For the first time in a week, cryptocurrencies stuck their heads above water. The Ripple-to-USD exchange rate jumped 7.13% to $0.188622, while simultaneously falling 4.22% against Bitcoin.
China’s ban on cryptocurrency exchanges was once again the biggest piece of Ripple news. This time, however, prices moved to the upside, because investors realized that last week’s reaction was a little excessive (if not downright apocalyptic).
What makes it worse is that Ripple didn’t deserve the beating it took last week.
For one thing, less than five percent of its trading volume came from Chinese exchanges. But more than that, its use of blockchain technology is pretty innocent. It wants to disrupt SWIFT’s hold on sending international money transfers.
That requires intimate dealings with banks, financial firms, and regulators. It means having your governing body structured as a corporation, rather than as a non-profit foundation. It means making friends out of the establishment.
That’s what Ripple does, and why it became incredibly popular.
Bitcoin, on the other hand, is the “dangerous” cryptocurrency; the one that wants to destroy fiat money.
Central bankers have a problem with that, which seems natural enough. But I can’t think of a good reason why they’d ever regulate against Ripple. So there’s a big difference in how laws might be applied to Ripple and Bitcoin.
Exclusive Free Report:
Ripple improves the efficiency of the global financial system while providing a way to cordon off permissioned blockchains from public ones. It is the perfect middle ground for those in the old guard that recognize change is inevitable, yet it isn’t priced to reflect that potential.
I believe this is just a matter of ignorance. Investors paint their Ripple price prediction with the same brush used on their Bitcoin price prediction, which is idiotic, considering that one is an enterprise blockchain and the other is a public one.
Sooner or later, markets will come to appreciate these differences. We estimate that the resulting shifts to capital will cause XRP prices to accelerate towards our medium-term forecast of $2.00.