The successful launch and impressive performance of bitcoin opened the gates to many other digital currencies. The whole world was enthusiastic about cryptocurrencies, save for a few that have been resisting this great innovation of securing people’s privacy as well as speeding up transactions. Among other coins that followed bitcoin was the Ripple, simply referred to as the XRP.
Ripple currency’s primary objective was to free people from the chains of financial institutions where one had to submit all personal details and then wait for days before getting their transactions confirmed.
The name Ripple refers to both the currency as well as its network in which it is transferred. With this coin, investors are now able to transact vast sums of money faster and with close to zero transaction fees.
This currency has enjoyed steady growth since the time it was launched. Several factors are contributing to this.
Why Ripple enjoys steady growth
There are various reasons why XRP enjoys steady growth. Below are some of the proven reasons:
Preferred by financial institutions
It is true that many financial institutions, as well as other money transfer service providers, have a problem with cryptos. But this does not apply to XRP. The American Express and Santander bank have endorsed ripple for cross-border payment between countries like the United Kingdom and America. This implies that the XRP coin is enjoying more support than its counterparts on the blockchain technology.
Unlike coins such as bitcoin and ethereum whose mining is complex, XRP mining is an easy task. This has made it the best alternative to those who are not able to mine bitcoin and other complex coins.
With a record 30 seconds transaction speed, many people would prefer it to bitcoin that will need up to 10 minutes. The speed of this coin is a motivating factor that many of its fans site for supporting it.
There are many other reasons why this coin is the darling of many investors. Check out the statistics of this coin below:
|Algorithm type||Ripple protocol consensus|
|Maximum supply||100 billion XRP|
|Founders||Ryan Fugger, David Schwartz, Arthur Britto|
|Avg. transaction fee||$0.0022|
|Transaction speed||30 seconds|
One of the main concerns that have been raised against this coin is the fact that it operates on a centralized system. This means that it does not provide maximum security and privacy as it is the case with other types of cryptocurrencies.
However, the developers of this coin have prioritized this and would decentralize it soon. This is perhaps one of the roadmap to stabilize it amidst challenges facing the blockchain products.
Future of ripple coin
As already mentioned above, the lack of decentralization of the currency is a significant concern. But since the developers plan to improve the trust of the clients by decentralizing it, then such issues would not affect its future much.
The growth of this coin going forward seems to heavily lie in the hands of banks and other financial institutions. How such institutions adopt the use of ripple will have a significant impact on its future. As of the moment, more banks are joining ripple, and this is making its price of the coin to rise. This will eventually drive more people to XRP.