XRP
"Don't underestimate the ripple effect of what you do. These kinds of actions have toppled empires." Leila Janah
Why XRP?
XRP aims to replace SWIFT payments for banking payments, as well as being quicker and cheaper than Bitcoin for making payments generally
Bitcoin stores data on transactions in Bitcoin
XRP stores data on transactions waaaay faster than Bitcoin. It is set up to be easy for banks to write to the system to speed up their transactions. Their transactions become simpler, faster and a LOT cheaper and they will like that, obviously. A simple transaction costs 0.000001 XRP. (Current XRP price is $0.0139). A SWIFT transfer costs the client a standard charge ($10 min usually) and also the bank tears them a new one on exchange rates, (3-5%) for the smaller ones. A cheap shot at the banks from me there, but accurate enough.
The Ripple network while theoretically decentralised, is still run on a network owned by Ripple and this is seen as a problem, though it may be relieved if all banks start to run their own Ripple servers, at which point its “consensus method” of validating transactions becomes effectively more decentralised and trustworthy. There is still the “problem” of one person “owning” the network. Currently the banks use SWIFT, which is owned by its members… the banks. Is it a problem? I’m not sure. Could be.
Users pay for the use of the decentralised network using… you guessed it… XRP tokens, a small amount of which are destroyed each time. It has been stated in research that the energy required to run a Ripple Server is comparable to that needed for an email server. That stacks up well against the infamously power-hungry Bitcoin network. So cheaper and also ecologically cheaper. Did I mention faster? Think seconds not minutes.
XRP is currently the 7h-ranked crypto in the world, with a market cap of $50bn, so why do I care? Why not write about one of the others? Because the use case is compelling, and the lawsuit is interesting, and I will write about some more of them soon. What lawsuit? See below…
ETH is currently 43% correlated to Bitcoin.
The main reason for the disconnect between them is a massive SEC lawsuit.
MASSIVE SEC LAWSUIT
In 2018 the SEC took Ripple to court, alleging that XRP constituted a security and therefore was subject to regulation as a security. It is also suing 2 executives of Ripple, but that’s not relevant to an analysis of Ripple itself.
The court has yet to decide, but a good way to look at it is that if the court rules in favour of Ripple (My personal opinion is that it will NOT go this way), then XRP is fantastically cheap right now.
If it rules in favour of the SEC, then a lot depends on how the case gets settled. There are many ways for the settlement to go, but for me it is hard to see it being so ruinous that Ripple has to close. The fact that it is so obviously a step forward for payments means that investors may well support Ripple to push on, pay a fine and get it all going. Either way XRP looks cheap to me. It has not shared much at all of the recent rally in cryptos across the board.
I hope it shares the imminent correction in crypto so I can buy some.
The Elliott wave shows such a deep weekly 4 that it’s possible we are not yet at 3. Either way the bias is long. I am waiting till we get the market correction on all cryptos, which I believe is on the way. You can see more discussion on THAT theme in our Discord, see below.
It should be noted that using Elliott on such a young asset is problematic.
This is not investment advice and in no case will I be responsible for possible losses caused by investing in an asset as volatile as a cryptocurrency.
"Don't underestimate the ripple effect of what you do. These kinds of actions have toppled empires." Leila Janah
Why XRP?
XRP aims to replace SWIFT payments for banking payments, as well as being quicker and cheaper than Bitcoin for making payments generally
Bitcoin stores data on transactions in Bitcoin
XRP stores data on transactions waaaay faster than Bitcoin. It is set up to be easy for banks to write to the system to speed up their transactions. Their transactions become simpler, faster and a LOT cheaper and they will like that, obviously. A simple transaction costs 0.000001 XRP. (Current XRP price is $0.0139). A SWIFT transfer costs the client a standard charge ($10 min usually) and also the bank tears them a new one on exchange rates, (3-5%) for the smaller ones. A cheap shot at the banks from me there, but accurate enough.
The Ripple network while theoretically decentralised, is still run on a network owned by Ripple and this is seen as a problem, though it may be relieved if all banks start to run their own Ripple servers, at which point its “consensus method” of validating transactions becomes effectively more decentralised and trustworthy. There is still the “problem” of one person “owning” the network. Currently the banks use SWIFT, which is owned by its members… the banks. Is it a problem? I’m not sure. Could be.
Users pay for the use of the decentralised network using… you guessed it… XRP tokens, a small amount of which are destroyed each time. It has been stated in research that the energy required to run a Ripple Server is comparable to that needed for an email server. That stacks up well against the infamously power-hungry Bitcoin network. So cheaper and also ecologically cheaper. Did I mention faster? Think seconds not minutes.
XRP is currently the 7h-ranked crypto in the world, with a market cap of $50bn, so why do I care? Why not write about one of the others? Because the use case is compelling, and the lawsuit is interesting, and I will write about some more of them soon. What lawsuit? See below…
ETH is currently 43% correlated to Bitcoin.
The main reason for the disconnect between them is a massive SEC lawsuit.
MASSIVE SEC LAWSUIT
In 2018 the SEC took Ripple to court, alleging that XRP constituted a security and therefore was subject to regulation as a security. It is also suing 2 executives of Ripple, but that’s not relevant to an analysis of Ripple itself.
The court has yet to decide, but a good way to look at it is that if the court rules in favour of Ripple (My personal opinion is that it will NOT go this way), then XRP is fantastically cheap right now.
If it rules in favour of the SEC, then a lot depends on how the case gets settled. There are many ways for the settlement to go, but for me it is hard to see it being so ruinous that Ripple has to close. The fact that it is so obviously a step forward for payments means that investors may well support Ripple to push on, pay a fine and get it all going. Either way XRP looks cheap to me. It has not shared much at all of the recent rally in cryptos across the board.
I hope it shares the imminent correction in crypto so I can buy some.
The Elliott wave shows such a deep weekly 4 that it’s possible we are not yet at 3. Either way the bias is long. I am waiting till we get the market correction on all cryptos, which I believe is on the way. You can see more discussion on THAT theme in our Discord, see below.
It should be noted that using Elliott on such a young asset is problematic.
This is not investment advice and in no case will I be responsible for possible losses caused by investing in an asset as volatile as a cryptocurrency.
Comment:
error in above it was 2020 not 2018 when SEC opened the lawsuit. My bad.
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Discord: discord.gg/Ma7SnExcWA
