Ripple News Update
If there’s one thing I’ve learned about cryptocurrencies in the last year, it’s that they move through boom and bust cycles at hyperspeed. What takes the stock market years takes cryptos a few months.
For example, XRP prices went on an epic run in December 2017, then crashed dramatically the next month. Now it looks like they’re back on the rise, courtesy of new partnership announcements.
Boom, bust, and boom again.
But how do these changes happen? What causes investor sentiment to shift from optimism to pessimism, or vice versa? Cryptocurrencies don’t have cash flows or underlying assets, so valuing their intrinsic worth is difficult. All investors can judge is their likelihood of success.
Therein lies the secret of valuing cryptocurrencies. The probability of success. What you are betting on is the likelihood that this cryptocurrency will achieve what it promises.
Ripple (XRP) Price Chart
Consider the example of Bitcoin and Bitcoin Cash. Whenever there’s trouble in Bitcoin paradise—transaction costs surge, transfer times lengthen—investors rotate their money into Bitcoin Cash. Why? Because its chances of superseding Bitcoin have increased.
This same model applies across the market, which is why I am so bullish on XRP. Its chances of success are very high! But in order for Ripple prices to reflect this reality, the company must demonstrate its potential through a series of partnership announcements.
And that’s exactly what it’s been doing.
Last month, Ripple announced partnerships with three of the five biggest cross-border payment companies. All of them are using XRP. More recently, Ripple is partnering with The Western Union Company (NYSE:WU), Saudi Arabia’s central bank, and Chinese fintech giant Lianlian Yintong Electronic Payment Co., Ltd.
These developments show that Ripple is delivering on past promises. As a result, it’s no surprise that Ripple prices jumped 5.78%, thus bringing the XRP to USD exchange rate to $1.13.
We remain incredibly bullish on XRP. The closer the company gets to its vision of dominating cross-border payments, the more investors will rotate their investment toward it. As such, we maintain our $10.00 Ripple price prediction for 2018.