Ripple (XRP) is the native cryptocurrency of the Ripple payment network. The purpose of Ripple is to connect banks and other major institutions for the transfer of money and other assets. The transactions are recorded in the XRP decentralized ledger. Ripple claims to facilitate cross-border money transfer by reducing the time (4 seconds as opposed to several days in conventional banking) as well as transaction fees. XRP is used to pay for transactions in the network. Ripple is able to handle 1500 transactions per second (as opposed to Bitcoin’s 7).
Ripple was founded by Chris Larsen and Jed McCaleb in 2013. Ripple (XRP) is currently the third most popular digital currency in the world, with a market capitalization of more than $12.5 billion. XRP itself is implemented in the C++ programming language, utilizes the ECDSA hash algorithm and is not based on blockchain technology. Unlike Bitcoin, Ripple is not mined and uses gateways operated by the company’s servers around the world.
Ripple price prediction
The market capitalization of Ripple (XRP) is currently $9,3 billion. Ripple price peaked at $2.28 in December 2017. The popularity and price of Ripple depend largely on the number of bank partners that use the Ripple payment system. When in 2016 the company signed contracts with more than 20 banks, the price skyrocketed by 200%.
Ripple is an unusual cryptocurrency: as it is not mined, all 100 billion XRP coins have already been created, but only 43% of those have been issued into the market. This is what dictates the low price of XRP ($0.21 as of December 2019). As the number of coins decreases, the price will naturally grow.
As the price of XRP depends largely on partnerships with banks, it is hard to predict its price with accuracy. Either way, the consensus among cryptocurrency experts tends towards a steady gradual increase in the price of Ripple. In particular, WalletInvestor predicts XRP to reach $0.46 in 2020 and even $2.32 by 2025. Read more
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