What Is Ripple?
Cryptocurrency. The name alone brings many thoughts to mind with one of the first being a high-risk investment that everyone seems to be making money with cryptocurrency investments. Big leaguer, high roller, housewife, student, or plain ole’ consumer; there is interest in cryptocurrency. It’s taken the interest of nearly every consumer from every walk of life; as it is an investment that has taken penny investors to millionaires. With such profits already made, and digital currencies taking the net by storm, most know the reason for the interest in cryptocurrency. So, what is the Ripple in this high-risk money-making, or loss, investment of cryptocurrency?
Ripple is a payment system; Ripple XRP is its cryptocurrency; and, the fourth largest cryptocurrency in the world by market capitalization. Ripple internal currency is called XRP, also called “ripples.” Like Bitcoin and other digital currencies, it can be sent from one Ripple account to another Ripple account. Ripples are designed to protect the network from abuse. Originally, the founders of Ripple created a ledger with 100 billion XRP, and unlike Bitcoin, there is no mining for coins. There is no need to download a blockchain to validate a transaction as it can verify any transaction in just a few bytes. What is its market capital? Currently, 43 billion; an impressive number in itself. In fact, among cryptocurrencies, Ripple XRP has become more popular than Bitcoin and Litecoin.
With Ripple, the virtual money is kept in wallets or e-wallets of the money holders. The accounts have regular and master passphrases; for everyday use, a regular passphrase would be used, and to change settings or phrases, the master passphrase would be used. The wallet information and transaction annotations are stored in encrypted form in the currency’s network, so the user remains anonymous.
The currency is a bit different from other cryptocurrencies in the way that it allows users to have balances and trust limits between their accounts. In other words, the currency uses the IOU metaphor. Users can create IOUs; but, not another Ripple, account holder. Ripple account holders can also choose what type o IOUs they will accept and in what amounts. So, in other words, if you do not want to accept IOUs from your Great Aunt in Minnesota, or overseas, you don’t have to. When a Ripple account holder issues an IOU, it is not mandated that they settle with the other account holder if there is no settlement agreement. Simply put, do not accept IOUs if you do not have faith that they will have future value. When you accept an IOU, should the issuer default, you will be out of the amount of value of the IOU. This is an area that is a little risky, as nearly anyone can default due to different reasons like family emergencies, death, or a change of lifestyle, which leaves them sliding down the ladder as their salary has changed.
Ripple is a payment system. Yes, it may sound a little confusing. What is the cryptocurrency? Ripple XRP is the cryptocurrency with Ripple being a payment system that supports the currency. The currency is an open source that is distributed peer to peer payment network. While that may sound a bit confusing to those new to the Ripple as other cryptocurrencies like Bitcoin users must mine for the coins or invest in them with a cash payment. So, does Ripple cost? Or, can you just fill your e-wallet and begin writing your IOUs in exchange for a product or service? Ripple currency does cost. It is an investment like Bitcoin or Lifecoin; however, it is a lower dollar to invest in, as of now.
Ripple is a digital currency that has soared in value from its first release. Originally, the cryptocurrency was valued at under $0.01 a coin and is now valued at over $1 a coin in less than a year’s time. When you invest in Ripple XRP, you can consider Ripple its payment network. Ripple is a platform that allows easy transfer of nearly any currency in the world to any other currency in the world within seconds.
Ripple is a bit stronger in the area that it is trying to strengthen its digital currency by working with banks and other institutions, hoping for their bid to be accepted that they feel would provide an efficient and cost-effective way to send money around the world.
To buy Ripple, one can purchase it using other cryptocurrencies like Bitcoin. One platform called Bitstamp allows users to purchase the digital currency using their local currency.
Is Ripple A Good Investment?
When you consider “what is a good investment,” you may immediately think that Ripple is one of those investments. Factors that make up a good investment include price- Ripple is right there. There are many other factors that support the digital currency being a good investment:
- The 4th largest digital currency by market capital
- The currency is scalable
- The currency has launched over 75 global banks
- Ripple network can cut bank’s global settlement cost up to 60 percent
- The developer behind the scene are knowledgeable and strong
- The payment system is one that is fast, being able to transfer currency in about four seconds.
As with any investment, and especially that of cryptocurrency, research is necessary before deciding whether the investment is a good investment for you. Ripple offers an opportunity to get in at a ground floor level, although, the currency has been out since 2012; but, it has skyrocketed in value over the last year. Yes, it appears that it is a good investment, but again, do your research and make an informed decision.