The world woke up to news today that India’s third largest private lender, Axis Bank, UAE’s Rak Bank and Standard Chartered Bank have developed a new cross-border payments platform built upon Ripple’s enterprise blockchain platform, Ripple Transaction Protocol (RTXP). This is one of the many developments that have made Ripple’s digital currency, XRP the hottest digital currency in the market. It’s the fourth most valuable digital currency with a market capitalization of just over $9.1 billion. It’s developed by Ripple Labs Inc. which was formerly known as Opencoin Inc.
Ripple’s price has gone up an astounding 4,000% since the start of the year, signaling increased confidence in the currency. In line with its promise to transform the monetary system the same way the internet transformed the world of information, Ripple aims to make money transfer faster, more efficient and secure and also cheaper.
Some of the reasons that make Ripple the best currency to invest in currently include:
1. Its price
This is one of the most enticing reasons to invest in Ripple. Its current market price is less than $0.5 which is amazingly low. Its competitors are much higher, with Bitcoin leading the pack at over $8,000 while others like Ethereum and Dash currently trade at $370 and $587 respectively.
This relatively low price is especially lucrative for novice investors who may not have lots of funds at their disposal. This should however not be misconstrued to mean the price will not rise. This year alone, it has already spiked 4,000% and it’s projected to keep rising. This is most definitely the best time to invest in Ripple before the price becomes too high.
2. Integration with financial institutions
The biggest hurdle for all digital currencies has been acceptability by the general public and lack of public trust. Acceptance and endorsement of any digital currency by major institutions gives it credibility and its price shoots through the roof. This was the case when the government of Japan accepted Bitcoin as a legal payment method.
Ripple is leading in this field with its payment platform being accepted and used by over 75 banks and financial institutions globally. The most notable clients are Standard Chartered, Santander, Unicredit, and UBA. These reputable institutions have led to Ripple being accepted even in countries like China which have banned other cryptocurrencies like Bitcoin. This will create high public confidence leading to a heightened interest in the currency which will drive its value higher.
3. Speed of transactions
Speed is of the essence in the digital trading space. This has been the key spec that has led to some currencies performing better than others. Ripple is by far the undisputed leader when it comes to settling transactions. Ripple averages 3.7 seconds to settle a transaction. In comparison, its competitor Bitcoin takes around two hours. In context, this means that Bitcoin can only process less than ten transactions in a second while Ripple can easily process 1,500 transactions. This is enabled by the use of Ripple Protocol which determines the legitimacy of a transaction as opposed to the ‘proof of work’ model used by the likes of Ethereum and Bitcoin.
4. Range of uses
For all the other currencies, there has to be a third party to facilitate a transaction which leaves them prone to security breaches. Ripple, however, doesn’t require a third party and one can sell and buy other cryptocurrencies on its network. This means that you can pay merchants with digital currency such as Bitcoins or XRP and have the merchant receive the payment in a currency of their choices such as in US dollars or the Euro. In the long run, this will make Ripple a universal platform for all other cryptocurrency owners which will drive the price of XRP even higher.
With the emergence of hundreds of digital currencies, Ripple has set itself apart by not just being a cryptocurrency but also a platform that facilitates transfers from all parts of the world. This has made it the most used cryptocurrency by financial institutions which will keep raising its value. The time to invest in XRP is now!