A lot of people in the cryptocurrency markets are looking at Ripple as the next big thing. The alt coin has been in the news for some time as a major digital currency. Still, the value of the coin is much lower than those of other coins. It is currently trading at $0.63.
Cryptocurrencies and Speculation
Bitcoin was developed as a cryptocurrency that would be the alternative to paper currency. Developers believed that it would be used for daily exchange like fiat money rather than speculative gambling.
Unfortunately, the currency has ended up becoming a speculative commodity in the market. If you check the Bitcoin prices on a daily basis, you would note that it is either sharply rising in value or dipping down in price. Daily fluctuations in the Bitcoin make it difficult for it to be used as normal currency.
Normal currencies require stability so that people can go about their business without worrying too much. If the price of your meal costs $2 dollar one day, $5 the next day and $1 on the third day, you would find it very difficult to plan anything with your money.
Fluctuations in digital currencies make them unlikely to be used for daily transactions.
Ripple Price Stability
Ripple is mainly advertised as a coin that facilitates international exchange. The price has been more or less stable despite some fluctuations. The coin has not been designed to be a speculative commodity. The main selling feature of Ripple is its price stability.
The majority of Ripple coins in circulation are controlled by a single company.
This gives the Ripple a good position to be adopted by money exchanges and the digital coin has already gained much attention from global money transfer networks.
Ripple had built collaborations with money transfer companies like MoneyGram, Arrington XRP Capital and American Express.
Much of the price appreciation in Ripple came about due to its partnerships with established brands rather than speculative buying like other cryptocurrencies.
Ripple Specialization in Money Transfer
The dilemma of most companies is that they try to grow into every market and end up losing their share in all. Bitcoin and Ethereum are more generalized currencies and failed to attract strong backing of established business.
Ripple went in a different direction. It was specifically designed to be useful for cross-border transfers from one country to another. The speed, accuracy and stability of prices ensure that it is used for its intended purpose.
Ripple Is a Good Investment
At its current value, Ripple is a good investment option compared to other currencies. Analysts believe that the coin is severely undervalued at $0.63.
The coin was expected to be added to the Coinbase exchange in January just before Coinbase CEO announced that they won’t be adding any new currencies to their exchange.
Many believe that the price would go up once investors get easier access to trading Ripple. Even a slight increase of $1 would more than double the value of the currency and give huge returns to the investors.
If you are looking to diversify your cryptocurrency portfolio, then this currency should be part of your investments.