Various large financial organisations often feel the problem while transferring money internationally. Well, ripple cryptocurrency came as a solution to this common problem. This digital currency or cryptocurrency was invented in 2012 and the names of the founders are Jed McCaleb and Chris Larsen. Read more about Pros and cons of investing in Ethereum
The reason behind making Ripple was to solve the problem of transferring international funds and ripple is serving that purpose quite well. needless to say, and we all know how hazardous the process used to be. Many times it used to be an affair of several days.
When Ripple was initiated, it was the solution to the problem to use the technology as well. the vast amount of usage of ripple cryptocurrency these days has various reasons behind it. It offers several benefits as well. with this Cryptocurrency, the transfer takes as few as four seconds on average. With the usage of ripple, it is only a negligible amount that one has to pay while sending the fund.
While modelling Ripple, the founders did it for corporations that focus primarily on international payments. The same purpose can be served using bitcoin and Litecoin as well; however, the charge of using these cryptos for international money transfers is a bit on the higher side compared to Ripple.
Very recently, this cryptocurrency has secured third place among the top cryptocurrencies in the world. However, the scope for developing and improving Ripple to a higher level has minimal scope. It is because the primary focus of Ripple is mostly on one factor which is international money transfer. When compared to bitcoin and Litecoin, these two cryptos have a better prospectus as they can be used for multiple functions.
A brief comparison between ripple and bitcoin
Bitcoins are and will be limited. The number is as little as 21 million. Although it seems a large number in terms of cryptocurrencies, it is a little number. When compared to Ripple, it will have a total hundred billion of the crypto of which already there are forty million in the transaction circle. Primarily, the corporation team of ripple decided to release 1B of it every month. However, they revoked the idea thinking that it will have a severe effect on the value of ripple. Releasing such big numbers of cryptos every month will imapct the supply-demand to a great extent.
While creating a ripple, the founders were very considerate about the other cryptos in the market or circulation. The primary goal of XRP was to become rival crypto to the already existing ones. The focus of it is completely different. It is designed in a way that it has scopes to improve purposes like making payments while buying something and bringing some changes in the traditional economical processes.
What is common between bitcoin and Ripple?
Both of these cryptocurrencies are not completely in circulation. A lot of the amount is still held. When 40 million is only circulating, it means there are still 60 billion in the possession the company. It is really easy for them to liquidate the remainder every month. But they are restricting themselves from doing that because it will highly affect the existing ripple cryptos in the financial sectors. The prices will fall.
Its unique and the sole reason behind making is making it a great business in the marketplace and international money transfer field. again, the primary intention was to make the payments or fundings smoother and not the traditional payments. However, most of its contemporary cryptos were initiated to become a popular means of exchange or payment.
The entire program of Ripple is multiple times faster than its other cryptos. It has a great network system which is working as its backbone.
Ripple is still a young cryptocurrency but it has taken the digital currency world by storm. The value of Ripple’s XRP token has grown exponentially in 2017. Many different factors have attributed to Ripple’s growth, including the fact that they are focusing on corporate partnerships to help expand its reach. Financial investment experts believe that Ripple will continue to grow in popularity throughout 2018 and beyond as its platform becomes better known to mainstream investors and businesses.