Should You Dump Bitcoin And Go For This Cheap Cryptocurrency?
Did you miss the ride on Bitcoin given that Bitcoin hit $19,000 a few days ago?
Have you arrived too late to the Bitcoin party?
Do you still want to try your luck on the world of cryptocurrency trading?
Well, this cheap cryptocurrency could suit your cryptocurrency needs. I'm talking about Ripple .
Ripple was launched in 2012, started at less than 1 penny and was worth 0.00642 of a penny in January 2017.
As also shown here, it rose almost 4,000% during the first half of 2017, hit $0.20 last September and closed at $1.24 yesterday (12/21/2017), so it has risen tremendously since early 2017.
However, it's very likely that there is still significant upside from the current price of $1.24 thanks to a couple of reasons.
First, Ripple is less popular and much cheaper than Bitcoin, Ethereum and Litecoin.
Second, some of the world's big players are taking Ripple very seriously and adopt it at the end of the day.
Specifically, in early 2017, Ripple announced the addition of 10 new customers to its growing global network. These financial institutions included MUFG, BBVA, SEB, Akbank, Axis Bank, YES Bank, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, innovative smaller banks and payment service providers.
Also, in October 2017, Ripple announced that it had more than 100 sign-ups to its blockchain network RippleNet, including American Express and Santander that partnered with financial technology firm Ripple to speed up cross-border payments between the U.S. and the U.K. by using blockchain technology.
On that front, payments made by American Express' business customers on its FX International Payments (FXIP) platform will now be routed through Ripple's enterprise blockchain network, RippleNet.
We consider these major developments to be Ripple's key advantage compared with Bitcoin, which bodes well for its future. These key developments largely stem from the fact that Ripple boasts a faster transaction time than bitcoin, a few seconds instead of more than a hour, facilitating transfers.
On the flip side, the cryptocurrencies including Ripple will continue to be very volatile and very risky. To me, the key reasons behind their extremely high risk and volatility are:
1) Their price can't currently be reliably determined by supply and demand fundamentals. Actually, there is not any central regulatory system that can effectively control the supply, while the real future demand as a result of our real future needs is highly questionable. The price is mainly the result of a speculative approach with regard to the future demand.
2) The cryptocurrencies are not backed by any tangible asset.
3) Currently, the big Governments don't support the cryptocurrencies because they have their own currencies such as Euro, Dollar, Yuan and Yen and they will not allow the digital currencies to break their monopoly on printing money.
4) Cryptocurrencies are associated with the ease of moving money in and out of countries without central bank supervision and therefore, they have the potential to facilitate money laundering and financial crime activities. On that front, and according to the Treasure Department in the U.S., over $300 billion is generated annually in illicit proceeds.
After all, the cryptocurrencies are at their infancy with many unanswered key questions, so you have to be prepared to lose a significant amount of your original investment.
Nevertheless, all cryptocurrencies are not equal. As such, if you are interested in buying Ripple at $1.24, Ripple can be purchased either by using other cryptocurrencies (i.e. bitcoin) or by using regular currency. The easiest way I have found to buy Ripple with U.S. dollars is via www.kraken.com exchange.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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