Five Reasons Ripple is Not Like the Rest of the Pack
Ripple (XRP) is way up with the leading crypto coins- but does it in fact have much in common with them?
Ripple (XRP) on the surface looks just like yet another up and coming crypto coin. However, Ripple, for good or ill, is different. Some crypto investors believe XRP is not the asset they are looking for. So here are the five ways Ripple is different compared to other high-float, relatively low-priced coins.
1. Ripple uses hard-to-get hardware.
Ripple uses servers- no problem for big organizations to acquire and run. But small-scale miners, or simply Ripple fans, are out of the game. Their machines or GPU cards can do nothing for XRP. So in the end, the Ripple users may gain speed, but they will rely on a network built chiefly by banks. Buying a Ripple server is not totally out of the question, but it would still remain a niche game, making the coin more centralized and not fit for the regular tech-savvy supporter.
2. Ripple Value May be Centrally Dictated.
XRP is a tradable asset, and yet after the lockdown of a large part of the coins, the price truly took off. In the next few years, the price of Ripple may be affected by the stages of the selling program, as millions of XRP are released and bought back every month. In addition, banks in fact may get their XRP for free, as an incentive.
3. Ripple May Not Have Intrinsic Value.
While XRP coins have a fixed total supply and some may be destroyed, no one knows how the actual 100 billion supply would be used. In theory, the Ripple network can replace the SWIFT banking system. And XRP coins may carry transactions in an unknown ratio to the real assets. No one knows yet how XRP would represent EUR, USD or other valuable transfers, nor how many coins would be burned or used for that reason. Ripple would be rarely used to purchase value outside of the financial sector, and its fate is tied up to how much it is used by banks, not regular customers.
4. Holding Ripple in a Wallet is a Bit More Challenging.
Most Ripple users rely on Ledger to keep their holdings, or store them on exchanges for lack of a better option. Ripple's wallets work a bit differently, and may create confusion, losses and some locked funds. There is also a minimum balance of XRP to hold, and this may be altered as the price of the coin changes. And while XRP is not so difficult to use, its specific wallet challenges may mystify some users.
5. The Community Does Not Participate as Much.
XRP is a thrilling asset- but the project's fate is not up to the community, or about achieving organic growth. While buyers are enjoying the gains as the price may rise toward $3, and are expecting the XRP asset to have the leading market capitalization, higher than Bitcoin, there is little that users can do to foster adoption, since it is mostly about banks using the coin. The community would only be interested in reaping the benefits. With this, XRP is quite different from open source projects, or other coins that rely mostly on organic growth.