Can Ripple Effectively Rival Bitcoin and Ethereum?

JP Buntinx | August 21, 2017 | 2:00 pm
Can Ripple Effectively

Can Ripple Effectively Rival Bitcoin and Ethereum?

JP Buntinx | August 21, 2017 | 2:00 pm

There is still a lot of confusion regarding Ripple and their XRP token. Unlike cryptocurrencies such as Bitcoin and Ethereum, Ripple is not targeting the same market. More specifically, the company wants to make the financial sector more efficient using blockchain technology. Their Consensus ledger has received high praise from various partners over the years. Some people feel XRP may be able to rival Bitcoin and Ethereum in terms of success, even though the three assets are nothing alike whatsoever.

A lot of cryptocurrency users dislike Ripple and XRP, for obvious reasons. Bitcoin and other currencies are designed to rival banks instead of helping them. Many people feel the banking sector has profited long enough without giving anything substantial in return. With a growing global focus on digital solutions, financial institutions have to adapt or risk becoming obsolete. Embracing Bitcoin and Ethereum will most likely not happen anytime soon. That doesn’t mean the banks aren’t keeping tabs on what is going on behind the scenes at Ripple, though.

For some reason, people still assume XRP is a cryptocurrency. It has never been and it never will be advertised as such. XRP is the native asset of the Ripple ecosystem, which can be used to facilitate real-time transactions across national borders. There is no requirement for banks to use this asset, but it can be beneficial to them to at least consider it. The project certainly is making a lot of waves right now. In fact, the company has a lot of support from Asian financial institutions. That support will only keep on growing for the foreseeable future.

Ripple is a Force to be Reckoned With

Revolutionizing the financial sector won’t be easy by any means. The best chance of making it happen is from within the industry itself. This is why Ripple makes a lot more sense to banks compared to Bitcoin and Ethereum. It isn’t a decentralized cryptocurrency by any means. However, their Consensus Ledger this offers a small degree of decentralization through its validator node model. This concept is quite appealing to institutions dealing with cross-border payments on a daily basis. Funds can be moved instantly at very low costs. By using the XRP asset, these costs can be driven down even more. It is perfectly suited for financial transactions, more so than the top cryptocurrencies in their current form.

According to a report on The Street, Ripple is in a prime position to make big things happen. How much of a success that will bring to the company, remains to be determined. The project has a fast consensus model and doesn’t rely on a mining process to generate new coins. At the same time, most of the available supply remains in the hands of the company. Their XRP business model is entwined with the success of the company. One cannot succeed without the other, that much is evident. It is certainly possible we will see this company succeed in the long run. It may even outpace both Bitcoin and Ethereum based on market cap. Only time will tell.  

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  • CryptoLife

    Ripple is easily, the best long term investment opportunity of this century. Even if you weren’t fortunate enough to buy at 0.006 cents per XRP, the current value of around 0.16 cents will look dirt cheap in a few years!

    • João Do Feicebuque

      Except that because of the limited supply of coins, all of them being pre-issued, and the known rate at which the owners will dump them over time, max optimistic value is predicted to be less than $1, it is extremely unlikely to ever cross that barrier.

      • CryptoLife

        lol, this is the biggest pile of horse shat I have ever read. Get your facts straight and quit making up BS, troll!

        • João Do Feicebuque

          Guys, this is plain math. To reach $2, it needs a 100B market cap (way larger than bitcoin). And that’s ignoring the deflation from the 30 billion coins the leaving founder will be dumping on the market over time, plus the other hundred billion owned by the corp. Not impossible at all, but a risky bet, and 10x would still be nothing like the gains seen in Bitcoin.

          If you’re expecting it to be valued at, say $4000 in a decade, than you are completely out of your mind as that would mean a $200 trillion market cap.

          • CryptoLife

            Jed does not own 30 billion coins (check your facts before posting FUD please!).
            And there are only 100 billion coins total, so once again your numbers are incorrect. For XRP to reach $2, it would need a marketcap of about $80 billion, which is bitcoins current marketcap. You seem t Be under the false assumption that Bitcoin will always be number one, or that bitcoins marketcap will be stuck at current levels for the next few years. I guarantee you that neither of these two outcomes will be correct.

          • tAiNtED

            Please also keep in mind inflation and stock market crashes . . Then a sharp increase on cryptocurrency will be inevitable. . Cryptocurrency will not be the end of the banks, but perhaps the end of WallStreet..

      • JensGermany

        As with Bitcoin you will change your mind in a few years. But then it is too late for you

      • Anto

        Bet you feel stupid now

    • Lawrence Chang

      XRP is one of the worst coins out there… it has no use case and isn’t even required to be used by ripple’s platform, as stated in this very article.

      All of Joao’s arguments are valid – you didn’t respond to any of them because let’s face it you never thought that far. You fell for it.

      • CryptoLife

        Worst troll comment I have read so far. Your ignorance truly is bliss. XRP saves banks 30% more if the bank uses XRP. If they use Ripple but not XRP, they save money still, but 30% less. XRP will also be used for micro-payments (internet of things).
        Listen, only lame ass idiots are still going around spouting the same old BS that was stated above. Ripple and XRP need each other to truly be successful. Do you really think XRP would have a 10 billion dollar marketcap if it was all smoke and mirrors. Sounds to me as though you would be better off investing your money in mutual funds – where others can do the thinking for you!

        • Lawrence Chang

          First of all, I invite you to explain to me how it saves them 30%. That was stated in one YouTube video but I doubt you can provide a clear explanation.

          Second, you really think banks who make a less than 1% margin on their transactions are gonna use a currency that sees 20% fluctuations on a daily basis?

          Ever heard of a concept called risk management? It is suicide to take on that degree of volatility

          • Raúl E. Garrido

            You are talking what you don’t know.

          • Lawrence Chang

            Researched it pretty extensively already. Still waiting for a single XRP advocate to explain how it has value, and not by making claims, by actually explaining HOW.

          • emberins


          • Waheed Jaffer

            There is eight trillion, four hundred eighty-seven billion, seven hundred ninety-seven million, one hundred two thousand, four hundred USD in gold value world wide

          • CryptoLife

            Why the hell am I going to waste 30 minutes explaining XRP to you. Do what the rest of us had to do and spend a week researching it!

          • miguel

            You’ve posted almost a dozen times here and not once have you helped me understand how Ripple is useful. Seems like a total scam when nobody can defend it other than “you’ll be wrong, mark my words! argh!”

          • CryptoLife

            Mate, if you can’t see the value in XRP after doing at least a few hours of your own research, why in the hell would I waste my time helping someone who is so quick to call it a scam. Had you bought a few days ago, you woulfd have made a killing already. Let your arrogance get in the way, fine by me!

            1): XRP has been adopted by TechCrunch in a 100 million dollar hedge fund, of which will be denominated in XRP. So that makes XRP a store of value.

            2): Banks are already using XRP for cross border payments. Many nmore are in trial. So XRP is also a currency.

            3): XRP is a payments solution (think AirBnB, Amazon, etc.).

            Like I said, if you think its a scam, just leave and forget about it, what do I care. But Bloomberg, CME, the Head of the SEC, the Feds Faster Payments and hundreds of the leading banks around the world, disagree with you!

          • Chris garrido

            Can you help explain the difference in XRP and ripple I’m looking to make an investment in it but still a bit confused. Any help is appreciated. I work in one of the largest US institutions and I believe big banks will accept Ripple do to the fast transfer speed and cost savings. Am I on the right path?

          • Ryo Sakthanasait

            Dude, a year from $0.008, now Ripple is $0.269. It is been already accepted by many big banks in many countries. This currency seems last long potentially due to the main objectives that it acts like a central transaction between international banks across the world offering very low cost (transaction fees) and faster exchanging than any currencies, and most importantly is that it is a secure system and legal.
            Did you really do a research ?

          • Lalrus

            35x return is inferior to many other major captors in the market this past year… just rising tides

          • CryptoLife

            LOL, XRP is at $1. When you wrote this comment, it was at 0.25! Once again, people can’t think outside of the box and see the bigger picture.

            Ripple is the #1 Fintech company in the world. XRP is a digital currency created by Ripple, and used to transfer value across the internet, and across the world, for a fraction of the cost that banks charge (and are charged) today.While banks can use Ripples technology without using XRP to send funds cross-border, banks that do use XRP will see several benefits, including:

            1): Banks that use Ripples software will save 30% over today’s costs. Banks that use Ripples software but also use XRP, save an additional 30%, bringing the total amount saved, to 60%.

            2): Currently, banks are forced to maintain Nostro/Vostro accounts in every country that they choose to do business. This means that banks essentially have billions of dollars (millions of dollars for the smaller banks) tied up in accounts, not being used to make money). However, banks that choose to use XRP will no longer need Nostro/Vostro accounts, allowing these banks to spend that money on other useful ventures (this point is probably more important to a bank, than the extra 30% in savings).

            3): Banks that use XRP will be able to complete transactions within 4 seconds, compared to 4 days with current technology.

            Ripple started out by focusing primarily on Banks, however, they recently stated that during 2018, they will be heavily focused on all things Payment related, and expanding XRP’s use case will be a priority.

            TechCrunch recently announced a 100 million dollar hedge fund which will use XRP as its native currency. We expect this to be the first of many XRP Hedge Funds.

            We are also expecting a major announcement before the end of 2017 (basically, next week). Ripples Chief Cryptographer (who is a genius) tweeted last week or so, that Ripple will be announcing two new partnerships, both of which are household names, and both of which will use XRP. While many of the media outlets are reporting that XRP’s recent surge in price is due to a rumor that Coinbase will be adding XRP, the truth is, that the recent increase in XRP is due to this upcoming announcement.

            I highly recommend that you read some of the articles that have been published by Hodor. He understands Ripple better than most: https://xrphodor.wordpress….

            While most digital currencies gain their value from the likes of you and I buying the currency, Ripples advantage is that it not only relies on you and I for price increases, but Market makers, Payment providers, banks Hedge funds, etc. – will all stock up on supplies of XRP so that they can send payments over RippleNet.

          • CryptoLife

            lol, banks don’t take on any risk with volatility. Market Makers take on the risk! You just proved that you know absolutely NOTHING about the Fintech market. Go home.

          • Lawrence Chang

            They don’t take on any risk by owning XRP while transacting with it? What?

          • CryptoLife

            NO, they don’t. Like I said, research Ripple, research XRP and research Market Makers.

          • Lalrus

            Wait wat LOL

        • Lawrence Chang

          I also invite you to explain why ripple NEEDS xrp to be successful, and even if you can do that, go ahead and explain why the simple fact that they need each other means that they will in fact succeed.

          • CryptoLife

            damn it, if I had a dollar for every time I had to tell some FUD talking Ripple hater why XRP is so crucial to Ripple, and vice versa. If you really give a sh_i, do some research. If you don’t, then go bug some other currency that actually interests you. Fuc_ing jealous traders, nothing worse than that!

          • Lawrence Chang

            Already done the research… it’s not needed, just a way for ripple to raise additional funds from foolish FOMOers. I notice that you still haven’t given a single iota of evidence or analysis as to why XRP should be worth a penny. Because you can’t. Sad.

          • CryptoLife

            Mate, I could spend a week giving you facts and reasons as to why XRP and Ripple are the investment of a lifetime, but honestly, it took a week or more of my life to figure it all out and decide to invest in Ripple. You have a shit attitude towards Ripple, so why the hell would anyone offer such wisdom to you. It won’t happen because no one wants you to EVER make money from XRP. By the way, you must be calling a whole lot of people pretty much ‘idiots’, since 10 billion dollars has gone into XRP and given it the third most highest marketcap of over a thousand options. Do you really think that much money is invested on a whim, or a guess!

          • Lawrence Chang

            of course money is being invested on a whim in this market… was XRP your first coin or something? LMAOOOO

            i gave it a chance bruh like i give every coin a chance. nothing going for it sorry

          • CryptoLife

            Bruh, WTF. I’ve invested in plenty of coins, and I research each of them thoroughly beforehand. Ripple is the best investment for a long term play. Since I can guarantee that I have researched it far more than you, I’ll go with my research and not your opinion.

          • CryptoLife

            lol, I’ve been reading some of your comments. You have to be either the dumbest SOB ever, or the unluckiest. Ripple increased 400% since you wrote these comments. How does it feel to look like a jackass. Wait, you don’t look like a jackass, you are a jackass.

          • Lalrus

            Bro you really make results-oriented arguments based on recent price movement?


          • CryptoLife

            Actually, that is BS. I made the same argument when XRP was at 0.20 and you were being an ignorant douche claiming all sorts of nonsense. Your type are a dime a dozen in the crypto world. Face palm, what are you, 5!

        • Riemer Kramer

          You might be right. But as long as you (all of you!) keep shouting and screaming without any respect, all your comments are without any value for serious investors with brains. So do me, yourself and others a favor and stick to the content!

          • CryptoLife

            I have been researching Ripple for five years now, and ever since the start, I hear comments from these crypto purists who hate Ripple for no other reason than the fact that they are hepling banks update their technology. If they came at it with actual facts instead of FUD and BS, that would be one thing, but they say the same old BS over and over, without any background knowledge on the subject. Eventually, it gets old, especially after the 100th comment with the same content.

      • CryptoLife

        wow, some of you people are as dumb as nails. XRP has no use case. I will find your comment in five years and rub this in your face, you have my word! By the way, banks do not take on ANY risk with currency volatility. Market makers take on the risk, so banks couldn’t care less about the price swings. Maybe if you did some research and educated yourself, you’d stop making idiotic comments.

  • trumpsahead

    I’ve rippled before, and I’ll ripple again; there’s no stopping me.

    • Flapjackson

      I think I’m gonna ripple too.

      Ripple on, man!

  • Ming

    Another bubble in progress… please watch out and don’t get burned

  • I keep hodling until it reaches $10!

  • Joonas Ryökkänen

    Wouldn’t call bitcoin that decentralized either anymore as majority is in the hands of chinese miners.

  • Riemer Kramer

    Anyone serious comments on LISK? Positive trend last few days. Hold some, but doubt wether to buy more.

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