Ever since the emergence of Cryptocurrencies about a decade ago with the invention of Bitcoin, the wide acceptance of digital currency as a form of transaction virtually and making online payment has continually been on the rise. Cryptocurrencies that aren’t Bitcoins are commonly referred to as Altcoins or “Alternative coins”, which were created to challenge the existence of Bitcoins in terms of operation. While Litecoin is considered in the crypto world as the most popular Altcoin and rival to Bitcoin, another challenger to the existence of Bitcoin in the crypto market is newest market darling called “Ripples”.
What is Ripple
Like most other popular Cryptocurrencies which came into existence after Bitcoin, Ripple was established as a cryptocurrency and mode of payment for financial transactions by Chris Larsen and James McCaleb in 2012, The creation of Ripples was to aid the finalization of financial transactions for banks. Ripple is also referred to as “XRP”. It operates on a medium known as “Gateway”. Gateway serves as a bridge or transmission that ensures transactions are sent and received utilizing the platform.
What is Bitcoin
The Bitcoin is the most popular as well as the pioneer Cryptocurrency which was introduced by a developer in 2009. Bitcoin was introduced to challenge the monopolization of political and financial institution, that is the power governments, and banks wield over money. In order to make transactions virtually and online payments easy for traders. Bitcoin as a leading Cryptocurrency differs from money based on its possession of value when used for trading as against having a physical presence.
5 Reasons Ripple is becoming popular
The steady rise and popularity of Ripple in the cryptocurrency market is traceable to its modus operandi, which is based on simplicity as compared to pioneer cryptocurrencies like Bitcoin. Ripple, like Bitcoin, is conscripted to use the blockchain technology which enables the ease of transacting and debt settlements for significant stakeholders in the financial circle.
Benefits From Other Cryptocurrencies
Key among the reasons for the growth of Ripple is also the fact that it’s benefitting from the performance of other Cryptocurrency in the stock exchange market especially Bitcoin. Ripple, unlike other cryptocurrencies, is crafted to work with financial institutions and banks. Also, for every decision to utilize a crypto, Ripple gains a percentage of 3.76%. It doesn’t go without mentioning that the rise of Ripple is also traceable to the easy grasp of the cryptocurrency by the market in which it functions as well as the receptive arms it enjoys and values that have been placed on digital currency, Ripples in particular.
The existence of a business either successful or otherwise can sometimes culminate in the growth of another, this is the best way to describe the relationship Bitcoin shares with Ripples in terms of business competition. While it’s surprising for many to marvel at the rate Ripple has continually amassed popularity, increase and widespread in the market, more surprising is the fact that Bitcoin as at the time of this writing is a major reason why Ripple keeps increasing. You might be curious to ask how? It’s because investors have seen the value that’s obtainable in cryptocurrencies via Bitcoins. Hence, in order to rival Bitcoin, investors who aren’t financially strong settle for Ripples due to its affordability, price, value and popularity in the market.
The accessibility, speed of delivery when transacting, has increased the level of confidence of stakeholders of the crypto market in Ripple, consequently ensuring the potential of XRP as Ripple is widely known keeps rising based on its ability to ensure maximum productivity, efficiency and ease when players utilize Ripple.
Collaboration and publicity
The new competition for businesses all over the world is building collaborations or partnerships with other organizations in order to foster mutual growth and development. Ripple has rightly placed itself on a right pedestal with the business deal it struck recently with a United States of America company, American Express, which made it possible for Americans to have a first-hand encounter with Ripple as a heavyweight in the financial space. This effort has increased the influence, and awareness Ripple has garnered within a short frame of time. Thus further making it the darling of cryptocurrency investment.
Ripple has gained more popularity today based on the level of wide acceptance it enjoys by financial institutions all over the world. This makes it very easy for the people who possess Ripple in their account on the virtual space to exchange or convert them easily with the help of these banks.
Furthering on the collaboration move, Ripple continues to make a bold statement in the cryptocurrency world with the partnerships it reached with SBI Holdings to introduce SBI Ripple Asia to commence activities in Korea, Taiwan, China, Japan, and Asian countries by creating a dedicated sales and engineering group with a target of marketing and installing solutions for bank payments outside of China.
The possible support of coinbase
The power that Coinbase wields in the cryptocurrency market is undeniable. It currently projects a possibility of dislodging banks for the digital currency, whereby capital, loans, funds will be stored and based on Coinbase as against money. This has led to the widespread belief that Coinbase is considering the trading, buying & selling of XRP on its platform. The effect of this will be an increase in buyers of XRP on the Coinbase platform.
The efficiency and easy grasp of customers
Most of the clientele of Ripple are financial institutions all over the world who continually enjoy the ease and speed that comes with transacting with Ripple, it takes 4 second and a low fee to transact on Ripple. This has placed Ripple higher as compared to other cryptocurrencies.
Many investors tend towards Coinbase at inception, however, while Coinbase allows the Bitcoin, Litecoin and Ethereum on its platform. There’s been a tilt of investors towards Litecoin, a major Altcoin recently, which has culminated in the growth of Altcoin.