While Bitcoin is the major player when it comes to the cryptocurrency scene, there are thousands of crypto options to invest in, with many having a real chance to unseat Bitcoin as their value continues to climb. Because the amount of Bitcoin is capped out at a certain point due to the limitations in the programming, we’re rapidly approaching the maximum amount of Bitcoins in circulation, with over 80% of all possible coins currently mined. Other currencies that don’t have that limitation have near limitless potential for growth. Despite a recent downturn for cryptocurrencies across the board, several factors give the Ripple (XRP) price a good chance of spiking quite high.
While the Ripple (XRP) price and its market cap currently put it third on the list of cryptocurrencies, many experts believe it has a huge amount of potential as a potential threat to Bitcoin’s position at the top rung of the cryptocurrency ladder.
Ripple’s XRP – A Centralized Currency
The majority of cryptocurrencies are built around the idea of being “decentralized,” which essentially means that they aren’t controlled by any entity or government. The Ripple (XRP) price, however, is somewhat dependent on a parent company – Ripple. While being controlled by a single company may not seem like a benefit by default, it’s the willingness of this particular cryptocurrency to play ball with traditional financial institutions that give it an incredible amount of potential when it comes to future growth.
One of the big problems that many traditional governments and banks are finding with the idea of cryptocurrency is the lack of regulation. Bitcoin found itself in trouble over the past few weeks as multiple countries took steps to regulate or penalize the trading and/or mining of Bitcoin within their borders. Documents leaked from China that suggested that the country would soon impose higher taxes on Bitcoin miners – the death knell for mining organizations that called the country home due to the low price of electricity. Israel also expressed some major concerns about the lack of regulation surrounding cryptocurrency, expressing plans to put a halt on any major Bitcoin activity within the country pending review and regulation from their financial regulators.
While the lack of regulation surrounding Bitcoin and other major cryptocurrencies is part of the attraction for a group of largely non-traditional investors, the power and influence of these investment opportunities as a whole is getting too large to ignore. Investopedia reported back in October of last year that the market cap of cryptocurrency exceeded $180 billion, leaving regulatory bodies anxious about the fact that there are no real rules governing these uncharted waters.
The Ripple (XRP) price may continue to rise due to the parent company’s unique influence over the direction of the currency. While decentralized currencies continue to be hit by stifling regulation, the Ripple (XRP) price may skyrocket in comparison due to Ripple’s ability to roll with the punches.
Playing Ball With Banks
Another main reason why the Ripple (XRP) price may continue to rise is the fact that the currency may be used in the future for currency exchanges between banks. With Ripple already partnering with banks scattered around the globe, there’s definitely the potential for more established financial institutions to get on board the Ripple train – and these institutions have a lot of resources at their disposal.
As mentioned above, the main appeal that may keep the Ripple (XRP) price moving forward is the oversight from being somewhat controlled by a company. There’s no doubt that there are huge amounts of money moving through the cryptocurrency scene, but many traditional investors and institutions are hesitant to commit any significant amount of resources to an investment with a value that is currently so volatile.
In its current state, the Ripple (XRP) price is anything but immune to fluctuations. While it grew a huge amount over 2017, it proceeded to drop by 50% in the beginning of January. While banks often invest in an effort to grow their profits, taking huge risks on cryptocurrency is probably not in the cards at this current point in time.
However, the Ripple (XRP) price may continue to rise as the company makes progress in their efforts to establish themselves as a unique investment among a sea of riskier options. Ripple is currently in third place when it comes to market cap, but if a few major banks were to get behind the currency as a legitimate investment opportunity, it may succeed where other have failed. As a hybrid of sorts – straddling the line between novel cryptocurrency and traditional investment – The Ripple (XRP) price may be uniquely positioned to take the market by storm moving forward into 2018 and beyond.
The Future of Cryptocurrency
It’s impossible at this point to predict what the future has in hold for the world of cryptocurrency. If there’s one thing that’s certain, these new investment opportunities are pushing the financial world into uncharted waters. Recent pushback from several governments is an indication that the traditional investing world isn’t quite ready to fully embrace this novel form of currency, but the Ripple (XRP) price has a lot of potential if the company continues to cooperate with traditional banking institutions rather than trying to turn the financial world on its head.
In a world where the majority of investments are tied to something real, such as the performance of a major corporation, the idea of thousands of currencies with no regulator other than supply and demand definitely poses its problems. It’s been easy to see how volatile currencies like Bitcoin have been over the past two months, facing a major crash after reaching record highs near the end of December and costing many new investors a lot of money. As a category of investments that seems quite beholden to rumors and speculation, it’s a major departure from the moderate stability of regular investments. It’s becoming increasingly clear that Bitcoin’s current trajectory may have capped out. For the Ripple (XRP) price, however, the sky’s the limit.