Ripple News Update
Although XRP prices are flashing red this morning, Ripple is actually net positive for the weekend. From its Friday lows to the time of this writing, the XRP to USD exchange rate advanced 5.55%.
But that’s not the biggest story in today’s Ripple news update.
No, once again, investors are at odds about XRP. Is it a cryptocurrency? Is it centralized? The questions that have haunted XRP prices for years are back, spread across message boards and forums that support more libertarian digital assets.
These debates may seem crazy to newcomers, but it’s important that we have them. XRP is one of the most promising digital assets in the world. But without addressing the myths and rumors that weigh down its price, we cannot hope to see XRP prices return to above $1.00.
So let’s get our hands dirty.
- Is XRP a cryptocurrency? For all intents and purposes, yes. I know that Brad Garlinghouse says XRP isn’t a currency and that it has a million differences from Bitcoin, but will any of that matter to regulators? I don’t think so. At this stage, we have to assume that regulators are lumping Bitcoin and XRP into the same asset class, which signals that any distinctions are meaningless.
- Is XRP centralized? Short answer: No. Long answer: Maybe. This question drives me crazy, because it assumes that there’s a switch between centralized and decentralized. There isn’t. In reality, there’s a spectrum. If Bitcoin is at one end of the spectrum and a nationalized banking system is at the other, XRP is definitely closer to the Bitcoin side.
Moreover, XRP is getting more decentralized as times goes on. I wrote last week that an upcoming initial coin offering (ICO) on the XRP Ledger is proof of its decentralization. Oh, and there’s also the fact that Ripple added 55 nodes last year alone.
By and large, I think XRP’s popularity has resuscitated this debate. There are lots of new investors who weren’t around when we had this debate last October, so it’s only natural that some things will get repeated.
In any case, we still maintain our long-term bullishness on the XRP price. Our $10.00 Ripple price prediction remains unchanged.