Home Ripple Ripple Continues to Be No Different From Other Cryptocurrencies

Ripple Continues to Be No Different From Other Cryptocurrencies

18 min read
0
270


<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Of all the major “alt-coins,” the alternatives to Bitcoin that have sprung up this decade, none has been more focused on becoming “real money” than Ripple (CCC:XRP-USD).” data-reactid=”11″>Of all the major “alt-coins,” the alternatives to Bitcoin that have sprung up this decade, none has been more focused on becoming “real money” than Ripple (CCC:XRP-USD).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ripple isn’t “mined,” but verified. It’s designed to bypass the fees found in converting currencies. For example, where the exchange rate may be 111 Yen to $1, travelers would get just 99.” data-reactid=”12″>Ripple isn’t “mined,” but verified. It’s designed to bypass the fees found in converting currencies. For example, where the exchange rate may be 111 Yen to $1, travelers would get just 99.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ripple was born with big backers, like Alphabet’s (NASDAQ:GOOGL) Google Labs. It has worked extensively with banks around the world, and its business plan remains to integrate its technology into existing payment systems.” data-reactid=”13″>Ripple was born with big backers, like Alphabet’s (NASDAQ:GOOGL) Google Labs. It has worked extensively with banks around the world, and its business plan remains to integrate its technology into existing payment systems.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”14″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips

So, if any alt-coin is going to stabilize, you figure it will be Ripple. If any alt-coin is going to become a medium of exchange, rather than a speculative asset, it will be Ripple.

But that’s not how it’s working out.

Why Ripple Has Fallen

As Bitcoin’s value has fallen through 2018, from a high of $20,000 to its August 8 price of about $6,500, Ripple has come down right along with it. A Ripple coin was worth $3.30 in January. It’s now worth 36 cents, and its value relative to Bitcoin has been falling as well.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The reason, as I explained back in February, is that cryptocurrency is a market dominated by Asian speculators. Americans may act as cheerleaders and technology innovators, but the people buying and selling cryptocurrency are, for the most part, Asian investors.” data-reactid=”21″>The reason, as I explained back in February, is that cryptocurrency is a market dominated by Asian speculators. Americans may act as cheerleaders and technology innovators, but the people buying and selling cryptocurrency are, for the most part, Asian investors.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Source: Block0 via Medium.com ” data-reactid=”30″>Source: Block0 via Medium.com

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A recent analysis by the cryptocurrency angel fund Block0 shows that this is increasingly true. Asian currency markets represented 59% of trading in the fourth quarter of 2017, and 77% in the second quarter of 2018. The greatest interest by country comes from South Korea.” data-reactid=”31″>A recent analysis by the cryptocurrency angel fund Block0 shows that this is increasingly true. Asian currency markets represented 59% of trading in the fourth quarter of 2017, and 77% in the second quarter of 2018. The greatest interest by country comes from South Korea.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="An asset that is dependent on speculation, whose value is subject to change without notice, is not a good medium of exchange. Why should Thai workers in Japan send their money home as Ripple, rather than Bhat, when the value of that Ripple might fall 10% in one day, as it did August 7?” data-reactid=”32″>An asset that is dependent on speculation, whose value is subject to change without notice, is not a good medium of exchange. Why should Thai workers in Japan send their money home as Ripple, rather than Bhat, when the value of that Ripple might fall 10% in one day, as it did August 7?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The latest fall comes alongside an unexplained rise in Tether (CCC:USDT-USD). Tether’s value is supposedly tied to the U.S. dollar but its sponsor, Bitfinex, is in Hong Kong and has never been audited. Tether is often used to arbitrate trades, because of the supposed dollar tie, and Bitfinex has been accused of using it to pump up cryptocurrency prices.” data-reactid=”33″>The latest fall comes alongside an unexplained rise in Tether (CCC:USDT-USD). Tether’s value is supposedly tied to the U.S. dollar but its sponsor, Bitfinex, is in Hong Kong and has never been audited. Tether is often used to arbitrate trades, because of the supposed dollar tie, and Bitfinex has been accused of using it to pump up cryptocurrency prices.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
” data-reactid=”34″>

Seeking Legitimacy

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In their continuing efforts to seek legitimacy, crypto managers are constantly seeking the validation of trusted sources. Case in point, Bill Clinton is scheduled to keynote the next Ripple conference.” data-reactid=”36″>In their continuing efforts to seek legitimacy, crypto managers are constantly seeking the validation of trusted sources. Case in point, Bill Clinton is scheduled to keynote the next Ripple conference.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Most recently, Tether Ltd. had former FBI Director Louis Freeh verify that Tether does indeed have the dollars to back its coins it claimed to hold in June, with about $7 million to spare.  That didn’t prevent the latest hiccup.” data-reactid=”37″>Most recently, Tether Ltd. had former FBI Director Louis Freeh verify that Tether does indeed have the dollars to back its coins it claimed to hold in June, with about $7 million to spare.  That didn’t prevent the latest hiccup.

The Bottom Line on Ripple

Cryptocurrency remains thinly traded, mostly in east Asia, and the value of all so-called “alt-coins,” like Ripple, remain correlated with that of Bitcoin itself.

As this was written, Bitcoin still represented 48.6% of the total market. It is the strongest of all the crypto-coins, by far. The total value of Ripple, $14.4 billion, is a little more than 10% of Bitcoin’s valuation, $114.3 billion.

Until Bitcoin stabilizes, none of the other alt-coins, including Ripple, will be able to find stability, and it is stability that is necessary for Ripple to become a medium of exchange rather than a mere speculative asset.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If Intercontinental Exchange (NYSE:ICE), owners of the New York Stock Exchange, can’t create stability in the Bitcoin market — and the price of Bitcoin has fallen over 10% since they announced their interest in that  — it’s hard to see any alt-coin, including Ripple, finding the stability it seeks.” data-reactid=”44″>If Intercontinental Exchange (NYSE:ICE), owners of the New York Stock Exchange, can’t create stability in the Bitcoin market — and the price of Bitcoin has fallen over 10% since they announced their interest in that  — it’s hard to see any alt-coin, including Ripple, finding the stability it seeks.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Dana Blankenhorn is a financial and technology journalist. He is the author of a mystery novella involving Bitcoin, The Reluctant Detective Saves the World,  available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story, and no cryptocurrency. To follow the value of cryptocurrencies bookmark https://coinmarketcap.com/” data-reactid=”45″>Dana Blankenhorn is a financial and technology journalist. He is the author of a mystery novella involving Bitcoin, The Reluctant Detective Saves the World,  available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story, and no cryptocurrency. To follow the value of cryptocurrencies bookmark https://coinmarketcap.com/

More From InvestorPlace

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" Compare Brokers ” data-reactid=”52″> Compare Brokers

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The post Ripple Continues to Be No Different From Other Cryptocurrencies appeared first on InvestorPlace.” data-reactid=”53″>The post Ripple Continues to Be No Different From Other Cryptocurrencies appeared first on InvestorPlace.

Let’s block ads! (Why?)


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

JPMorgan Posts 34 Blockchain Jobs as It Beefs Up JPM Coin – CoinDesk – CoinDesk

The vast majority of the job openings, posted this month and final, are within the U.S., I…