Ripple (XRP) Love it or Hate it – It’s here to stay

There is a lot of discussion in the crypto community of late around Ripple and their currency XRP. Due mostly to is recent rise in value and moving into the number 2 spot of the most valuable cryptocurrency, with a total market cap of 120 odd billion dollars, not too far away from the king of cryptocurrencies, Bitcoin at around 270 billion dollar at the time of this writing.

Ripple doesn’t equal XRP

Most people make the assumption that Ripple is XRP, but it isn’t. Ripple is the company that created XRP, XRP is the token that powers the Ripple blockchain.

The general consensus around XRP is that it is not a decentrialised currency and is governed by the company Ripple. This is not entirely correct, it is true that whilst the Ripple blockchain started as being centrialised, as more and more validators are added to the network the blockchain becomes more and more decentrialised.

Validators in Ripple are the equivalent to nodes on the Bitcoin network. Essentially they validate the transactions across the network to ensure there is consensus with all transactions and that they are all true and valid.

Why the long face Ripple haters?

So, why all the hate for Ripple? Ripple’s primary focus is the transfer of money between banks and financial institutions therefore their target customers are banks! Now in the crypto community, the banks are the evil overlords that define and control pretty much everything in this world. They hold “your” money and quite often decide where and when you can spend it.

You may think you have control, but in fact you don’t, in most banks’ terms and conditions it is defined that any money you deposit with them becomes their money and they allow you to use it, mostly when you want to, but only if it doesn’t offend or threaten them. Enough about banks – I digress…

So, now we know what Ripple is primarily for, it’s easy to see why there is so much angst for Ripple. It is quite commonly said that Ripple are “in with the banks”. In actual fact, banks are simply their customers, and why shouldn’t they be? Ripple created a fast, efficient and cheap blockchain to enable cross border payments between countries to one day try and replace the old and antiquated SWIFT payment system. The SWIFT system currently moves trillions of dollars around the world each day and can take days to perform transactions.

Ripple XRP

Blockchain capacity matters

Currently the 2 most popular blockchains, Bitcoin and Ethereum are full, meaning that transactions can take hours and sometimes days to be confirmed as there are constantly 1000’s of transactions backed up in the queues waiting to be confirmed, and in the case of Bitcoin can be expensive! A single small transaction costing as much as $30+ to perform.

Ripple on the other hand was built for speed and efficiency, a transaction on the Ripple blockchain usually takes mere seconds and the transaction cost in the low cents range. It’s easy to see why Ripple would be chosen as a tool to move money around the banks. The speed, efficiency and cost is a huge factor to consider and the savings from a bank perspective is huge!

As much as people don’t like it, governments, banks and fiat currency are here to stay. Consequently it will be a great many years before the world could or would accept cryptocurrency as the primary source of commerce. Therefore banks must exists as a means of currency transference.

My conclusions

The way I see it, and this is just my personal opinion… Ripple are doing what any good business should be doing, making money… and who has a lot of it? the bank! Ripple, XRP and the blockchain can cement the financial industry into the blockchain space. As such, this can only be a huge benefit to the cryptocurrency industry as a whole. This is because it further legitimises blockchain technology and brings it even more closer to mainstream society. As far as I’m concerned it’s a win/win for everyone!

Disclaimer: This content is purely the authors opinion. As such, the author nor Crypto Currency News Australia ( has any affiliation or contact with the company Ripple. The author is a holder of XRP and many other cryptocurrencies. Nothing written here should be taken as financial advice. Investing in any cryptocurrency should be done in consultation with your financial adviser.

If you are interested in writing about cryptocurrency then please get in touch via the contact form.

2 thoughts on “Ripple (XRP) Love it or Hate it – It’s here to stay

  • January 8, 2018 at 12:22 am

    Wish I didn’t sell mine in haste now haha. Oh well we move to the next one :).

  • January 8, 2018 at 6:08 am

    Not to worry Adam. Many people believe that XRP is a long term play. Plus it’s fallen 30% over the past few days. Perhaps it’s a buying opportunity?

Leave a Reply

Your email address will not be published. Required fields are marked *