In comparison to the crypto-juggernauts Bitcoin and Ethereum, Ripple is a micro-cap choice.
Investors in XRP, on the other hand, tend to enjoy the smaller cryptocurrency’s development trajectory in comparison to its larger peers.
Indeed, when any “investment” expands in size, the likelihood of long-term growth diminishes.
Those that are enthusiastic about a growth sector should concentrate on the smaller-cap companies. That is if investors believe that such businesses (or, in this case, cryptocurrencies) have a chance to grow their influence in comparison to their counterparts.
When XRP launches, investors had a specific goal in mind. The founders of Ripple sought to create a cryptocurrency that could use in real-world scenarios. This is a very important point to keep in mind for investors.
Cryptocurrencies are the most digital coinage with no clear road to becoming a widely accepted payment option. It is possible to argue that certain digital tokens are indeed a store of value. Cryptocurrencies, on the other hand, have minimal utility in terms of being “currency-like” in everyday transactions.
XRP, on the other hand, create to process payments. XRP, in particular, solves a major issue in cross-border payments involving two different currencies. Transactions can settle almost instantly thanks to the XRP decentralized blockchain technology.
This technology is a major upgrade for people who are familiar with the SWIFT method. A real-world improvement is having a transaction approved in as little as 3-5 seconds rather than 1-5 business days.
Ripplenet, XRP’s existing worldwide payment platform, is another important point to consider. This is a decentralized network that uses the XRP ledger and cryptocurrency to provide users with a global payment platform.
This platform utilizes widely around the world and is gaining in popularity, albeit perhaps not to the extent that many had anticipated in previous years.
The key benefit of using Ripplenet is to avoid the transaction difficulties that come with international transfers. When doing an international transaction, there is a lot to consider.
Ripplenet eliminates the need to load foreign money onto an account. Paying a financial institution an (often substantial) currency conversion fee is another example. Of course, the most inconvenient aspect is waiting days for the transaction to clear.
Ripplenet offers enterprises a more cost-effective and efficient solution. On both sides, transactions settle instantly and in the local currency. Large international corporations and people with cross-border financial needs will undoubtedly benefit from this.
In general, cryptocurrencies are still in their infancy in terms of widespread adoption. However, as previously said, XRP’s real-world applications are appealing.
As a result, it’s likely that investors with a little spare cash and a penchant for gambling on speculative assets may investigate Ripple. Ripple’s use case is obviously intriguing in terms of long-term betting. The great applicability of XRP in comparison to its crypto rivals is appealing.