Why I am betting big on Ripple (XRP)
I am not a crypto crystal ball guru but I have been long enough into this game to have some good insights regarding the future of crypto currencies.
People are not going to like what I say but it has to be said: Bitcoin and few others are a massive ponzi scheme. Here are the 3 major reasons that make me believe so:
1) There is a major flaw into the design of Bitcoin: its cryptographic increasing complexity makes it unsustainable for a real world payment use case. If you pay your coffee with Bitcoin, it will get cold long before your transaction is approved (1h as we speak). That stands for some other currencies as well.
2) The level of energy required to validate these transactions is not “earth future compliant”. Think about that: it requires the full energy demand of Denmark to have this system running.
3) Bitcoin price surge is the result of a massive cash being pumped in by people who got disappointed with stock market returns and savings rates near to zero. And this will continue for a while, probably the whole year of 2018. There is so far only 0.1% of the planet that has got interest into this fast return game. As long as money comes in, price will go up with cyclic market corrections and benefits takeout. Every ponzi scheme has an end and this one will be ugly.
But there is hope into this great idea of crypto currencies. A new wave of currencies that have taken into account all the flaws and limitations. One of them is the Ripple (XRP). I started to look into that when its price was 1 cent.
Why do I believe the Ripple will be the winner:
- Its design allows any transaction to be performed in 4 seconds
- It takes much less energy to perform a validation and cost per transaction is less
- It is backed up by major payment institutions and could replace SWIFT for crossborder payments.
Today, Ripple is priced at 2.43 dollars and my guess is will be at 5$ by the end of January 2018, 10$ by the end of 2018. The big boost will happen when 2 of these major events will happen:
- Amazon and/or Uber will endorse it.
- Coinbase will add it to their listing
So is it too late to invest into this currency? Answer is no, you will still make x5 by the end of the year or before.
