Have you noticed the recent increase in the price of XRP whilst bitcoin and litecoin have remained in the doldrums. What could have caused this?
I was unfortunate enough to invest in XRP when the exchange rate to the USD meant that one XRP or ripple was priced at around $0.04. Subsequently after the bitcoin price crash my holdings value fell to around $0.01. Feeling a little burned I decided to focus my attention on things other than crypto-currencies – whilst quietly keeping an eye on the bitcoin price.
The bitcoin price appears to have bottomed out and hopefully will start returning to growth again soon. It has been one of the worse performing investments of 2014. What I didn’t realise though was that this trend was being bucked by bitcoins less well known cousin – the Ripple (XRP.)
Quietly whilst I wasn’t paying attention to the wider world of crypto-currencies the ripple price has started to creep up – more than doubling since i looked and cried at the $0.01 price and as we speak it seems to be holding or increasing.
So what is different about XRP and Bitcoin – and why are they both behaving so differently? Well, despite both essentially being crypto-currencies – they do have some significant differences. Firstly, XRP unlike Bitcoin is pre-mined – this means that there are no new coins to be made – and all that aren’t in public hands are actually held by Ripple labs. This personally concerns me as there has to be a degree of trust towards the currency issuer – they hold the balance of power unlike bitcoins whereby most coins are distributed very far and wide. However, by choosing select partners to work with, the ripple XRP protocol has actually attracted attention and investment from several interesting sources which may have played a part.
Multiple gateways are opening every month this year, banks are signing up, Earthport, praise from executive level Federal Reserve members. They increased from 8 to 80 employees this year. They are now backed by Google Ventures and Andreesen Horowitz. They have 3 second transaction time, Codius smart contracts … and not one ounce of bad news (So far.)
I personally am going to hold onto my ripples and my bitcoins and see what happens. I have however got rid of my dogecoin and litecoin holdings.
Written by Tony Oliver.