Last week it became known that the Ripple team had concluded two new partnership agreements. The first was with the telecom company IDT, and the second was with the international payment service MercuryFX. They will test the functionality of xRapid Ripple, based on the Ripple token (XRP), for the purpose of increasing speed and lowering commissions when making payments.
As of now, this cryptocurrency has already generated quite a bit of positive signs. For example, in early January the international payment system Moneygram announced plans to add the XRP token to increase speed and lower commissions.
Factors Which Can Drive On Ripple’s Growth
1- Operations :
Ripple is working with some of the biggest financial institutions around the world. Ripple aims to power the whole financial sector by making instant transactions possible at a fraction of the current costs. It provides a frictionless experience for global fund transfer using the blockchain technology. In future, it is expected to act as a liquidity solution for the cross-border transactions. Banks and Payment Providers can use XRP to settle multi-currency transactions to minimize the overheads.
Right now, SWIFT facilitates most of the international payment transfers. Whenever we make any cross-border transaction, we need to provide the SWIFT code of the branch of the bank. SWIFT has a monopoly over cross-border settlements. It has more than 11,000 financial institutions and 200 countries on its network. Ripple is associating with big financial institutions and working with many banks to incorporate its blockchain technology. It’s hard to say how soon or whether Ripple will be able to take SWIFT down or not. However, it can indeed break the monopoly of SWIFT over the international fund transfer.
2- Powerful Technology :
Ripple can process 1500 transactions per second, which is huge as compared to Bitcoin. Bitcoins can handle up to 7 transactions per second. Ripple’s technology is powerful enough to replace international payment systems such as VISA while reducing the cost and allow instant transfers.
3- Trust :
A large number of banks from around the world are actively working with Ripple to implement its technology over their payment infrastructure. It makes Ripple trustworthy, and investors find XRP to be a comparatively safer bet as compared to other cryptocurrencies.
4- Cryptocurrencies As Safe Haven :
Cryptocurrencies performance during 2017 will be a determining factor for their demand in 2018. 2017 saw the price of XRP surging rapidly during the first half. Other cryptocurrencies won’t find it easy to copy the market development of Ripple. Investors interested in the digital currencies as a haven for the uncertain times will find Ripple as a promising candidate.
5- Familiarity :
Bitcoin and Ethereum are the most traded cryptocurrencies. A large percentage of cryptocurrency traders and investors are still not familiar with Ripple despite its promising technology. Once, a few institutional investors join the network and Ripple permeates the mainstream investor’s community like Bitcoin and Ethereum, an influx of trend followers can make the XRP prices shoot through the roof.
What is There to Be Afraid Of?
There are challenges, however.
First, rapid growth is being held back by ongoing litigation with R3.
Second, there is stiff blockchain-based competition, which does not let up for even a second.
Third, the development of regulations for these kinds of cryptocurrencies is still in progress. One important fact from Ripple’s story is important to remember when talking about this. In May, the Financial Crimes Enforcement Network fined Ripple $700,000 for violating the bank secrecy laws relating to money laundering prevention.
Predictions For 2018
– Looking at the latest developments and increasing interest towards the XRP, by the end of 2018, the Ripple price is expected to cross the $7 barrier at least.
– Trading Volume of XRP is nowhere close to the most popular cryptocurrencies, BTC and ETH. Trading volume is expected to grow in 2018, and a rise in speculative activity on the Ripple cryptocurrency can even raise its prices to $7-$10 mark as well.
– Though the overall price of XRP is expected to witness an upsurge, not all months of 2018 will be the same. A lot of cryptocurrency enthusiasts don’t like the idea of banks or any financial institution or a company regulating the cryptocurrency. In the long run and as long as banks exist, XRP is likely to prove as a solid investment, but its prices can see a downward trend in some of the months.
Featured Image: chillXseven inspired by fantasylabs.com
What are your thoughts about Ripple’s future? Is it bright? Bleak? Tell us what you think in the comments below.