as fast as possible. 

The blockchain project’s main competition is the aging SWIFT system, which it seeks to replace with a much more efficient and sustainable cross-border currency exchange network. 

How Does Ripple Work?

Even though Ripple is touted as a blockchain network, it does not particularly run on a blockchain. Another fact is that Ripple does not rely on mining to issue new units of XRP or to validate transactions. 

Transactions on the Ripple network run through validating servers, which compare the information they receive and process it on a common ledger. This way, the blockchain can process transactions at much faster speeds by expending less energy and computing power compared to other networks. 

Ripple validators use a consensus mechanism called HashTree, where they reach consensus not by comparing all the data, but a single value of the data that is derived by summarizing all the information contained in the Ripple ledger. These validating servers are either run by individuals or by banks and institutions. 

What is XRP?

XRP is the native cryptocurrency of the Ripple network that is used to transfer funds across borders at a low cost. The token can transfer currencies trustlessly and almost in an instant. The goal of XRP is to serve as a bridge currency to offer banks and financial institutions a more cost-effective way to exchange both crypto and fiat currencies. 

XRP charges a very nominal fee for transactions and can even settle payments quickly. Another fact is that XRP is highly scalable and can perform 1,500 transactions per second, making it one of the fastest blockchains in the space. It is a carbon-neutral and energy-efficient cryptocurrency. 

XRP Tokenomics

At the time of writing, XRP is trading at $0.50 – down 1.3% in the last 24 hours. With a market capitalization of $27.55 billion, XRP had a 24-hour trading volume of $659 million. 

There will be a maximum supply of 100 billion XRP tokens, out of which, 54.43 billion XRP is currently in circulation. 

XRP recorded its highest price in January 2018, when it was trading at $3.40. Meanwhile, the lowest price paid for XRP is $0.00268 recorded in May 2014 when it was launched. 

Is Ripple A Good Investment?

Ripple is unlike any other cryptocurrency or blockchain project in the space. Rather than being a replacement for the traditional fiat system, Ripple promotes itself as an evolved version of the global remittance network that banks and traditional financial institutions can be a part of. 

Ripple uses its native XRP token to perform cross-border transactions between individuals and entities in fiat and other cryptocurrencies. Another unique aspect of the project is that it is not completely decentralized. Even though the network’s validators are decentralized, all decision-making is made by a single, centralized entity called Ripple. 

All things considered, I can surely say that Ripple is a credible cryptocurrency project and the XRP token has far more utility than pretty much any other cryptocurrency in the market. However, legal issues have curtailed the project’s progress, which will come to a close later this year. 

As is the case with every other cryptocurrency, it is important to do your research before investing in them as the prices of these assets can experience extreme price fluctuations. Always remember that you should only invest money that you can afford to lose.