In the world of cryptocurrency, Bitcoin is known as the king. Bitcoin is the most expensive cryptocurrency in the world, the most widely-traded, and the most popular topic of discussion among fans of blockchain technology. However, Bitcoin's not the only kid on the block; and if you ask some, Bitcoin is flawed.
Many people are starting to look towards Bitcoin mining alternatives for their next investment. One of the most popular cryptocurrencies to be made in recent years is Ripple, and it's an investment that has become pretty popular among bankers.
Also known as XRP on trading platforms, Ripple is making waves in the blockchain world. If you ask analysts, there's no question about whether or not Ripple is a great investment. It's a must-have for your portfolio, and we'll explain why right now.
Bitcoin. Bitcoin Cash. Litecoin. Bitcoin Gold. Dogecoin. These are all names that had gained "flash in the pan" notoriety thanks to online forums and hearsay. Forks happened, hype happened, and then most coins just ended up falling flat.
Ripple has been around as a payment method since 2012, making it one of the oldest cryptocurrencies around. Despite its age, it hasn't really seen the "ballooned value" of other super-hyped cryptocurrencies. This means it's less likely to have a bubble burst.
It doesn't use proof-of-work to keep things flowing.
Bitcoin's biggest flaw is the fact that its proof-of-work demands make it increasingly difficult to have a transaction process. As Bitcoin transactions become increasingly common, the time it takes to actually work through the algorithms increase. This makes Bitcoin a hassle that will only get worse as time passes.
Ripple uses consensus ledgers to perform transactions. This translates into less work for processors, less problems with design, and a relatively steady transaction time.
Ripple is owned by a centralized company, and that means there's more control over Ripple's value.
Bitcoin is one of the only fully decentralized cryptocurrencies out there, and to a point, that's both a strength and weakness. Ripple is a centralized decentralized currency that's owned by Ripple Labs.
No one controls Bitcoin, which means that it can easily have problems caused by third parties. Since it's not really supported by any particular group of people, that means that "fixing" Bitcoin isn't possible. Should this cryptocurrency have a major attack, it could easily be destroyed.
Ripple has a centralized group that works on keeping its value stable and ensuring its success. That kind of backing means a lot in the world of crypto!
Banks love Ripple.
If there's one sign that Ripple is a great investment, it's the way that banks use it. Ripple isn't just a cryptocurrency; it's a transaction protocol that streamlines cash transfers between banks. This means Ripple has real-world applications.
Banks have started to use Ripple technology as a payment and money transfer method between each other. Dozens of banks already use Ripple as a safe, secure way to transfer money. These banks include Axis Bank, Star One Credit Union, MUFG, and Cambridge Global Payments.
It's still affordable, but has serious potential.
Bitcoin's price is no longer the pennies or dollars that it once was. Right now, it's possible to get Ripple coins for a couple of bucks, or even pennies. That's not a bad deal.
One has to remember that Ripple's revenue had grown by over 28,000 percent last year. It's very likely that Ripple will continue to grow this year and next—even if growth isn't slow.
The potential for Ripple's growth is definitely pronounced, and that means it could make a huge difference to your portfolio. One of the reasons why Ripple is a great investment deals with its potential cryptocurrency-style high returns without the high costs.
Let's say that Ripple has a relatively slow growth year and its value only rises by an average of 100 percent (for cryptocurrencies, that's low growth). That still means your portfolio doubles. This makes it a great investment for people with small budgets that want to have high returns.
It's got a seriously large market cap.
When you want to invest in cryptocurrency, you really have to pay attention to market cap. If your crypto has a small market cap, it could end up fading out of existence due to underuse. That's not a good thing!
Ripple's market cap size suggests that it won't be left by the wayside, and that means it has staying power that gives it an advantage other coins won't have.
There's something to be said about having cryptocurrencies that have their own PR department too.
Ripple isn't an anarchic, decentralized coin. It has a company that backs it and helps promote its use. One of the perks of having a company working on the promotion and cultivation of a cryptocurrency is the public relations aspect of it.
Just like with any other company, Ripple will have a department dedicated to improving their product's reputation. For investors, this means that they will have a team of people promote the currency and its use to the right people, and also keep it in the public eye.
It potentially could be recession-proof.
We are definitely headed for a recession sooner rather than later. Bull markets can't last forever and policies have made serious trade problems arise that could further exacerbate issues.
A lot of arguments have suggested that blockchain is recession-proof due to its decentralized nature and the fact that people are already using it as a value container.
Ripple has low transaction fees, too.
One of the biggest issues with cryptocurrencies is the fees. It costs a large chunk of change to actually spend them. Ripple's fees are insanely low compared to most other people out there.
By keeping the cost of transfers low, Ripple makes itself a more appealing investment item—and a more competitive money transfer technology. This, in turn, gives it a better long-term prognosis.
The biggest reason why Ripple is a great investment deals with its bank transfer technology. It's starting to become increasingly evident that Ripple's tech is poised to become a standard part of bank money transfers as people demand faster transfers than ever before.
Google became the standard for search engines. Facebook became the standard for social media. Could Ripple be the next tech company to become an institution in the world of money transfers? Potentially—and getting in on "the ground floor" could make you very wealthy.