Bitcoin

Ripple still doesn’t raise his head. Time to throw in the towel?

Bitcoin rides the crest of the waves, but Ripple is still in the depths of the abyss. The years go by, the crypto winter is already a memory and Ripple still doesn’t raise its head. Bitcoin is nearing its all-time high, but Ripple is far from reaching its own. It takes many years or a wonder how fast we go. Shall we keep waiting? Or is it time to throw in the towel?

Ripple has always sparked a lot of controversy in the crypto community due to its high level of centralization. Personally, I don’t mind centralization. Apple is centralized, but that doesn’t mean it’s a bad investment. One could say that Binance Coin is a centralized cryptocurrency. But it doesn’t create the same discomfort as Ripple. Why? Well, because Binance Coin was a better investment. In other words, if the investment makes a profit, investors are happy. His style of government takes a back seat.

Read on: Ripple (XRP) could reach $ 10,000, according to a billion dollar forecast published in Forbes

Ripple still doesn’t raise his head. Time to throw in the towel?
Ripple still doesn’t raise his head. Time to throw in the towel?

Bitcoin has proven to be a much more reliable investment than any other cryptocurrency. This is not fanatical maximalism. It’s just a matter of solidity. The age, capitalization and size of the community need to be considered here. In other words, Bitcoin is the most established option. Hence the best investment in the crypto room. Altcoins, on the other hand, are much less secure terrain. Bitcoin is not a 100% safe investment due to its high volatility. In addition, we also have the problem of regulatory uncertainty, lack of liquidity and poor transparency of the exchanges. It’s a risky asset, but many of us like to take this risk because we feel like we have solid foundations. In other words, Bitcoin has a future.

In a distant second we could mention Ethereum. The Ethereum community is very big and hardworking. For that part, we could speak of Ethereum with respect. However, the complexity of the Ethereum universe implies a sea of ​​uncertainty. In the case of Bitcoin, the project is clear. Bitcoin is a store of value. Many say it is a payment method, but this debate has lost a lot of power over time. It is already evident that Bitcoin is a speculative asset mainly used as a store of value. The true nature of Ethereum, on the other hand, is much more difficult to decipher.

Well, it’s a smart platform. The decentralized supercomputer. But, What does that mean financially? Is Ethereum a Good Investment? In any case, the Ethereum project is a bit more complex. You can have a future. However, it is difficult to know the exact shape of this future. From a financial point of view, this implies uncertainty. That said, a higher risk.

We could talk about tether, but tether is not an investment in itself. Tether has a large market cap. That speaks a lot for the size of your network. Personally, the Tether project is not my dedication due to its lack of transparency. The team behind the project doesn’t inspire a lot of confidence. However, this is a topic for another time. The point of Tether and the other stablecoins is their great utility. They are digital versions of the dollar. Its great popularity is understandable.

Read on: Ripple partners with Santander for international payments

Now XRP from Ripple. It is an unstable cryptocurrency intended to serve as a liquidity instrument for international currency exchange. For example, bank X wants to send money to bank Y in another country. These are two countries with different national currencies. Bank X then buys XRP in its local currency and sends the XRP to the recipient. Bank Y then sells the XRP received in local currency. Ready. End of transaction. We are talking about a new and improved SWIFT system.

But why invest in Ripple? It is not a store of value. It’s just a bridge between currencies. It is to be used, it is not an asset to be kept. Ah, but XRP obviously serves two purposes. One is the code as an instrument. And the other is XRP as a financing mechanism for Ripple. In this sense, XRP works as an unregistered security. The Ripple company has a lot of XRP in their coffers and sells it to fund itself. They are like company shares. They do not give voting or property rights, but the money received is used by the company. The investor lends itself to this because they expect the price of XRP to rise as the company grows.

Binance Coin, the cryptocurrency of the Binance exchange, also acts as unregistered security. And it’s not a secret to anyone that Binance uses this currency to fund itself. In fact, this is the only function of this cryptocurrency. However, there is a very important difference between Binance’s Binance Coin and Ripple’s XRP. Binance cares about its investors. Ripple takes advantage of them.

At Binance, holders of Binance Coins have certain advantages. But it’s not about a few discounts here and there. Binance uses all of its machines to increase the price of Binance coins as a constant advertisement and planned burning of tokens. All of this to raise the price for the benefit of investors. This could be called positive centralization. Binance coin holders are happy because their investment is thriving.

What is Ripple doing? Ripple sells XRP until it can’t anymore. Reduce the price with massive sales. And wave your middle finger to your investors. Did you hear your CEO talk about it? He is outraged, offended and upset by the claim. Use cheap arguments to justify the massive sales and minimize the problem. The company is not responsible for the price. It’s that simple. Take the money and go. He doesn’t care. Your priority is obviously the company.

Read Next: One of Ripple’s co-founders spends a fortune installing cameras in San Francisco

JP Morgan has just launched a stablecoin that aims to solve the same problem that Ripple is trying to solve with its XRP. JP Morgan is the most powerful bank in the world and already has a network of more than 400 banks. Is Ripple a Real Competition?

I’m afraid that in the case of Ripple, we have an example of poor centralization. Ripple obviously doesn’t care about XRP holders. He doesn’t shop. Tokens are not burned. He makes no effort to raise the price. It doesn’t encourage the price increase. He only sells to continue funding the company. To be honest, it’s no longer worth the wait. Unless this policy of massive sales and utter indifference to XRP owners changes radically, XRP as an investment is insane. In this case, it is best to throw in the towel and get out of the ring.

The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.

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