🔥 Invest in Ripple 2021: buy Ripple or not?
If you want to invest your money profitably, you will probably get on the subject sooner or later crypto currencies bump. Because it is above all the success stories of Bitcoin and Co., who ensure that interest continues to rise - but with cryptocurrencies it's not just about making profits, but also about corrections such as setbacks. Because hard crashes can be observed again and again. The market is unregulated - and it is unpredictable.
If you want to invest, it may be advisable to take a look behind the scenes. Because behind everyone digital currency there is a network or a platform, and in the end they are definitely involved in the price development. Because if it is a promising project that has already reached a number of stages, it may well be very promising.
All those who deal with cryptocurrencies will be on Ripple bump. Recommended or not?
Ripple is a payment system based on an open source protocol. The idea came from Ryan Fugger, a web developer, and Chris Larsen, a company - the programming was done by Jed McCaleb. In the end, you want to be a distributed peer-to-peer payment method - including the foreign exchange market. The Ripple network supports every currency - regardless of whether it is yen, US dollars, euros or Bitcoin.
The US Securities and Exchange Commission filed a lawsuit in December 2020. The company Rippel, which is connected to the digital currency XRP, is accused of having raised more than 1,3 billion US dollars through an unregistered securities offer. As of today (May 31, 2021) there has been no decision in this regard.
How it works
The majority of modern monetary systems are based on trust. The cash as well as the government bonds are about government bonds. Especially when working with digital accounts, you have to trust the bank that the 1.000 euros in the account can actually be made available or paid out by the financial institution. At Ripple may it be an attempt to apply this mechanism to a digital currency transfers by then recording liabilities between institutions and individuals in a register that is publicly available worldwide. The register is saved in the peer-to-peer network by the computers on which the so-called Ripple software is located.
Promissory notes, called IOUs, are then stored in the register, so that one gets the information about which person owes how much money in one currency to another person and vice versa. Thus, there is an unbalanced IOU balance of private liabilities between individuals.
A special case is represented by the Ripple Gateways. Established means of payment are accepted here, and IOUs are then issued, which can then be redeemed at any time. The gateway is reminiscent of a bank. However, the liabilities of a gateway are recorded in a register and not recorded in documents to which only the bank has access. This means that the redemption of gateway IOUs means that there has been a payment outside of the Ripple network - for example through a transfer or cash. However, if the payment takes place within Ripple's network, then there is an adjustment of the liabilities between the individuals.
It should be noted that liabilities can be saved, but there is no enforcement option. If there is no direct trust relationship between the receiver and the sender, the network will try to find out a path from users in order to be able to establish a trust ladder. The payments then seep through the social graph - this is referred to as “to ripple”.
The Ripple system also offers a distributed virtual currency exchange, where IOUs can then be exchanged for IOUs from other currencies or from another gateway.
The crypto annoyance
From the side of the cryptocurrency, which would like to called Ripple, but correctly called XRP, two network functions are fulfilled: XRP prevents network spam and also serves as a bridge currency so that other cryptocurrencies can be traded. In order to prevent so-called network spam, the following destruction of a minimum amount of 0,00001 XRP takes place with each transaction.
The number of available XRP is therefore less. Furthermore, XRP also functions as a source of funding for Ripple Labs. Ripple emphasizes again and again that even if the company no longer exists, XRP would continue to exist as an independent open source project. To make this clear, our own XRP logo was even designed in June 2018.
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# Account opening
If you are of the opinion that you have found the right provider with eToro, then it is a matter of opening an account.
eToro convincing here too, as the registration is completed within a few minutes. All you have to do is fill out the self-explanatory form - eToro requires a few personal details here: first and last name, an email address, as well as a user name and password. With the password you should make sure to choose a combination of upper and lower case letters, digits and special characters.
eToro provides various deposit methods. So there is the option of opening the account by credit card, bank transfer, PayPal or can charge with various eWallets. Depending on the selected deposit method, the money is then available either immediately or after two to four working days in the eToro account. It's particularly quick with a credit card or PayPal, you need more patience with bank transfers.
You can buy XRP or speculate on the price. Whoever wants to invest indicates how many coins should be bought. eToro then shows the price to be invested. You can also specify the price you want to invest, and eToro already shows how many coins you get for it. After confirming the transaction, the Coins transferred to the internal wallet - but you can also use an external wallet.
If you click on X2, then speculations are made about the price. In this case, you do not buy coins, but only speculate on the further price development of the cryptocurrency.
The lawsuit - what's next?
It cannot be ruled out that Ripple, the company behind XRP, will one day go public. However, the outcome of the legal dispute between the US Securities and Exchange Commission, the SEC and the company Ripple remains to be seen first.
The lawsuit filed in late 2020, above all against the management team around Executive Chairman Chris Larsen and CEO Brad Garlinghouse, is concerned with the allegation by the US regulatory authority that the company had more than 1,3 billion US dollars from an unregistered and ongoing offer of digital Marketed securities - this should be the offer with XRP that has existed since 2013.
The price development
The market capitalization is (as of May 31, 2021) 41.333.738.528 US dollars. This puts you in 6th place in the ranking of the top cryptocurrencies according to market capitalization. The price? 0,89 US dollars. While this may be a tad higher than before the SEC filed the lawsuit, the price was $ 0,69 in November - and was approaching $ 0,22 when the lawsuit was reported.
Cryptocurrency was able to recover in spring 2021 and even climbed to 15 US dollars on April 1,84. However, it is still a long way from the all-time high of 3,40 US dollars, which was set on January 7, 2018. At the moment it is 73 percent below the record.
If Ripple loses the process, this could have fatal consequences for the further price development of the cryptocurrency. However, one can expect a true bull run if Ripple prevails in court.
It is not yet possible to say what the chances are that Ripple will win or lose.
The risk is currently extremely high
That's why we're at Bitcoin-News.one find that an investment can hardly be recommended at this point in time. Even if the price is low and the forecasts, if you ignore the SEC lawsuit, are promising, it is still extremely risky to invest in Ripple at this point in time.
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