Published
5 years ago on
November 05, 2018
“We expect the scale of this to be much bigger than what we saw in 2017, and we also expect only a handful of cryptocurrency to benefit from this, i.e. the ones that are close to Wall Street’s world.”This is how they look at the fundamental analysis over at Ripple. This is obviously a different viewpoint than what the majority of other analysts apply which is great but nevertheless, accuracy is needed. If you look at new digital currencies, they are essentially a crypto startup. As a rule of thumb, 90% of startups usually fail because they develop products that the world doesn’t need. If you look at the Ripple fundamental analysis, it’s important to understand how Ripple performs from a startup growth perspective. With ‘traction’, it means that the startup develops a product or service in a way that solves an issue for certain segments of the market. The bigger the market is, the more potential there is for a startup. So this is the important challenge that any startup fails and every crypto startup that has a cryptocurrency. Thinking of it this way takes away the irrelevant concepts of digital currency market cap and so on. In their latest blog, Ripple explains what problems this actually solves:
“If you’ve ever had to send money abroad, then you know the process is frustrating. It’s expensive, slow and you often don’t know when, or even if, your money arrived. The cross-border payments infrastructure is antiquated and broken. The reality is that it’s still faster to get on a plane and fly money to the destination yourself, then it is to send money to another country using today’s international financial infrastructure.”Investment Disclaimer
