The astounding surge in bitcoin’s price has been all over the news as of late, with the cryptocurrency now being traded on the CBOE exchange in Chicago. You’ve likely heard of bitcoin, especially if you are reading this article.
But you’ve likely never heard of Ripple (XRP), a C++ cryptocurrency. (https://dealbook.nytimes.com/2013/11/11/the-rush-to-coin-virtual-money-with-real-value/?_php=true&_type=blogs&_r=0) Of course, you may hear quite a bit about it in the near future, with prices for XRP jumping from a little more than half a cent at the end of 2015 to 3.16 as of this writing. Ripple was created in 2012 as a way or banks to transfer money to one another. Unlike Bitcoin, XRP was created specifically for financial institutions, giving it more legitimacy.
And though XRP may be cheap, and though Ethereum has a price of around $1000 dollars, XRP has the second highest market cap after bitcoin. Ripple is also centralized, created by its namesake company as a.Bitcoin, on the other hand, is nearly completely unregulated. Bitcoin’s creator is currently unknown. Indeed, the philosophies behind bitcoin and XRP are polar opposites. XRP is more of a FOREX tool than a first-generation cryptocurrency. Bitcoin may end up being more of a digital store of value -a web-based version of physical gold- than a unit of exchange. Conversely, XRP is built from the ground up to be the latter.
And, again unlike bitcoin, there is no energy-intensive “mining” involved in Ripple’s creation. A total of one-hundred billion XRP were created when Ripple Labs created the currency. Of that number, 61% is held by Ripple Labs. Ripple is focused on selling their software to banks and financial institutions. Major lenders such as UBS and Santander use Ripple as a “settlement infrastructure technology.” In layman’s terms, XRP is a way for banks to send money around the world. With this particular cryptocurrency already being given legitimacy by being used in the world of finance, it is more secure than bitcoin.
So if you are interested in making a potentially lucrative investment -or are just interested in the exciting new trend of cryptocurrency-, feel free to look more into Ripple.
Be advised: investing in cryptocurrencies is a highly speculative move, even more, speculative than FOREX trading. Consult your financial advisor before investing in any cryptocurrencies.