YOU SHOULD NOT INVEST IN RIPPLE CRYPTOCURRENCY MARKET 2018 Generally, people have a misconception regarding Ripple.Ripple is also a type of cryptocurrency and an emerging technology. Means it is completely digital, you can touch and have physical money in your hand but you can have ripple only in your bank account.
People thought ripple is just like another cryptocurrency similar to Bitcoin, Ethereum, Litecoin and others. But the truth is Ripple is a relatively closed blockchain. Users can download a wallet and transfer Ripple to it but have to form trust lines with other organizations in order to gain access. Thus you cant send money to whomever you want. Firstly they have to agree with you as a trustworthy before proceeding any transaction.
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YOU SHOULD NOT INVEST IN RIPPLE CRYPTOCURRENCY MARKET 2018
Most likely you have heard of Bitcoins. Which is a decentralized digital currency that allows any user to proceed fast payments without any sort of delay so you don’t have to wait 2 or 3 business days that the money transfer from your account to another account. Ripple has many same benefits as Bitcoins but it’s also expressively different.
Basically, Ripple is a system created for banks to enable immediate payments at lower costs. Imagine if you could make a bank transfer within a few seconds money got deposited at the receiver account without waiting for 2 to 3 days.
Another biggest downside with Ripple is, unlike Bitcoins Ripple is a centralized cryptocurrency. Invest is ripple is not advised as being a centralized currency. One company owns the system more than 70% of ripple.
That means the company can promote their system until the price goes high, then they sell all of their assets, take the money and leave.
However, it won’t be going to happen at least in the near future. As They announced that a big part of their Ripple holdings will be locked for 5 years. That change will undoubtedly take the price higher because there are fewer Ripples available for trade.
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And we know, the concept If there’s availability of something is in huge amount than the demand, ultimately its price goes down. Like, if there is lots of oil available in the world, it is not so valuable. But when we come to know that there is not considerably amounts of oil. It affects oil’s price so that it goes high.
Another main reason is when Bitcoin and Ethereum were originally created their cryptocurrencies, BTC and ETH, were designed to be stores of value.
When someone proceeds a transaction, he sends a value to another account as a payment like money. Miners were created across the whole network to facilitate the transaction process. And they help in any transaction they were compensated with this cryptocurrency, either through mining reward or fees.
This is not in the case of ripple, Ripple works extremely differ from bitcoin. XRP which is Ripple issued currency was mined all at once by the parent company, with the large no. of cryptocurrency held by them. Whenever a new transaction is carried out in the XRP network, there is a fee paid in XRP but not as compensation fees.
Ripple is a blockchain for banks, primarily focused on facilitating the bank transaction process. Normal users are not supposed to interact with the system . All transaction fees are ‘irreversibly destroyed’, not be given to any member in the network.
Founder of Ripple also suggested not to invest in Ripple. XRP has unique properties and an unusual use case that does not fit into the traditional cryptocurrency model.
This point is not only for Ripple but for all cryptocurrencies, usually, people tend to save their transactional information on their laptop or mobile. Same as traditional banking information like account number, passwords etc. But in the case of cryptocurrency, we have a wallet address (public key). Maybe possible you lost these information like unknowingly you delete your data or maybe you accidentally format your laptop.
Then, what will happen? In case of your bank account, you can reissue your password or simply you can go to the bank and can demand a new password.
But in case of cryptocurrency there in no way to get all these information again. As there is no middle person as a trusted source like the bank, to whom you can complain and confront your issue.
Once you lost your wallet address all your cryptocurrency will be lost. No one has control on these.
And finally, from the beginning cryptocurrency was being a hot topic of discussion, some have seen this as a future but on the other side, there are many people who are against this system. In Many countries, cryptocurrency is ban and illegal and many don’t have any regulatory framework to watch over them.
YOU SHOULD NOT INVEST IN RIPPLE CRYPTOCURRENCY MARKET 2018