We recommend the best products through our internal review process and may receive compensation if you visit partners we recommend according to our advertising disclaimer.
Cryptocurrency marketing has become a game-changer for individuals in the online marketing space, including merchants and financial institutions. The benefits of cryptocurrency transactions do not compare to those of traditional banking. One of the most significant benefits that makes it very different from conventional banking is the relative ease of transferring money between two parties. It is blockchain technology that makes this movement in cash simpler. This simplified money transfer is an attractive benefit to traditional banks. Conventional wire transfer is costly and time-consuming.
A little knowledge into how the current system operates and how Ripple/XRP changes everything will give some insight. XRP is a game-changer for the banking industry, despite its current legal problems. We’ll be talking about Ripple, XRP, their benefits, and expectations in the following.
What is Ripple/XRP?
Ripple is a software developed by Ripple Labs Inc to settle payments carried out online. XRP is Ripple’s cryptocurrency token, similar to Bitcoin. According to Ripple.com, XRP is a digital asset that can exchange money between two currencies without a middle-man like the Society for Worldwide Interbank Financial Telecommunication (SWIFT). SWIFT operates with financial institutes and banks for international money transfers. As explained on Investopedia.com, Ripple’s digital currency, XRP, acts as a bridge currency to other currencies.
Nick Sexton of My Digital Money said that Ripple is the cryptocurrency for banks. It was developed to eliminate the difficulties that add to the cost of money transfers.
Notable Differences between Ripple and XRP
There’s a misconception about Ripple and XRP being the same. Ripple is a software development company that developed the Ripple consensus ledger, and anyone can access it since it is open and doesn’t require permission. Banking institutions and other institutions can integrate the Ripple protocol into their operations. It was developed to serve as an option to make transferring money less complicated for the banking system.
XRP is a cryptocurrency token that can be used as a payment method. Think of one unit of XRP as a one-dollar bill.
Is Ripple/XRP Cryptocurrency worth considering as an Investment?
Yes, at a fee of under one cent, Ripple is less expensive than using SWIFT to transfer money and has a processing speed of five seconds. Ripple created XRP to eliminate complications associated with moving money internationally by reducing many extra expenses.
Unlike other cryptocurrencies, XRP is connected to a privately held company. Banks only use XRP, but investors can still trade the tokens. XRP is one of the least expensive and oldest crypto coins, making it more appealing to investors.
Will Ripple/XRP Recover?
Ripple XRP operates under a centralized system, differentiating it from the others like Bitcoin, Ethereum, and others. It is closely associated with financial institutions, investment companies, and banks worldwide.
Near the end of 2020, the Securities Exchange Commission (SEC) accused Ripple Lab Inc. of selling unregistered securities. Despite the lawsuit, they’ve remained firm and have plans of launching a place for financial institutes to trade digital currencies.
Long-term forecasts suggest that XRP will have an average rate of $1.65 and be over $2 at the end of the year. Crypto expert Nick Sexton said that someone in the banks would push for Ripple because it saves them from spending more money. This is attached to the fact that Ripple is trying to create a path for virtual currency in the financial world.
Ripple hopes to introduce more ways to utilize XRP and make major improvements to global financial transactions. Despite the SEC lawsuit, it is expected to remain a viable cryptocurrency because it is less costly than the current means of monetary exchange.
Crypto investing made easy. Sign up for our free course and guide. Click here.
