Ripple Bringing Competition to Bitcoin

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Cryptocurrency investors that bought Bitcoin a long time ago made a lot of money. However, since the Bitcoin has such a large market cap, there needs to be large sums of money invested in order to see a large price increase.

Another cryptocurrency that is getting closer to Bitcoin is Ripple (XRP), currently the third largest cryptocurrency in market cap. Since the beginning of the year, Ripple has had many good deals with banks and other big corporations related to cross-border  transactions. Also, it is an entity that wants to work with centralized ecosystems that are already implanted, so its adoption might come faster than other decentralized applications such as Bitcoin.

Many experts gave their opinion on the idea of Ripple catching up Bitcoin.

One that is very optimistic with Ripple’s future is Craig Cole of CryptoMaps since he thinks it could be a catalyst to facilitate cryptocurrency adoption.

Cole mentioned,

“Ripple just might be the catalyst in making cryptocurrency more mainstream.[…] Its faster transaction speeds and lower fees make it easier for financial systems to embrace the virtual currency, which is partly why Ripple’s value has increased dramatically just this year. Ripple is helping financial institutions save money and it is only expected to become even more prevalent in payment flows. The virtual currency is certainly on the rise and has the potential to be the first token to truly disrupt an industry, and if it does, expect XRP to reach Bitcoin-like levels of ubiquity in the near future.”

John-Paul McCaffrey who is the Associate Director ITRC of Long Island University, is another one who feels there is a great future coming for Ripple.

“Although currently there isn’t a platform to exchange fiat currency for Ripple (XRP) this may change sooner than you think,” mentioned McCaffrey. “There is speculation that Coinbase will be adding this to their list of cryptocurrencies they have available for fiat exchange. Providing easy liquidity through Coinbase alone will attract new interest in XRP.”

The CEO of Lead Systems Designer for Pinnacle Brilliance Systems Inc., Roman Guelfi-Gibbs thinks it might take more time than everyone expected for Ripple to gain mass adoption.

“Ripple certainly has the potential to move up a notch in 2018, but I think it will be more likely in 2019. As the market observes more projects being coded in other algorithms such as XRP, ETH will likely take a backseat to the next big coin/token. It will take some time for the markets to digest this, so I am projecting 2019 to be the likely time for it to take place. Of course, with crypto, anything can happen, so watch closely.”

Certain experts are not as positive regarding the idea of Ripple catching up to Bitcoin. One of them  is Shidan Gouran, president of Global Block Chain Technologies.

He mentioned,

“Ripple is unlikely to go up by one or two notches in the cryptocurrency world in 2018, and this is the case for three reasons. The first reason is the sheer dollar volume that separates each of the three currencies in the top positions, in terms of their market cap. Bitcoin is at over $191 billion, Ethereum is at over $84 billion, and Ripple is at over $35 billion. To displace Ethereum would require a deficit of about $49 billion to be closed (which is more than double Iceland’s entire national GDP). The second reason is that the use cases for Ripple are mostly for the trade of assets, not for day-to-day spending. As consumer awareness of cryptocurrencies will rise significantly in 2018 and beyond, the interest of the masses will be on cryptocurrencies that can be used as currencies, not just for investment transactions. Finally, the third reason is that because Ripple cannot be bought with fiat currencies, one must purchase existing cryptocurrencies such as Bitcoin and Ethereum to purchase XRP. This goes on to feed demand for Bitcoin and Ethereum, and will only solidify their positions as the top two cryptocurrencies on the market. Ripple will continue to deliver value, as it has demonstrated a unique set of abilities to facilitate transactions that is clearly in demand. But it does not stand to surpass the market cap of Bitcoin or Ethereum in 2018.”

Ripple had some recent good news with their international payment application. There was also lot of hype regarding the idea of Coinbase listing Ripple, but Coinbase stated that it wasn’t planning to add any cryptocurrency to its exchange. There is still a lot of work to do for Ripple to reach Bitcoin in market cap.

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