Ripple gained a lot of traction recently as its price moved above $0.8000 versus the US Dollar. Let’s understand why XRP is the best digital asset for payment, altcoins future and how it can be a leader in the cryptocurrency space.
During the recent times, there was a sharp increase in buying interest for XRP since Ripple gained a lot of traction. The price moved above the $0.5000 and $0.7500 resistance levels versus the US Dollar and it looks like it could even trade towards $1.00 if the current momentum stays intact.
In this post, I will highlight a few major advantages of Ripple, but at the same time we will understand why it’s hard to believe that there could be heavy gains in the price in the near future.
How Ripple is More Efficient as Digital Asset for Payments
Since the start, Ripple gained a lot of popularity due to many big firms taking part in the project. Its token’s price XRP/USD gained a lot of bids and rose from $0.006 to well above $0.7500. This means a rise of more than 10,000% gains from the 0.006 low.
Let’s understand why Ripple can be seen as the best digital asset for payments. Recently, the Marketing Director at Cointal – Founder of XRP Street Team, Michael Bidegain shared an interesting comparison on his social media profile.
The comparison clearly states the efficiency of the network. It is far more superior in terms of the cost and can be transacted as low as $0.0004. In terms of the speed, it takes around 3.3 seconds as compared with bitcoin that takes on an average 45 mins.
When it comes to scalability, its 1,500 TPS when compared with Ethereum’s 16 TPS. Therefore, Ripple is clearly more efficient in terms of cost, speed and scalability when compared with Ethereum and bitcoin.
What’s Bad for Ripple’s XRP Token
There is a major disadvantage of the XRP token. It hardly has any utility value as per many experts and even a few team members of Ripple.
This means the network is solid, but its token has not utility. Therefore, any substantial increase of $1 would be really surprising. Yes, the network might continue to grow but XRP’s price could be only driven by network’s growth and not by any means of value of utility.
As of writing, the market cap is of $29,268,934,759 USD (as per coinmarketcap) and the current price stands at $0.7500.
It recently traded as high as $0.90 and is currently correcting lower. More upsides are possible towards $1, but investors need to be very cautious going forward considering the current monstrous run and overbought levels.
Trade safe traders and stay away from hype and false rumors while trading.