The open-source nature of blockchain technology has allowed developers to create a wide range of new cryptocurrencies after bitcoin’s inception in 2009.
Ripple is a payments protocol and a cryptocurrency that were created by San Francisco-based Ripple Labs in 2012. Ripple Labs is a venture capital-backed startup that has develops global payments solutions for financial institutions.
Ripple (XRP) is currently the fourth highest cryptocurrency in the market by market cap at $8 Billion.
While ripple has grown into one of the most valuable digital assets in the market and has been around for much longer than most of its counterparts in the top ten cryptocurrencies, a lot of people in the bitcoin community are yet to invest in ripple.
A cryptocurrency’s supply structure has a big influence on its price. Hence, it is important to understand how the supply for a specific currency is managed before investing in it.
All ripples have been created, and the total supply of coins is 100 billion. Around 38.3 billion ripples were in circulation. The rest are still held by Ripple Labs. On May 2017, Ripple Labs locked up over half of the supply of ripple (55 billion XRPs) and will release one billion ripples into the market each month for 55 months. The high number of ripples still held by the company was a major point of concern for ripple holders and potential investors. These concerns have now been addressed. Now making it a more acceptable investment coin.
Reason why I would invest in Ripple
1. When we talk about money, we think about bank. Unlike other cryptocurrencies in the market, Ripple really spends time to focus on building a strong foundation & relationship with banks. As at April 2017 Ripple added Ripple is adding 10 new banks and financial services providers to what it’s now calling its “blockchain network”. The new partnerships find Ripple showcasing its reach and influence. New members include MUFG (Japan), BBVA (Spain), SEB (Sweden), Akbank, Yes Bank (India), Axis Bank (India), SBI Remit (Japan), Star One Credit Union (US), EZ Forex (US) and Cambridge FX (Canada).
2. The price goes up & down everyday but the value is on a bullish attitude. Same in the stock market, there are always up & down in prices everyday because of many reasons, but in that chaos there is steady growth because Ripple has good value, outstanding management teams and leadership.
3. Future mainstream integration of Ripple. And Ripple is a channel that allows secure, fast currency exchange, Ripple relies on its Interledger Protocol to send money between individuals, which fixes a lot of problems in currency exchange,including sending and receiving money between banks and overseas.
It’s also a win for corporations. Ripple has tremendous support from the financial community, mainly because it saves banks money. Currently, if a bank is using Ripple, it saves $3.76 per payment. That is a cumulative saving of $564,000 a year.
We are in the thick of a digital currency gold rush, and promising currencies like Ripple are going to receive more investors in the coming months. So I would invest in Ripple today.