Ripple News Update
Cryptocurrencies passed through all stages of Dante’s Inferno this week, but that doesn’t mean investors are confined to hell in perpetuity. There is a way out, and its name is Big Business.
Or to put it in crypto terms, “enterprise use-cases of blockchain technology may expedite token adoption” by “leveraging the power of existing institutions.” (My god, this industry needs better language.)
What am I talking about?
Let me explain…
When the market crashes, investors believe that cryptocurrencies are failing. This is true in some cases and horribly untrue in others.
Ripple (XRP) Price Chart
Consider the case of Bitcoin, a crypto striving toward currency. It needs stable prices in order to work effectively because people are generally uncomfortable with their cash-on-hand shrinking by 20% in a single day. In this case, it is true that falling prices equals failing.
Ripple is at the opposite end of the spectrum. Its success is tied up with corporate partnerships; how many banks operate on its network, how many payments corridors it opens etc. Short-term price movements don’t matter as much, if at all, meaning it is NOT true that falling prices equal failing.
This much became clear when China banned cryptocurrency trading in September 2017. The move made it impossible for Bitcoin to succeed there, whereas Ripple continued to work with major Chinese banks on international payments issues. The company even opened an office in Beijing.
I find this more than a little ironic.
Many Bitcoin fans criticize Ripple for being too centralized, too friendly with banks, too apolitical. Don’t they understand that virtual currencies are here to break the system?
These are the common refrains I hear about XRP, yet they are precisely what could lead to a resurgence in the crypto’s value. You see, XRP’s lack of political ambition saved it from completely alienating China, because it wasn’t a threat to the established order.
Call me a sellout, but I believe that’s a winning strategy. Don’t ruffle too many feathers. Solve a real business problem. Manage your growth effectively. These are the common traits of successful companies, and Ripple has them all.
Put another way, Ripple’s biggest weakness is actually its greatest strength.
Despite the current retracement, we continue to believe that XRP prices will accelerate to our $10.00 Ripple price prediction for 2018.