Is Ripple (XRP) a Good Investment??

let's talk about ripple and xrp xrp is one of the top 10 cryptocurrencies in the world valued at over 44 billion dollars at the time of this video xrp was priced at around 97 cents and is number seven on the list of the largest cryptocurrencies behind bitcoin ethereum tether binance coin cordano and dodgecoin but ahead of other popular cryptocurrencies like polkadot uniswap chainlink and all others i will break down this video about xrp in the following way first we'll talk about what is xrp and ripple and do these words mean different things then we'll talk about the history of xrp why it actually matters how it works and what it is used for we'll also look at the numbers behind ripple like the xrp coin price number of coins and historical changes lastly i'll give you my own opinions whether or not xrp is a good investment and i'll bring relevant facts to support my opinions if you're new on my channel my name is rob i'm a cpa and an mba from columbia business school make sure to subscribe and turn on the bell if you want to see my future videos about cryptocurrencies and investing so let's begin our discussion by answering the most important question first what is xrp to find the answer i went to ripple's official website xrp and scroll down to the what is xrp section the website says that xrp is a digital asset built for payment it's the native digital asset on the xrp ledger an open source permissionless and decentralized blockchain technology that can settle transactions in three to five seconds xrp can be sent directly without needing a central intermediary making it a convenient instrument in bridging two different currencies quickly and efficiently so to summarize this at a high level xrp is basically a digital currency that can be sent to different parties or can be used to pay for transactions the words xrp and ripple are usually used interchangeably and i myself do so as well but ripple and xrp are actually not the same thing ripple is a company that operates a payment settlement system and currency exchange network that can process transactions around the world the idea is that repo serves as a trusted agent in between two parties in a transaction as the network can quickly confirm that the exchange monitor properly ripple can't facilitate exchanges for a variety of currencies cryptocurrencies like bitcoin and even commodities like gold ripple was essentially designed from the very beginning to be a replacement for swift which is the leading money transfer network or to otherwise replace the settlement layer between major financial institutions xrp on the other hand is a cryptocurrency that runs on the xrp ledger you can buy xrp as an investment as a coin to exchange for other cryptocurrencies or as a way to finance transactions on the ripple network whenever users make a transaction using the ripple network the network deducts a small amount of xrp at cryptocurrency as a fee so how did ripple and xrp start jed mccallup an american programmer and entrepreneur who dropped out of uc berkeley originally conceived of the idea for ripple in 2011 and founded his company in 2012 originally calling it open coin mccallum had co-developers arthur brito and david schwartz ultimately engineer his vision for ripple by 2018 more than 100 banks had signed up to use ripple with most using the infrastructure's messaging capabilities rather than the xrp cryptocurrency itself a class action lawsuit was filed against ripple in may 2018 alleging that it led the scheme to raise hundreds of millions of dollars through unregistered sales of its xrp tokens according to the complaint the company created billions of coins out of thin air and then profited by selling them to the public in what was essentially a never-ending initial coin offering in 2020 as part of its legal proceedings against ripple the sec classified xrp as a security not a commodity the sec stated that repo executive sold 14.6 billion units of xrp for more than 1.38 billion dollars to fund the company's operations and enrich themselves the jump in xrp's value in april 2021 came despite the us suing ripple for raising over a billion dollars by selling xrp on allegedly unregistered securities offerings now let's talk about how xrp works so as we know xrp was created by ripple to be a speedy less costly and more scalable alternative to both other digital assets like other cryptocurrencies and existing monetary payment platforms like swift ripplenet's ledger is maintained by the global xrp community with ripple the company as an active member the xrp ledger processes transactions roughly every three to five seconds or whenever independent validator nodes come to a consensus on both the order and validity of xrp transactions as opposed to proof of work mining like bitcoin anyone can be a ripple validator and the list is currently made up of repo itself along with universities financial institutions and others now let's look at the numbers behind xrp the current price of xrp is 97 cents and the market cap is above 44 billion dollars there are 46 billion xrp coins that are already in circulation which is approximately 46 of the total supply this means that there is an additional 54 of xrp coins that are yet to come into the market since the maximum supply is 100 billion coins as already mentioned xrp is ranked at number seven largest crypto by market cap and its market dominance is approximately three percent which means that three percent of the total cryptocurrency market is invested in xrp looking at the pricing chart xrp started at less than a penny back in 2012 2013 and didn't pick up until 2017 when the price went to about 40 cents in january 2018 xrp increased in price massively going to almost four dollars per coin then the price declined heavily increased by a beat and then went into a complete decline for the next few years similar thing actually happened to many other cryptocurrencies like dodge coin bitcoin ethereum when they all dropped in price from 2018 to 2020.

During the bull market of 2021 we see the price of xrp increasing by a lot again it went to almost two dollars per coin in april and has now declined again in may and june now is ripple a good investment with ripple having such a huge appeal in the financial institution markets and xrp being so popular with investors analysts are predicting that the year will close with xrp at an all-time high and possibly close to 10 by 2025. this is of course assuming that cryptocurrency market will continue to have a strong couple of years and other popular cryptocurrencies like bitcoin and dodge coin also will increase in price in similar capacity i personally think that xrp is a good investment because of the huge potential it has to grow its low price makes it a great investment opportunity and it's used through the ripple network as a token for ultra quick currency transfers but ultra low fees has seen its use increase amongst multinational banks however as you know crypto market in general is very risky and volatile so make sure you do your best due diligence and research before you invest in xrp now it's time to wrap up this video about xrp i want to thank you for watching till the end and i hope you learned something about xrp that you did not know before if you found this video helpful make sure to like subscribe and turn on the bell so that you don't miss my future videos thank you for watching and i'll see you in my next one bye

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