Ripple (XRP) Price 2020
The current price of Ripple (XRP) fluctuates around $0,191963; the total market capitalization is $8,313,502,329, which makes XRP the third most popular digital currency as of December 2019. The circulating supply is 43,319,477,613 XRP.
The all-time high of Ripple, $3,84, was reached in January 2018. The estimated ROI (return on investment) of XRP is 3,168,10%, which means that $100 worth of XRP bought at the time of the Ripple launch would yield $3168 today.
The popularity and price of Ripple depend primarily on the number of bank partners that use the Ripple payment system. When in 2016, the company signed contracts with more than 20 banks, the price skyrocketed by 200%. It is essential to understand that the low cost of Ripple is determined by the vast amount of XRP already issued; the price will naturally increase as more and more coins are used.
Ripple is an unusual cryptocurrency: as it is not mined, all 100 billion XRP coins have already been created, but only 43% of those have been issued into the market. This is what dictates the low price of XRP ($0.21 as of December 2019). As the number of coins decreases, the price will naturally grow.
The history of XRP price is consistent with the overall market trends: the major peaks occurred in May 2017 ($0.34), January 2018 ($3.84), and September 2018 ($0.56). The price analysis shows the emergence of a small peak every time Ripple settles a partnership with a large bank or payment system.
As the price of XRP depends largely on partnerships with banks, it is hard to predict its dynamics with accuracy. Either way, the consensus among cryptocurrency experts tends towards a steady, gradual increase in the price of Ripple. In particular, WalletInvestor predicts XRP to reach $0.46 in 2020 and even $2.32 by 2025. Read more about the predictions of XRP’s price.
What is Ripple (XRP)
Ripple (XRP) is the native cryptocurrency of the Ripple payment network. The purpose of Ripple is to connect banks and other major institutions for the transfer of money and other assets. The transactions are recorded in the XRP decentralized ledger. Ripple claims to facilitate cross-border money transfer by reducing the time (4 seconds as opposed to several days in conventional banking) as well as transaction fees. XRP is used to pay for transactions in the network. Ripple is capable of handling 1500 transactions per second (as opposed to Bitcoin’s 7).
Some of the prominent advantages of Ripple include:
- High transaction speed (compared to that of Bitcoin);
- The possibility of cross-currency and cross-value exchanges with a minimum amount of transaction fees (for instance, exchange freely between cryptocurrencies, stocks, and even precious metals);
- Enhanced security and a good level of protection against hacker attacks and spam;
- Impossibility of inflation – since all XRP has already been issued and no new coins can be created. The excess of XRP is balanced out by burning a fixed amount every time a transaction fee is paid;
- Reversibility of transactions – it is possible to cancel or edit a transaction if a mistake was made.
An exciting feature of Ripple is its dual nature: it is a technology that combines elements of a digital payment network and a cryptocurrency. Ripple does not utilize blockchain technology in the traditional sense: Ripple is not mined and does not use the Proof-of-Work or Proof-of-Stake consensus mechanisms. Instead, it makes use of the gateways operated by the company’s servers around the world in order to confirm transactions and validate account balances in the system. This helps to prevent double-spending and improve the integrity of the system.
Ripple was founded by Chris Larsen and Jed McCaleb in 2013. However, a predecessor of Ripple called RipplePay was created as early as in 2004 – way before Bitcoin’s launch. As of now, Ripple (XRP) is the third most popular digital currency in the world, with a market capitalization of more than $12.4 billion. XRP itself is implemented in the C++ programming language, utilizes the ECDSA hash algorithm, and is not based on blockchain technology.
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