I personally believe that bitcoin will implode within the coming years, leaving Ripple’s XRP as the strongest contender for status as a federally approved digital currency
The buzz surrounding bitcoin has been off the charts, and for good reason. The cryptocurrency has become a staple of virtually every news report. Analysts are jumping for opportunities to give their 2 bits on the future – positive or negative – of the world’s most popular block-chain cryptocurrency.
But, I think there’s something even more fascinating hiding in the shadow of bitcoin: Ripple. In the past month, Ripple’s XRP market cap doubled from $9 billion to more than $18 billion. Why is it so hot?
Ripple Changes the Way All Currency Transfers Are Processed
Ripple does something even more earth-shattering than bitcoin; it revolutionizes the way currency is exchanged around the world. Instead of waiting 3-5 business days for traditional banks to process a transfer, or 4 hours for a bitcoin transfer to process, Ripple’s XRP is transferred virtually instantaneously.
And it doesn’t just revolutionize cryptocurrency. Ripple is a secure, block-chain based platform that is supported by a team of experienced financial professionals, including Chris Larsen, the co-found of E-Loan. The team have inked deals with Moneygram, UBS, American Express, RBC and Santander, just to name a few. This video helps to explain the concept in a way that doesn’t require a fintech degree. To be honest, the changes it makes are very long overdue. And the most powerful aspect for traditional financial institutions, beyond the speed of the transfer, is the fact that personal customer information is never disclosed to the Ripple platform.
This is important, because financial security breaches have wreaked billions of dollars in havoc on our financial system. Consumers don’t want to expand their risk. But everyone wants to get access to their money faster.
Ripple’s Leadership Team Works Closely with Federal Regulators
Another reason Ripple is fascinating is their cooperation with the U.S. Federal Reserve. While bitcoin’s biggest supporters try to outfox federal and international monetary regulations, Ripple’s team are active members of multiple U.S. Fed taskforces designed to improve international money transfer speed, security and transparency.
How the U.S. government plans to regulate cryptocurrencies is still up in that air. But there are more than a few funny headlines while we wait in limbo. For example, the U.S. Attorney’s office in Utah wants to cash-out seized assets in a recent drug case – property seizure is a staple of combating the war on drugs. CBS reports that an accused drug trafficker used the dark web to sell fentanyl pills. The accused had millions of dollars stuffed in trash bags, which were seized. But, to protect the anonymity of all those involved in the criminal conspiracy, payments to the drug kingpin were made using bitcoin.
The U.S. government understands the value of bitcoin, and while they still aren’t sure how to regulate it, they are more than willing to engage in commerce. The U.S. Attorneys in Utah want to immediately liquidate their new stash of bitcoin while the exchange rates are favorable – worth as much as $8.5 million. There’s a long history of US law enforcement seizing bitcoin from criminals and then selling it to fund further law enforcement efforts.
Bitcoin Is a Risky Investment. Ripple’s XRP Could Be a Safer Bet.
Only the future will tell whether cryptocurrencies like bitcoin and Ripple are treated as an asset or a currency by the IRS. But one thing’s for sure: everyone is looking to cash-in on the explosion in cryptocurrency.
I personally believe that bitcoin will implode within the coming years, leaving Ripple’s XRP as the strongest contender for status as a federally approved digital currency. Why? First, just 1,000 people control over 40% of the bitcoin currently in existence. To me, this screams pump and dump – think Wolf of Wall Street. No, seriously. Jordan Belfort, the basis for the hit movie, views bitcoin as a financial scam that will make money for those that get out at the right time, but will leave everyone else holding a virtual wallet full of low-value currency.
There’s also a concern around the team behind bitcoin. It’s completely anonymous, with rumors swirling about who the founder of the currency may be.
Ripple’s strong corporate governance, with experienced industry innovators, should help ensure that XRP stands the test of time. And their money transfer platform will continue to revolutionize the way financial institutions process currency transfers on behalf of customers.
Disclaimer: I do not personally own XRP. I have zero vested interest in any of the topics discussed in this article. As a passionate self-made entrepreneur, I enjoy giving back by offering insight to those building their own ladder to financial independence. I hope that the issues discussed in this article help others make wise financial choices that empower them to achieve their goals in life.