Investors are continuously eyeing out for the next penny crypto currency which could make them fortune with high rise just like Bitcoin did on early 2017. Ripple(XRP) is the one of the popular digital currency on payment transactions alongside Bitcoin and one of the most stable coins in the current bearish market. Many experts believe that XRP is the next Bitcoin and have high hopes of making profits in the coming years.
Although Bitcoin is the original cryptocurrency which created a global payment system in a decentralized system allowing people across to send and receive digital money on a peer-to-peer basis with no middle person or intermediary, but, the “mining” to create new bitcoins and verification of transfer process is taking more than before resulting the system to slow down. Similarly, the processing fees also may charge to $40 per transaction which is simply unreliable. Also, high amount of electricity is being used with thousands of mining going every moment and with hour long transactions.
Ripple was also created for a payment system with expectation of using it on banks for transferring funds. Ripple is the name of the blockchain technology that allows people to send and receive funds and XRP is the name of the digital currency. The two big issues with banks today is the slow transaction times and expensive cross-border payments. XRP is a mining-free cryptocurrency with transaction time of mere seconds and is very economical. It has a maximum supply of 100 billion XRP coins with circulating supply of 60 billion.
Ripple is very different to truly decentralized cryptocurrencies like Bitcoin as it has been designed to work with banks and not replace them. As of now, more than 200 banks, startups and payment organizations in US, Brazil, Europe, Middle East and Far East are using Ripple network to make cross-border payments.
XRP is indeed has a very high potential but one needs to have a complete understanding on it’s mechanics and capacity for a good investment.