The Ripple XRP Cryptocurrency Might Be a Big Winner

Updated on January 11, 2018
Rock_nj profile image

I find cryptocurrencies to be fascinating. I have been following Bitcoin's development closely since 2011, as I saw the big potential of it.

The Ripple XRP cryptocurrency appears to have distinct advantages over other cryptocurrencies, including the most widely known and leading cryptocurrency Bitcoin. The world of cryptocurrencies is essentially a wild and fast developing new market with over one thousand different coins that are vying for market-share and trying to become relevant in the future of cryptocurrency commerce. There are many reasons why the design of Ripple’s XRP cryptocurrency may make it a big winner in the long run. In fact, it may actually surpass Bitcoin’s market capitalization, if it develops as planned and gains acceptance around the world.

Ripple's XRP Ties Together Financial Institutions

Ripple has created the XRP cryptocurrency as a way for financial institutions to quickly and inexpensively process transactions around the world.
Ripple has created the XRP cryptocurrency as a way for financial institutions to quickly and inexpensively process transactions around the world. | Source

Why The Ripple XRP Cryptocurrency Might Be a Big Winner

Ripple is the name of the company that developed and controls the XRP cryptocurrency. Unlike many other cryptocurrencies, Ripple designed XRP to be distributed by them to market participants, rather than being created via a coin mining scheme.

Ripple has taken a very different approach with XRP than most cryptocurrencies. They did not create it as a way for people to circumvent the banking system. Instead, XRP has been designed to be integrated with the existing banking system, to serve as a very fast and inexpensive way to process commercial transactions and currency exchanges throughout the world. While this approach has caused Ripple to be sharply criticized by the cryptocurrency faithful, who want to use digital currencies as alternatives to the traditional banking system, it is exactly the reason why XRP might be a big winner in the long run.

The Winning Approach for Ripple XRP

Here is why Ripple may have found the winning approach with XRP, and why it may be the dominant cryptocurrency in the future. The international banking system has been using money wiring transfer system called SWIFT (Society for Worldwide Interbank Financial Telecommunication) for decades. At this point SWIFT is a relic of another era, taking days to process a wire transfer of money that incurs considerable fees.

While there has been a lot of excitement that Bitcoin would take over this role of transferring money across international borders, the reality is that Bitcoin is just too slow and too expensive to be a realistic option for replacing SWIFT. Besides, the animosity shown by the Bitcoin community towards established financial institutions is not the sort of attitude that is going to win over these big financial players over to switch to Bitcoin.

Ripple has taken a totally different approach with XRP. They have designed it to be a cryptocurrency that banks and financial institutions can be comfortable using to process the exchange of currencies and other financial transactions, and do so much faster and less expensively than SWIFT. They have actively pursued partnerships with banks and financial institutions around the world, and have structured XRP in a way that works within their way of doing business. They are essentially mainstreaming the use of cryptocurrencies by the established financial sector.

The implications of this, should they be successful at making XRP the default cryptocurrency for these financial behemoths, are obviously enormous. Hundreds of billions of dollars worth of currency transactions are done each day by banks and financial institutions, Some of these transactions are difficult and expensive using the current SWIFT system, especially when the transaction involves two countries that do not have close financial ties. What XRP offers is a fast, convenient and inexpensive way to process any currency transaction. The sender’s currency is converted into XRP, which is then sent to the receiver, who converts XRP into the local currency. It can all happen in a matter of seconds, rather than days, and at a fraction of the cost of the SWIFT system.

Imagine the prestige that XRP will have once it is the cryptocurrency of choice for the largest financial institutions around the world to process their cross-border transactions. That position will almost certainly cause it to be the dominant cryptocurrency, with a price appreciation to accompany its status.

XRP Has The Lowest Cost Per Transaction Among Major Cryptocurrencies

As shown above, XRP transactions are significantly cheaper than major cryptocurrency competitors.  This gives XRP a big advantage in the race to become the dominant cryptocurrency for financial transactions.
As shown above, XRP transactions are significantly cheaper than major cryptocurrency competitors. This gives XRP a big advantage in the race to become the dominant cryptocurrency for financial transactions. | Source

The Problem That Ripple Is Solving With The XRP Cryptocurrency

The problem that Ripple is solving with the XRP cryptocurrency is providing a solution to banks and financial institutions that are seeking to lower costs and boosts profits, while providing customers better and faster money transfer services. By allowing banks to access a real alternative for money transfers that is both much faster and cheaper than SWIFT, Ripple is providing a real solution to a real world problem, that being high fees and very slow transaction completion times that the current SWIFT system is plagued with.

Other Reasons To Keep An Eye on The Ripple XRP Cryptocurrency

There are several other reasons why Ripple’s XRP cryptocurrency should be closely watched for indications that it is going to be a big winner in the long run. The following are some positive aspects of XRP and the parent company Ripple.

  • XRP can be also be used to process domestic financial transactions or even transactions within a large financial organizations.

  • XRP may be the first cryptocurrency to be widely accepted and utilized by the existing international financial system, which will make it a household name.

  • The company behind XRP, Ripple, appears to have strong management that is making the right moves to make the cryptocurrency successful.

  • Ripple is the most valuable privately held company in Silicon Valley; indicating that venture capital investors believe in and have put money behind the company’s vision.

Ripple XRP Poll

What Does The Future Hold For The XRP Cryptocurrency

See results

Ripple Labs, Inc. Is the Parent Company for the XRP Cryptocurrency

Ripple Labs, Inc.says the XRP Cryptocurrency has big plans for the future.
Ripple Labs, Inc.says the XRP Cryptocurrency has big plans for the future. | Source

Ripple CEO Explains Why XRP WIll Beat Bitcoin

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

    © 2018 John Coviello


      0 of 8192 characters used
      Post Comment
      • Rock_nj profile imageAUTHOR

        John Coviello 

        2 years ago from New Jersey

        I'm glad everyone found this article about the Ripple XRP cryptocurrency to be informative. This is an exciting sector to follow, as the various cryptocurrencies jockey to become leaders.

      • teaches12345 profile image

        Dianna Mendez 

        2 years ago

        Thank you for the information on Ripple. I am watching the news and movement but I agree with Nadine on being kept in debt to the banking industry.

      • Larry Rankin profile image

        Larry Rankin 

        2 years ago from Oklahoma

        Hot topic these days.

        Interesting read.

      • aesta1 profile image

        Mary Norton 

        2 years ago from Ontario, Canada

        I am now interested in following this and getting to know it and understand how it works.

      • Nadine May profile image

        Nadine May 

        2 years ago from Cape Town, Western Cape, South Africa

        Thanks for this article and I must admit I still don't know enough about XRP but I have to admit that any currency that is still linked to our global banking system is for my suspect. The crypto-currencies are still ‘money’ in the traditional sense.

        Yes, It might be a private-sector money, not controlled by governments or central banks, but the crypto-currencies are still ‘money’ in the traditional sense.

        In Cape Town, a group of 12 people in 2003 have created a currency that can only be used locally named Talents. On the one hand they are boring because they don’t have the magical ability to increase in value over time. They are not an investment and won’t make us rich! Why get excited about that?

        For the last 400 years about the only real values in the world are the goods and services backing the numbers.

        Talents are thus the only ‘honest money’. They are directly backed by real value in the form of the goods and services that they reflect.

        You can only have as much as you give.

        In the case of the crypto-currencies, it is difficult to see how they would operate if the national currencies collapsed, for that is the bedrock on which they stand.

        Talents will flourish in our local community when the national currencies collapse, for everyone will realize that there is no need for a medium of exchange in order to keep on exchanging.

        my conclusion:

        The idea that we need a medium of exchange that is kept alive by the banking industry so that they can continue lending us their fraudulent money at interest, and keep us as debt slaves feeding the parasite class to which they belong is a lie.

        Those are I my personal feelings about it, so again my apologies for not knowing enough.

      • Guckenberger profile image

        Alexander James Guckenberger 

        2 years ago from Maryland, United States of America

        I have high hopes for Ripple.

      • mackyi profile image

        I.W. McFarlane 

        2 years ago from Philadelphia

        Interesting hub. Thanks for sharing.


      This website uses cookies

      As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

      For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

      Show Details
      HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
      LoginThis is necessary to sign in to the HubPages Service.
      Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
      AkismetThis is used to detect comment spam. (Privacy Policy)
      HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
      HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
      Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
      CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
      Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
      Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
      Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
      Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
      Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
      Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
      VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
      PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
      Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
      MavenThis supports the Maven widget and search functionality. (Privacy Policy)
      Google AdSenseThis is an ad network. (Privacy Policy)
      Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
      Index ExchangeThis is an ad network. (Privacy Policy)
      SovrnThis is an ad network. (Privacy Policy)
      Facebook AdsThis is an ad network. (Privacy Policy)
      Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
      AppNexusThis is an ad network. (Privacy Policy)
      OpenxThis is an ad network. (Privacy Policy)
      Rubicon ProjectThis is an ad network. (Privacy Policy)
      TripleLiftThis is an ad network. (Privacy Policy)
      Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
      Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
      Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
      Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
      ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
      Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
      ClickscoThis is a data management platform studying reader behavior (Privacy Policy)