Of all the cryptocurrencies affected by the recent slump in digital currency values, it seems that Ripple (XRP) is the one most likely to recoup its losses the fastest and surge ahead in terms of its value growth.
But why? What's so unique about Ripple that it can ease its way through this financial turbulence, where all other altcoins are being relentlessly buffeted by the slipstream the crash is leaving in its wake?
First, let’s clarify something – Ripple is not the only currency that will rebound from this crash. Since Bitcoin started making waves at the turn of the decade, the market has seen the same pattern – a surge in interest and value, peaking at an all-time high for the industry, followed by a period of correction (of which the so-called “crash” we are witnessing at the moment is but a prime example), followed by another rise in value, culminating in a further surge.
Wash. Rinse. Repeat.
However, Ripple is uniquely placed among the rest of the pack to recover ground more quickly, and with a greater forward momentum than its competitors which is why it, rather than big-name altcoins like Bitcoin and Ethereum, will be responsible for the next surge of interest in cryptocurrencies.
It has resources.
Yes, compared to its direct competition, Ripple is arguably one of the largest companies in the world dealing exclusively in financial tech. Its resources are colossal, and its management and development teams one of the most impressive on the scene.
With new exchanges like SBI opening up in the Far East that have pledged to trade solely in Ripple (at least, when they first open) this is a major coup for the currency. SBI’s financial and corporate reach is immense, stretching across major markets like Japan, South Korea and Hong Kong. While there will be nothing stopping people trading assets in other exchanges for different cryptocurrencies, convenience alone will convince many Asian corporations to invest their finances in Ripple to facilitate easier (and cheaper) transactions without the hassle of second and third transactions to change currency.
In effect, we are seeing the first example of a digital currency being utilised as a de facto fiat currency. This, combined with exclusive use in big-name applications like Moneygram and Robin Hood, earmarks Ripple as an altcoin that the wider financial markets are taking seriously.
Original Image Source: Pixabay