There is something very odd happening in the world of cryptocurrency. Valued at just $0.24 at the start of December, previously little-known altcoin Ripple XRP is roaring toward a new 60-day price high of $4. In fact, even mainstream cryptocurrency market analysts can’t keep up with Ripple.
Less than 4-hours after reporting record-breaking highs of $3, a December 4th Fortune magazine article was out of date, as the centralized digital currency started making headway toward $3.75. The only question is, what is really driving the Ripple XRP price so high? Moreover, could Ripple be about to go bust just as quickly as it has boomed?
New Ripple XRP investors Need to Exercise Extreme Caution
Given the inherent price volatility of Bitcoin, it can seem disingenuous at first, to attempt to warn people off jumping on the Ripple XRP bandwagon. The big problem with Ripple XRP, however, is that the digital currency lacks any kind of proven real-world use case.
No – Big Banks Are Not About to Start Adopting Ripple XRP
Ripple XRP as a blockchain-based payment system is inherently different from other cryptocurrencies. This is because Ripple is primarily a payment system (rather than a standalone cryptocurrency) which was launched in 2012, in order to work with, rather than against leading financial institutions.
Ripple XRP in Brief
Put simply, Ripple is designed to provide a scalable software solution to ever-rising financial system infrastructure costs. What is more, big banks love XRP, due to the fact that it can rival existing SWIFT based payment systems by settling even complex cross-border transactions in seconds.
Given the cost saving and efficiency benefits involved with using the Ripple blockchain as a transaction instrument, leading financial institutions like American Express and Santander, have already started embracing Ripple. What many investors don’t seem to understand, however, is that banks which do embrace Ripple are by no means obligated to start using XRP as a form of digital currency.
The Big Ripple XRP Fake News Conundrum
Because banks which embrace Ripple don’t have any need (or even incentive) to start using Ripple XRP digital currency tokens, many argue that the current Ripple price is grossly unrealistic. This is why Ryan Selkis, Digital Currency Group co-founder, recently said of Ripple: “Banks are not required to use Ripple’s software, so unless banks are adopting the currency as a new global reserve, it [the current XRP price] doesn’t make sense.”
Where things really start to get worrying, however, is when one looks at how Ripple XRP has exploded in value in tandem with trending news stories which suggest that Ripple might arrive on Amazon and Coinbase in the near future. Many such ‘news’ stories, after all, don’t actually come from any kind of reputable source or Ripple XRP spokespeople.
No Ripple XRP is NOT set to Start Being Accepted by Amazon
In an article published by cryptocurrency news website ‘The Oracle Times on December 17th, it was reported (loosely) that Ripple XRP payments might start being accepted by Amazon in 2018. Since then, this article has gone viral, despite the fact that neither Amazon nor Ripple have ever hinted at such a partnership.
Of course, Amazon might start accepting Ripple XRP payments in 2018. The only problem is that uncorrodable cryptocurrency news articles are increasingly being used to intentionally pump dump digital assets.
The IOTA & McAfee Vs Verge Debacle
In November and December of 2017, news of an Internet of Things cryptocurrency (IOTA) partnership with Microsoft, saw prices double overnight. Later, however, it transpired that no such partnership existed. Meanwhile, none other than cryptocurrency oracle John McAfee had to take to Twitter in December, in order to refute an Oracle Times news piece suggesting that he saw digital currency Verge, making headway toward $15 in 2018.
Might Ripple’s Boom be a Result of Nothing but Fake News?
Given that no one knows what is driving the XRP price upwards so fast, it is safe to say that Ripple will (or at least should) pull-back at some point soon. Once the price does and stabilizes like the value of Bitcoin does after a bull run, investors will be able to gain a better understanding of where XRP is really heading.
Sadly, the big problem with Ripple XRP in the meantime is that the price simply doesn’t seem to be driven by anything but misguided speculation. This being the case, anyone who has bet early on Ripple and made a profit, should consider moving profits to less volatile altcoins like Dash Coin. What no one can really predict, of course, is when Ripple XRP might pull-back or how significantly.
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