Almost everyone is now aware of what cryptocurrency is and what are its benefits over the real bank notes. As it is a digital decentralised form of transaction, a lot of people especially from Gen Z are showing interest in investing their earnings in crypto.
Bitcoin (BTC) and Ethereum (ETH) are the two most common and most popular coins in the crypto market. Major investors in current times are either investing in bitcoin or in ethereum.
Ripple (XRP) is one such cryptocurrency. It is one of the very popular cryptocurrencies in the US. Brad Garlinghouse (CEO at Ripple) tweeted how ripple achieved the strongest year ever recently. Lets see, what made the ripple achieve this milestone according to the CEO.
What is Ripple?
Ripple is just another currency exchange network released in 2012. It states that it provides secure, instant and free transactions of any size without any chargeback. The personal, native currency of Ripple is XRP.
What makes it different from all the other crypto currency networks is that rather than using blockchain mining, it uses a consensus mechanism and to confirm transactions, they have a group of bank-owned servers.
Ripple has a very easy medium to start investing and begin trading and it also requires a very little amount of minimum deposit unlike the other popular cryptocurrencies.
Buy and hold- this is what the majority of people do while investing in crypto. But this may not work in the case of ripple as prices of ripple have kept on fluctuating for some time.
How is Ripple Beneficial?
- Ripple has a low cost. In exchange for a small amount of money, you can buy a good number of XRP (ripple coins) unlike Bitcoin or Altcoin.
- XRP was created with a goal of real-time problem solving. By solving the problems of large institutions, it increases the pace of flow of capital and hence benefits the economy.
- Unlike other crypto coins, Ripple is not completely decentralised as it has a real group of servers to facilitate the transaction. Hence it proves as a profit to the users.
Demerits of Using Ripple
As the currency ripple is centralised, it means that there is a team of people controlling the cryptocurrency we own. This centralisation is even against the definition of the term cryptocurrency. Cryptocurrency is expected to be the owner’s own money, but if the owner has a superior control over him, it simply implies contradiction.
Ripple was specially designed to solve the financial problems and not to facilitate the ordinary people with a digital form of currency. Hence, it makes ripple a little bit irrelevant.
Garlinghouse: The CEO of Ripple
Brad Garlinghouse became the CEO of Ripple in 2016. At the end of 2021, he was the one who said on his twitter that Ripple had its strongest year ever. And he was proud of it. But what made him say that?
Actually, initially Ripple gained popularity due to its benefits but it started to slow down due to the legal issues.
Legal Charges Against Ripple
In 2020, The Ripple Labs Inc. was charged by the Securities and Exchange Commission for raising over $1.3 billion through the unregistered digital assets securities offerings.
The Ripple is currently in between the legal fights going on.
The claims of SEC were even called aggressive and anti-crypto by Garlinghouse. And he says that this approach is the reason why many crypto companies are moving out from the US.
Even though the Ripple company was fighting a legal battle, CEO appreciates the achievements XRP has made and calls 2021 the strongest year for XRP.
Is It Now Legal to Buy XRP?
As the company is still in the middle of the legal fight, it can be said that it is a little risky to buy XRP now. As owning an illegal asset is risky, it is beneficial to wait for the battle to end.
How Long will This Lawsuit Take?
Garlinghouse said in november 2021 that the Ripple is seeing good progress. If we believe that, this lawsuit can be expected to end in 2022.
Should I Invest in XRP or Not?
Usually, every cryptocurrency is considered volatile but the Ripple is in a more complicated situation right now. If you are convinced to take risk, then investing a small amount in Ripple can be considered worthy. If things turn out well for the company, you will get a good return.
End Note
Every investment is somehow subjected to financial risk. Before making any kind of investment you should be convinced of the profit as well as the loss. As for now, Ripple is facing legal complications, whether it will take a good turn or bad, we can’t predict that. But as an investor, before making any transaction, you should be aware of every possible outcome.
Written By: Nidhi Jha
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