Forget Bitcoin. So long Litecoin. There’s a new cryptocurrency on the rise.
Ripple, designed for banks and global money transfers, has seen its XRP digital currency skyrocket in value. In just three days, its market capitalization doubled from $9 billion** to **$18.1 billion.
👉 Why is Ripple outperforming Bitcoin and Litecoin?
What Is Ripple?
Ripple predates Bitcoin, with roots tracing back to 2004. Relaunched in 2012, it gained traction under leaders like Chris Larsen (E-Loan) and Jed McCaleb (MtGox).
Key features:
- Bank adoption: Over 100 banks use Ripple’s blockchain for secure, efficient cross-border payments.
- Liquidity advantage: XRP settles transactions in 3.6 seconds vs. Bitcoin’s 4 hours.
- Decentralized currency: Supports any currency transfer via its network.
Why Is Ripple Surging?
- Bitcoin spillover: Investors diversify into altcoins like XRP for higher potential returns.
- Strategic partnerships: American Express and 100+ banks adopted Ripple’s tech.
- Institutional interest: Michael Arrington’s $100M crypto fund is XRP-denominated.
Growth in 2017
- Price surge: 7,000% YTD.
- Market cap: Up 7,700%.
👉 How does Ripple’s speed compare to other cryptos?
FAQs
1. Is Ripple better than Bitcoin?
Ripple excels in speed and bank integration, while Bitcoin remains a store of value.
2. Why do banks prefer Ripple?
Its fast settlements and lower costs reduce reliance on traditional nostro accounts.
3. How high can XRP go?
Speculation varies, but adoption by major financial institutions boosts long-term potential.
4. Is Ripple decentralized?
Yes, but it’s more centralized than Bitcoin due to its company-managed XRP supply.
5. What’s the downside of XRP?
Regulatory scrutiny and competition from other blockchain solutions pose risks.