One of the fastest growing cryptocurrency platforms out there, Ripple (XRP) is the third largest crypto by market cap as of 2018 and is poised to grow even faster thanks to an adaptable, versatile platform and growing acceptance on mainstream exchanges.
If you own Ripple, or you are thinking about getting some XRP to get your hoard started, there are a couple of things that traders like to know.
Mainly we are talking about current price versus future value, but we are also talking about the platform’s strengths and weaknesses.
After all, cryptocurrency trading is still a relatively new art and, like anything new, that aren’t any established practices to help guide traders in their decision making with regard to the currency.
In this article, we’re going to discuss some of the things that could impact the price of Ripple in a positive or negative way. Naturally, we will present things as strengths and weaknesses, as well as give you some insight into how it will impact Ripple’s value.
Overall the goal is to give you enough information so that you can make your own informed decisions about what to do with your Ripple holdings or even whether you should start buying now.
Ripple (XRP) Price Predictions : Factors Working In the favor of Ripple Price Growth
1 Competitive fees versus traditional banking
Sending and receiving money has a lot of fees attached to it, especially when sending it overseas. One of the major advantages of the Ripple platform is that it offers really low fees for the amounts of money being transferred. This benefits the consumer and helps establish Ripple as a viable alternative to traditional banking methods. Analysts are predicting that the sending and receiving of payments on a global level will grow as time moves forward making it a large market that Ripple can tap into.
2 Partnerships with Banking Institutions and Corporations
Because of its security and how cheap it is to remit money through it, Ripple has a lot of buy-in from major financial institutions as well as corporations that are eager to explore it as an alternative to traditional banking. The main advantage of these partnerships is that Ripple could end up trickling down to the mainstream at a faster rate than its competitors. A future vision sees bank customers and corporations transacting in Ripple when making payments to overseas entities, a market that could catapult Ripple’s value well beyond that of its rivals.
Because of its adoption by major companies and financial institutions, Ripple enjoys a level of market credibility that the other major cryptocurrencies lack. Trust is the foundation of building value, and Ripple is quick to build that through an ever-expanding network of partnerships and collaborations.
4 Controlled Release of Coins
Unlike some of the other cryptocurrencies which are completely dominated by market forces, Ripple has a large amount of its free currency stashed in escrow. This is so that the aforementioned partners can explore the platform’s uses and buy into the system at the rate at which they are comfortable without causing huge disruptions to the market value.
5 Smart Contracts
Ripple has recently introduces A New Platform for Smart Contracts for the ripple Blockchain called Codius.which will essentially grant XRP with the similar functionality as what Ethereum currently offers.
Ripple (XRP) Price Predictions : Factors Working Against Ripple Price Growth
1 Lack of Widespread Exchange Adoption
Though it has tied itself quite handily to the world of corporate partnerships and the like, Ripple is still struggling to gain adoption by cryptocurrency exchange users on the same level as Bitcoin, Litecoin, and Ethereum. While this isn’t an issue right now given Ripple’s appeal to other audiences, it could have a negative impact in the future of those partnerships fizzle out and disappear.
2 Government Regulation
Any cryptocurrency is prone to this but Ripple is particularly undermined by the threat of government oversight and regulation because it is at the forefront of developing new ways to handle contracts and payment systems. Scrutiny of any kind is likely to have a downward impact on the value of Ripple even if it is a positive thing in the long run.
3 Using Ripple Doesn’t Mean Using XRP
One thing about Ripple’s technology that may not have any impact or a potentially negative impact on the value of XRP is that the technology developed to use Ripple payment systems do not have to use Ripple (XRP) as the medium of transaction.
Like with any cryptocurrency that gains traction, Ripple will have a ton of competitors out there gunning for its position as the go-to cryptocurrency for smart transactions and the like.
5 Cryptocurrency Privacy
One of the largest selling points for cryptocurrency is that it preserve user anonymity and privacy. This is undermined by Ripple’s direct appeal to banks and financial institutions. Though this is part of Ripple’s push to make smart contracts a thing in the future, the lack of anonymity that using Ripple may cause could undermine the whole point of a cryptocurrency from a user’s standpoint.
So, now what?
Ripple’s potential to achieve widespread success is highly reliant on its actual capability in delivering an enterprise-grade blockchain solution for payments worldwide. With growing actions of similar competitors namely Stellar, Visa and Swift, that leaves Ripple with one crucial decision to make. Either to secure stronger network of financial institution backings and expand its partnership reach with corporate giants or, retreat from the game for good.
Thankfully, Ripple did not disappoint so far.
Ripple’s CEO, Brad Garlington celebrated Ripple’s milestone in gaining new support from the industry’s big names through a special post on Twitter, announcing that 2018 will see XRP token be implemented in the payment ecosystem of the world’s top 3 out of 5 money transfer companies. This followed after a series of announcements that Ripple’s technology is being tested for real world adoption by banks such as Saudi Arabian Monetary Authority, UBS and Santander, as well as reputable organisations of global payment gateway system like Western Union and UniCredit and more.
To recap, in 2014 Ripple network was first utilised for cross-border payments by Fidor, a German bank. From then on, more prominent names joined the bandwagon namely American Institutions Cross River Bank, CBW Bank, Earthport, HSBC and Bank of America. Fun fact! Over a hundred financial institutions are currently using Ripple Transaction Protocol for money transfers.
Now, if Ripple could really deliver low transaction cost, high transaction speed and huge scalability prospect, there is no way for banks to not adopt the technology for public use and to remain competitive in the market. When banks finally do adopt Ripple’s technology for its key offerings, we foresee that the altcoin would greatly surpass its competitors in becoming the banks’ transaction processor of choice.
But that’s not all. Some of Ripple’s official partnerships is up and running. To name a few, Cuallix, a Mexican financial service firm will use XRP for overseas transactions whereas a pilot project by MoneyGram on utilising Ripple’s xRapid payment services would be happening. The magnitude of Ripple’s usage doesn’t show any signs of slowing down.
Ripple Price Prediction 2018-2019
Ripple has a promising technology that is relatively unknown of in comparison to Bitcoin and Ethereum. However, the altcoin has gained massive attentions due to a digital payment system Ripple Transaction Protocol and secured partnership with financial providers, and it wouldn’t be long for before the arrival of institutional investors leading a pack of followers.
Given the Ripple’s increasing popularity, backed by a well-developed platform coupled with exciting coverage in the media, XRP’s valuation is well on track to expedite in over the short, medium, and long-term. Here’re what the cryptocurrency experts are to say on Ripple price prediction in 2018:
Analysts at Forex news and analysis portal Fxstreet predicts that XRP price could well range between $3 to $5 by end 2018, an increase which is close to 10x from its current pricing. A more conservative forecast of a value growth by 3 folds for 2018 Ripple price forecast was also made. On this basis, the platform sees Ripple as one of the best altcoin investment to invest in 2018. The prediction was too supported by investment learning media InvestingPR.
Express.co.uk, a UK news media platform too forecast that Ripple’s price would likely to rise to a high of $5, lowest $3, also with a potential value fold of 3 times. Experts opined that 2018 could be the best time to own Ripple as its currently highly undervalued and long term investor can expect to make significant earnings. On top of that, Ripple is backed by a strong team of developers who are actively pursuing back to back improvement, marketing and partnership to the technology to strengthen its foothold in the market.
Taking into consideration of Ripple’s active developments and an observable trend of speculative activities, analysts believe that Ripple price in 2018 will surge to approximately $7 whilst a price of $10 could be possible as well. While a sharp increase in price is anticipated, investors can fall back on a minimum price of $1 by the end of this year.
Ripple Long Term Price Forecast
If you’re looking to hold XRP for the long term, say 10 years, pundits are rather positive that Ripple’s price could potentially hit up to $300. Considering that its current price is close to $0.3, this translates to a whopping 1000 times of this price. Definitely an exciting growth to watch for holders of large investments.
Our Verdict on Ripple’s Price Potential in 2018, 2019 and 2020
Backed by a string of strong financial services organisations and commercial corporations, Ripple is certainly an interesting project that could potentially emerge as a strong player payment processing if it can achieve widespread adoption particularly on regulating and facilitating instantaneous international fund transfers.
In fact, Ripple is poised to be the, or if not, one of the most efficient financial payment networks in the entire transaction history. With the presence of a trust chain-based ecosystem Gateway, all exchanges will be authorised by a credit intermediary thus improving overall integrity and prevent double spendings by the same source.
Although the largest challenge lies in obtaining the banks’ confidence on the new technologies, we believe that cryptocurrencies and blockchains are meant to complement financial corporations in areas that they’re lacking of. The clock is not just ticking on the coins’ side. Financial providers are scrambling to accept the emergence of blockchain and adopt these technologies as they’re well aware of potentially being on losing end- should they failed to integrate suitable technologies into real world offerings.
What we really like about Ripple is its positioning as a bank-friendly technology in contrast to other cryptocurrencies. This is an important element as not only it lowers the defense wall between the banks and Ripple developers, they are appear as the first key-enabler for financial institutions to adopt blockchain into its operation. On top of remarkable processing speed even in the existence of a high transaction traffic (mind you it’s in a matter of seconds) versus what would have taken conventional bank up to weeks for wire transfer.
We’d like to highlight that Ripple’s current price is around 1/10 of its all time high. Therefore, we perceive this undervaluation as an opportunity for a higher price growth in comparison to other altcoins, backed by aggressive partnership with marquee name corporations.
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