by Tanzeel Akhtar
If you haven’t heard of XRP/USD already, now is a good time to get to know the digital currency. Though still low key, XRP has huge potential and could soon rival Bitcoin.
So what exactly is XRP?
XRP uses blockchain and distributed ledger technology. It is a global settlement network. In order to make a settlement, a fee must be paid in XRP and these are what trade on cryptocurrency markets.
XRP aims to provide a “frictionless experience” to send money globally using the power of blockchain. XRP has also been adopted by a number of banks including Spain's BBVA (MC:BBVA), Royal Bank Of Canada (NYSE:RY), Bank of America (NYSE:BAC) and Standard Chartered (LON:STAN). Indeed, buzz about XRP indicates it could have the potential to revolutionize the financial services sector.
Currently, XRP is considered to be the third most popular cryptocurrency after Bitcoin and Ethereum. At the time of writing, XRP was trading at $0.186. The currency has a market cap of almost $9 billion, after starting the year with a valuation around $250 million.
XRP: considered exciting and solid
Jeremy Epstein advisor to OpenBazaar, IOTA and ZcashXRP explains he has been a fan of XRP ever since he read the XRP whitepaper fifteen months ago.
Epstein says:
“I was excited about XRP. I think their focus on a specific use case and being the common overlay for the global banking system of settlements is spot on. The effort to make XRP a de facto settlement coin is strategic brilliance.“
He adds:
“At the same time, as banks continue to mobilize on the blockchain front, they have an existential threat in the form of industry consortia that, sensing XRP's potential dominant role, will respond in kind. The good news for XRP is that consortia have a poor track record, so I like their chances.”
Another huge fan of XRP is David Drake, the chairman of wealth preservation firm LDJ Capital. Drake is also enthusiastic about XRP. “A lot of people in the beginning question XRP but now when they are doing the second round of fundraising for XRP Labs I expect a larger valuation. It is not inconceivable that this may simulate the trajectory of something like Uber down the road.” he says.
No digital currency hype
Another cryptocurrency commentator said there is “no hype” concerning XRP. Xavier Hawk, founder of Permacredits and Phireon notes:
”While some other currencies have bravado and hype, XRP has revenue, clients, and a strong position in the market.”
Hawk describes XRP as the “quiet turtle plugging away with its eyes squarely set on the right prize which is revenue”.
Hawk adds:
“XRP is establishing itself as a solid organization with its priorities set straight. Since the beginning of its inception in the market it has gone after the right clients, built the right networks, and provided value to the banking world behind the scenes irrespective of all the hype in cryptocurrencies."
Kamil Przeorski, co-founder of platform Experty.io said:
“XRP has immense potential. XRP has a unique market position compared to other currencies. It has been getting stronger in the market over the last few years.”
Przeorski thinks XRP bridges the gap between old style bank-type infrastructure and brings financial institutions into the new era of blockchain technology.
“It's in a great position working with banks and can expand into other products or services and that's where it has strength over others. These partnerships will allow XRP to continue to expand and become more valuable.” adds Przeorski.
As more and more investors and financial institutions gain understanding of the latest wave of digital assets, XRP will undoubtedly see increased interest.