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Why You Should Buy XRP

Good morning, it’s April 11, and this is The Block.  Big money--Rockefeller and Rothschilds and Soros

The Block

April 11 · Issue #32 · View online
Weekly curated #cryptocurrency news and commentary.

Good morning, it’s April 11, and this is The Block
Big money–Rockefeller and Rothschilds and Soros money–is starting to flow into crypto. Is this the end of the bear market? Are we headed to $35k? Or is the bubble still being popped? Is Bitcoin just a case of the flu? One Redditor explains why we shouldn’t be too worried about that “99% of alts die” claim (but you should still be diversified). And we’re six days away from taxes being due. Are you ready?

Why You Should Buy XRP
Today’s newsletter is a little different. I’m going to lay out the case for why you should be buying XRP, Ripple’s (the company) “it’s not a currency” token of exchange.
I’ve laid out what Ripple and XRP are in a prior newsletter–if you’re not familiar with them but you want to be, I suggest reading that BEFORE continuing on with this.
Ripple the company is likely one of the best-run, if not THE best-run company in the crypto/finance space. They have the finest management staff, their CEO is whip-smart and driven, their technology officers are brilliant and all of them are engaged in a multi-pronged approaches to increase user engagement, financial industry ties, solid partnerships, and of course, speeding adoption.
Don’t believe me? Check out profiles on Brad Garlinghouse, Chris Larsen, David Schwartz, Stefan Thomas, Corby Johnson, Eric van Miltenburg, and Patrick Griffin, to name a few of the luminaries in their stable. These people know what they’re doing. They have a long-range vision and are intensely focused on achieving that in their own timeline, not an arbitrary timeline forced on them by investors, shareholders, or even XRP hodlers desperate for a price rise.
That hoped-for price rise will happen, but this is not a plan that comes to fruition in a matter of months. This is years, even decades-long planning, an approach other US-based companies need to adopt if they want to continue to excel and dominate on the world market.
Here’s CEO Brad Garlinghouse on Ripple’s vision and apt comparison to Amazon, back in April 2015:
Amazon started as a bookseller. They built a model around selling books. And then they said we’re going to do electronics. I think the same thing applies here. If we’re going to have a chance at the 10-year vision, we’ve gotta make sure the 10-month vision takes hold first.
Ripple has also taken a “regulation-first” approach to their tech. By that I mean, they foresaw the need and inevitability of cryptocurrency regulations, and built their company and technology around that premise. As a result, their Interledger protocol, XRP token, and myriad products are all industry-ready.
This in turn aids and speeds adoption by outside vendors, especially the large banks and financial entities who are typically reluctant to move into new channels due to regulatory constraints. Where other cryptocurrencies are foundering in the waters of uncertainty (Is it a security? A utility? How will it be judged by the SEC? The IRS?) Ripple has adhered to existing regulations while simultaneously broaching new, battle-tested tech–called XCurrent–that fuses seamlessly with legacy financial asset exchange instruments, at a 30% savings.
More adventurous companies can take that a step further by fully merging their asset exchange program into XRapid, which provides an additional 30% savings on top of the XCurrent technology. It is XRapid which utilizes XRP tokens to facilitate cross-border currency exchanges.
It will be the widespread adoption of XRapid by the financial industry that will be the algae bloom on the pond that is Ripple.
Why will this happen?
Three things: Speed, Convenience, and Low Cost
Ripple’s tech can process 70,000 transactions per second at minimum, and that can be scaled. You can also bundle transactions, allowing you to send multiple transactions through as one, to be processed in parallel on the receiving end. VISA can’t match that kind of firepower, much less the current international standard for cross-border currency exchanges: SWIFT, which takes a minimum of three days to fully process a transaction.
Right now–RIGHT NOW–financial bodies can utilize Ripple’s XCurrent technology to marry their own proprietary ledger infrastructure to Ripple’s transaction ledger–this allows for savings approaching 60% on most transactions.
Right now twelve companies are currently testing or using XRapid, including MoneyGram, Western Union, SBI Securities, Arrington, Mercury, and Cuallix.
103 companies across the globe are piloting XCurrent or using it as a primary currency exchange.
With a flip of a switch, those XCurrent customers can be converted to XRapid. Once companies on the XCurrent system crunch the numbers, they’ll discover they can save 60 cents of every dollar with no technical hurdles. Assuming the tech proves reliable, resilient, secure, and cheap, it’s going to be a no-brainer.
If you’re interested I suggest you follow to keep track of these partnerships and Ripple’s continuing industry forays.
Low Cost
Right now, liquidity for cross-border currency exchanges is covered by at least $27 trillion dollars held in NOSTRO/VOSTRO accounts. Let me repeat that.
$27 Trillion.
The widespread adoption of XRapid would effectively eliminate the need to hold that capital in reserve, as XRP would be the token of exchange. And because of the insane speed of Ripple’s Interledger tech the volatility of XRP price is negated, because any significant volume of exchange can take place within a matter of a second or two, and so the slippage on that transaction would approach zero.
Why is this important?
Because as XRP’s value as a medium of exchange becomes more apparent, and as its usage increases and includes the BIG financial entities like Central Banks and LPs (Liquidity Providers), the value of the XRP token will increase astronomically.
I don’t want to be hyperbolic. And I suggest taking anyone’s numbers (including my own) with a grain of salt. I tend to fall on the “conservative” side of things, and I’m willing to put down a bet that XRP will be worth $38-50 in three year’s time.
I tend to be a believer in the school of thought that market cap is not only a mythological scorecard, it has no bearing when approaching the kinds of numbers potentially at play in a global cross-currency exchange market, so $38-40 is not only achievable, it’s quite plausible (even within the market cap metrics, it’s not untenable).
If this guy is to be believed, that’s lemonade stand money:
I hate that screenshot on the video, so focus on the technicals that he presents*. Even if you’re the most conservative person on the planet, you can’t ignore that if Ripple’s built-in advantages become the de-facto industry means of cross-border, cross-currency exchanges, XRP is going to be the global coin of the realm.
Ripple’s goals are not merely to be “yet another” cross-border payments vendor or source of exchange funds. As a Crypto Gazette article recently put it,
…it appears Ripple have an even grandeur plan in the pipeline. And the likelihood is that it will incorporate Western Union. Summarized, it simply boils down to one thing, and which many other cryptocurrencies are fighting to achieve: worldwide use if not complete takeover.
Industry leaders are starting to take notice, not just of the disruptive nature of cryptocurrency and blockchain/ledger tech, but in particular, Ripple’s own competitive possibilities. From JP Morgan:
This leads into my next point, which is Ripple, while disruptive, is also working alongside banks and retailers to integrate payments with them, rather than trying to replace those methods. To defeat the river, one must first work with, not against, the current.
So What Happens Now?
Ripple is sitting around $.49 right now. Even at its All-Time High of $3.20 it was severely undervalued. Its long-term outlook is extraordinarily positive as long as Ripple keeps its laser-like focus on fundamentals and reeling in high-profile partners and making industry standards.
I don’t give out “buy” recommendations often, because I believe you need to do your research and come to these conclusions on your own. But with Ripple and XRP, I’m willing to stake some of my reputation.
* Hopefully the accent won’t throw you.
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