If the year 2017 be named as the year of Bitcoin, it will not be an exaggeration at all. Last year saw an unprecedently high rise in the cryptocurrency bitcoin. The digital coin started the year at $1,000 and went up to $19,000 until the end of the year in December. Currency trading experts analyze it as a positive move as the world with the rise of bitcoin has started recognizing the presence of cryptocurrency.
Before the development in bitcoin price took place, people were even unknown with the name of cryptocurrency, let alone the phenomenon of it. As the uses of bitcoin came in the forefront, and companies began accepting it for deliveries and payments, others currencies working on the same structure like Ethereum, Litecoin, Ripple and more captured the interest of investors and traders as well. Bitcoin has also been given an entry into the futures and options market. Chicago Mercantile Exchange and Chicago Board Options Exchange have given way to the trading of bitcoin, introducing people with the perspective of trading for other cryptocurrencies as well.
The year 2018, just like Bitcoin for 2017 is forecast to be the year of Ripple. The article is going to list all the aspects that are going to make the blockchain based Ripple the currency of the current year and revolutionize the idea of money for the world.
Why Ripple is the currency of the year.
In terms of market domination, it is the second largest with $142 billion while Bitcoin stands at $251 billion.
The currency Ripple started from as low as $0.0065 at the beginning of the year to $2.47 per coin at the end of 2017. The sale of each coin at this price at the year end implies the profit of 37000% for someone who had invested in the currency.
In terms of market capitalization, the blockchain based tokens called Ripple rank at number 2. The number 1 currency that happens to be bitcoin has a total market cap of $ 276 billion, which makes 35% of the total crypto market in the world as per the statistics by Yahoo finance. The recently surged Ripple that stands as the 2nd largest currency by market cap was at number 3, but recently surpassed Ethereum’s 73 billion markets and jumped to assumed the 2nd place with the market cap growth up to $120 billion.
Here’s what you need to know.
The huge amount of a market cap in the currency market is sure giving Ripple the edge a currency needs to make the mark in the market. With a market cap of this size, there is a great possibility it will attract a large number of companies, organizations, and investors that look for security in the form of pool or liquidity, financial stability and dividend payments that investors need to stay in the market. As the capital size grows, the chances of flocks of investors coming to put money in the currency increase too.
Entry into the largest exchange.
According to sources, the largest exchange of Canada Coinsquare is going to start trading Ripple and give investors a new option with cryptocurrency. Following the news, it can be predicted that the XRP rising price will convince Coinbase to add Ripple to the exchange. Although Coinbase has recently denied the rumor of it adding Ripple to the platform, there are great chances it is going to begin trading new currencies from the Coinbase.
In case, the currency gets added to the platform, the transaction fee, other than the entry into Coinbase exchange is one thing that is going to provide an incentive to the investor. The transaction fee of Ripple will be around a fraction of a cent, whereas the fee that’s charged in the name of bitcoin transaction starts from around $30.
Partnership with banks.
The last few years saw development not only in the Bitcoin but also its underlying technology. As the world is coming to know about cryptocurrency, they are also now exploring the possibilities offered by blockchain. This is the reason the blockchain tokens Ripple are going to change the places where blockchain has a role to play. The blockchain has a potential to change the way banks and financial institutions work in the world. The basic purpose of ripple is the settlement of cross-border transactions through its blockchain network.
Since 2016, when the idea of banks using a blockchain backed cryptocurrency was still a novel one, ripple announced its plan to test it with 5 big banks of the world, including UBS, Canadian Imperial Bank of Commerce, Banco Santander, UBS, and Unicredit. However, the major development was seen in the shape of Ripple partnering with American Express and the Banco Santander. This step is the successful manifestation of the basic idea behind ripple that happened to be the settlement of international transactions. This is going to resolve the long-standing issue of payment delays and exchange of currencies.
As Ripple has made a contract with American Express or Banco Santander, the terms of contract bind the non-card users of American Express to have their transactions directed through the Ripple’s blockchain. The involvement of these institutions in the Ripple business is definitely going to give a boom to the currency and its application, promising a future to the investor arriving in 2018. If ripple can solve the issue and work to provide same services as banks, the tokens propose to have a potential of great changes in the money business.
The Futures and Options Trading.
Since the currency Bitcoin went to CME and CBOE, there are different options presented to the buyers in the name of future and option trading. Similarly, Ripple is also open to such options when it comes to trading. As soon as a currency enters the futures market, the price hike of the currency becomes less of a concern for the trader, rather the interest changes to his proper analysis of events and then the forecasting of the fluctuation in prices of the currency.
The available options now are not just the purchase of the currency Ripple but, the underlying phenomenon of future trading that’s based on estimating the price of ripple against the ripple.
In most cases, when investors are skeptical about investing in a currency they are not certain for the place in future. An investor can enjoy a profit with futures and options trading in cryptocurrency even when the currency is in a dip. It doesn’t matter if it’s going stoop or steep in prices.
As the cryptocurrency Bitcoin faced a phenomenal rise 2017, the investors are looking to find hope in Ripple to be the currency of the current year. From large market capitalization to the future trading, from enabling Blockchain backed system for finances to the collaboration with American Express and tokenization, Ripple has all the positive things to its credit to allure the investor and provide the best use for their investment in the year 2018. The currency Ripple has a great future ahead, which can easily be gauged only by its 37,000% hike during the last year.
Waqas Javed is a digital marketing strategist and helping companies to maximize online reach with his unparalleled skills. He has a practical experience of more than 5 years. Nowadays, he is serving at Fuad Ahmed blog where he is working on optimization and promotion of the blog.