Will Ripple Crash Soon, Following Bitcoin?
Will Ripple Crash?
The Ripple XRP juggernaut continues to roll! Ripple XRP was trading at over $3.70 at the time of writing. Bitcoin, on the other hand, continues to take a beating and is down by almost three percent.
So what is driving this rally and is an XRP crash coming? The increasing demand for crypto assets is primarily the result of the craze for decentralized currency combined with the power of blockchain technology made popular by Bitcoin.
But the fact is that Ripple XRP is a totally different crypto beast than Bitcoin. Ripple XRP is not a decentralized currency as the majority of XRP is owned by the company and its founders.
Hence, saying that there might be a Ripple crash in 2018 just because Bitcoin is going down is not justified. But what we should focus on is the utility of XRP—the native token of the Ripple payment network. There are a number of concerns regarding this as the use of Ripple XRP is not required on the Ripple network where other currencies with better liquidity and features have the edge.
Thus, the concerns regarding its perceived value are real and we have covered them in our previous article on Ripple XRP.
We try to answer in simple terms as we come back to the original question—Why is Ripple XRP rallying and is an XRP crash coming?
Crypto enthusiasts have seen phenomenal returns from cryptocurrencies like Bitcoin and they expect the trend to continue with other digital currencies as well. Everyone wants a piece of the cake. It’s a classic case of fear of missing out (FOMO), which shall keep digital assets like Ripple XRP flying high for a while.
Crypto investors don’t want to miss out the five- and six-digit returns from these digital coins, which have become the norm these days. And they shall keep on investing in these crypto assets despite the fact that they may be totally different from each other.
A Ripple crash in 2018 is a good possibility, but not because Bitcoin is losing its lustre. It would come about as a result of XRP not being in significant demand by the number of banks that have entered into strategic partnership with Ripple to use its payment network. Although Ripple claims that financial services companies can reduce their transaction costs manifold if they use XRP on their network, not many banks have been forthcoming in expressing their interest in XRP, which leads to a lot of doubts.
Cryptocurrency Market Crash
Talking about the next question that pops up in mind—Is there a cryptocurrency market crash coming?—the answer is that it would be later rather than sooner. There are a number of crypto assets out there with real-world applications to make things work better for all and they will be amply rewarded.
There could be a few bad days for the cryptocurrency market if Bitcoin tanks, but there are many players waiting in the wings to take its place.
