Should I buy Ripple (XRP) in 2021?

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INTRODUCTION

Before investing in any cryptocurrency, but especially Ripple (XRP), it is imperative that you know exactly what you are getting into. Investing in Ripple (XRP) in the absence of prior knowledge and understanding is a prescription for higher chances of loss.

You see, Ripple (XRP) is not your typical cryptocurrency. It instead offers something entirely diverse from other currencies. It offers a brand new payment protocol delivering fast and easy international and cross-border payments worldwide. While at first blush this may sound like a solid potential investment, any potential investor must know what exactly Ripple (XRP) is, what it does, as well as all of the red flags associated with it.

In this subsection of the Ripple (XRP) Coin Guide, let's investigate the factors both in favor of and against investing in Ripple (XRP). Please remember that this Guide should be your starting point for diligent research on this subject and reliance upon one source for your investment decision is highly discouraged.

FACTORS IN FAVOR OF INVESTING IN RIPPLE (XRP)

  • Ripple aims to solve the problems encountered by financial payments systems (unreliability, long wait times, and high associated costs) by providing an alternative platform which is 100% secure, provides instantaneous payments, and is practically free.
  • In 2014, Ripple Labs was named as one of the smartest companies by MIT University, and slowly financial institutions began taking notice of Ripple. By 2019, more than 200 financial institutions started using some form of Ripple's offerings. Presently, RippleNet is utilized by more than 300 financial providers in 40 countries across 6 continents of the world.
  • Some of the large adopters of the Ripple technology include American Express, MoneyGram, and Santander Bank.
  • It is the position in the cryptosphere that Ripple possesses the potential to displace the SWIFT Network as the number 1 provider of global payments.
  • Ripple is presently priced at $1.12/coin, therefore coupling its price with its seemingly wide-spread appeal, gives Ripple the potential for a large return on even a modest investment.
  • While solving the aforementioned problems for financial institutions, Ripple also helps the economy by speeding the flow of capital in the system.
  • Should Ripple gain wide-spread acceptance, it would open millions of small business owners access to business within the global economy.
  • Ripple is presently ranked as the 7th largest cryptocurrency in the world with a large market capitalization in excess of $52 Billion. Within the cryptosphere it is held that a large market capitalization is a demonstration of investor confidence making it more resistant to the volatility of the markets.
  • Ripple Labs employs more than 500 employees, including employees in the areas of marketing and public relations. As such, the Ripple product is constantly promoted to banks, investors and new users in the financial system seeking growth. Accordingly, Ripple is not just another technology or 'crypto', it is a dedicated, viable, real company.
  • In March of 2021, Ripple announced they are spearheading the creation of private ledgers to be based on the public XRP ledger for use with Central Bank Digital Currencies (CBDC). It is Ripple's claim that this technology has the potential to reach hundreds of thousands of transactions per second. This opens the future possibility that banks and financial institutions could choose to use this private version of the XRP public ledger, thereby increasing value.
  • From most appearances, it seems Ripple is beginning to recover from its lawsuit brought by the US Securities and Exchange Commission. Some have sensed that the case behind the SEC's lawsuit is a weak one, and furthermore, some have expressed optimism the Ripple may in fact win. Nonetheless, recently the price of Ripple is on an upward trajectory.

FACTORS AGAINST INVESTING IN RIPPLE (XRP)

  • Unlike Bitcoin and Ethereum, all Ripple XRP coins have been pre-minted and are already in circulation.
  • Much of the supply of Ripple coins is concentrated in the hands of its Chairman and other Senior Board members. With such a high concentration of coins in so few hands there exists the possibility that XRP's price may be overinflated.
  • With such a high concentration of Ripple ownership in the hands of so few, cryptocurrencies core philosophy of decentralization is absent.
  • XRP is not a true cryptocurrency for many blockchain purists who claim it violates the principles of decentralization and economic autonomy. By its design, Ripple is for the use of the banking and financial industry, and its goal is to cure the ills of the traditional banking industry rather than becoming a store of value or a method for regular people to exchange value.
  • Ripple's competition from SWIFT is concerning as Ripple must convince the banking industry its product is better than the already accepted and established SWIFT system.
  • Ripple is not out of the woods as of yet with its lawsuit by the US Securities and Exchange Commission. This lawsuit will loom as a dark cloud over Ripple until concluded as the possibility exists that Ripple may lose the case.

TOKENOMICS

Per CoinMarketCap, at the time of the writing of this article (October 31, 2021 at 03:40 EDT) there is a circulating supply of 47,020,000,000 XRP. With the current price of $1.12 the market capitalization of Ripple (XRP) is $52,878,893,819. There is a total supply of 100,000,000,000 XRP coins authorized yielding a fully diluted market capitalization of $112,471,821,880.

A review of the price chart for Ripple over the life of the project shows that XRP is well off its all-time highs but has resumed an upward price trajectory following the filing of the SEC lawsuit, especially when taking into account external market forces and periods of unrelated project market volatility:

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RIPPLE (XRP) PRICE PROJECTIONS

WalletInvestor has provided a graph showing its price predictions for XRP for the remainder of 2021 and 2022 as follows:

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A summary of CoinQuora's 2022 XRP price prediction is as follows:

If this bullish trend continues, XRP will reach $15 by the end of 2022. Moreover, the first half of 2022 is going to show fast growth, up to $25. Then this rise will slow down, but no major falls are expected. With upcoming, partnership, and developments reaching $19 is quite optimistic in the price point of view but undoubtedly feasible for the near future.

[Reeta, A. XRP Price Prediction – Will Ripple Price Hit $10 Soon?. (Accessed October 31, 2021)].

And finally, a longer term XRP price prediction for 2025 from Cryptonewsz.com discloses:

As per the Ripple price prediction for the long-term (the next five years), XRP has been chosen as a bright game for optimism registering clear gains with prices within the $4-$8 vicinity. However, the most workable idea is to expect a midpoint of these price levels. Mass adoption could trigger future of XRP as an affordable and convenient digital asset. The price may surface as a minimum average of $6 in the long-term around the next 5 years.

[Cox, D. XRP Price Prediction. (Accessed October 31, 2021)].

Please keep in mind that while these price predictions paint a rosy future for Ripple (XRP) as an investment, they are just that - predictions. No one has a crystal ball that can guarantee future performance. As such, as a potential investor, you may take the prediction for what it is, as the same is no guarantee of future price performance of Ripple (XRP) due to the volatility of the cryptocurrency markets.

CONCLUSION

This subsection has provided you, the potential investor in Ripple (XRP), with the key elements to consider in reaching a final decision on this token. In reaching a final investment decision many differing opinions should be sought out. Reliance on one source is highly discouraged.

It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any final investment decision.

Please remember, this subsection of the Ripple (XRP) Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research. And as always, never invest more than you can afford to lose. Good luck!

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1 comments
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XRP just did well, since last week. But since past weeks I invested it. XRP have been selling but now is buying.i pray it will go for a long way.

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