Surely, many have already managed to buy the Ripple cryptocurrency, and many did not expect such rapid growth, and ignored it, and now they are biting their elbows.
This cryptocurrency, with an exclusive source code, is already "on the heels" of the leader of the crypto economy Bitcoin, showing capitalization figures of more than 120 billion $ and a rate of 3$ per coin as of the beginning of 2018. At the moment, the cryptocurrency is undergoing a correction. Ripple began to demonstrate rapid growth from the beginning of December 2017, starting its movement from an average of 0.24$.
According to experts, cryptocurrency owes its growing popularity to a special technology that significantly speeds up transactions and reduces the cost of commission, as well as its focus on the banking system.
Ripple — interbank transfer technology
In simple terms, Ripple technology is a bank-to-bank transfer technology. A platform that helps banks transfer money from one country to another. In other words, if Bitcoin helps one person transfer money to another person without intermediaries, then Ripple allows banks to do the same.
How does this work in practice?
For example, a resident of France wants to transfer money to a resident of Germany. To do this, the first one contacts the bank, sends, and the second one receives, but inside the bank there is, as it were, a subsystem that allows you to make this transfer safely, quickly and with a minimum commission, while both residents do not even know that they have become participants in the Ripple system. According to analysts, this is the fundamental reason for the prospects of Ripple. So, precisely because the number of transactions made using Bitcoin is certainly large, but not comparable with the number of bank transfers. In the future, the more banks switch to this technology, the more Ripple they will need, which means the rate of coins will grow. Also, for example, in order to make Bitcoin transfers, people / organizations should understand the system, create new services. At the time, when in the Ripple system, end consumers do not need to think about this, only banks.
Experts believe that Ripple's simplicity, low commission costs, and speed will lead to its rapid implementation in the banking sector.
So far, over 100 banks have announced integration or experimentation with Ripple, and many companies have announced partnerships. The latest news on the company’s expansion is the opening of Ripple offices in Mumbai and Singapore.
Speaking about this recent rapid growth, and the prospects for investing in Ripple, an investor should consider the risk of artificial price inflation. Comparing this risk to the development prospects, according to experts, the prospect has an advantage. If this rise is an artificial price inflation, then the rate will "sag" by some percentage, but will soon return to growth, but if there is no manipulation, then the price, with corrections, will steadily increase.
Returning to the question of investments, each investor, when forming their crypto portfolio, should take a balanced approach to the distribution of cryptocurrencies in it, sensibly weighing all the risks without trying to guess the exchange rate fluctuations.
