Is XRP Still Good Bet?

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Should you invest in XRP or not? Is Rip­ple’s token a viable choice for port­fo­lio diver­si­fi­ca­tion? Will it sky­rock­et as the pay­ment com­pa­ny scores a vic­to­ry over the SEC?

While Rip­ple’s law­suit with the Secu­ri­ties and Exchange Com­mis­sion is still ongo­ing, there are high expec­ta­tions that the pay­ment com­pa­ny will emerge vic­to­ri­ous in this process. Nat­u­ral­ly, this may be a fac­tor that could dri­ve the XRP mar­ket forward.

Rip­ple’s asset is con­sid­ered a secu­ri­ty token by the SEC, but the gov­ern­ment agency has not been able to prove its point since it start­ed the process in late 2020. There­fore, the indus­try is bet­ting on the pay­ment protocol’s victory.

Mar­ket play­ers believe that a vic­to­ry for Rip­ple would mean a vic­to­ry for the entire cryp­to envi­ron­ment. But is that the only fac­tor that could let XRP become bullish?

What makes XRP valuable?

The alt­coin was devel­oped to allow trans­fers of val­ues in an inter­na­tion­al and acces­si­ble way. A finan­cial­ly sanc­tioned coun­try could use Rip­ple’s sys­tem to trans­fer mon­ey abroad by exchang­ing its local cur­ren­cy and trans­form­ing it into XRP. It would send the tokens to anoth­er coun­try, where the amount received could be trans­formed into the local currency.

The sys­tem caught the atten­tion of banks, such as San­tander, who sought Ripple’s help for cross-bor­der pay­ments. The fees for val­ue trans­fers are much lower.

In the world of bank­ing, XRP is, in the­o­ry, a replace­ment for SWIFT. As such, it is an exchange cur­ren­cy that allows banks to trans­act with each other.

Fur­ther­more, Rip­ple has man­aged to prove that it not only solves the prob­lems of large insti­tu­tions, but also helps small businesses.

Anoth­er area of devel­op­ment for Rip­ple is cen­tral bank dig­i­tal cur­ren­cies (CBD­Cs). Just to give an exam­ple, in 2021, it start­ed test­ing a ver­sion of the pub­lic XRP Ledger for issu­ing a CBDC.

But does this mean that XRP is worthwhile investment?

It depends a lot on your investor pro­file in the cryp­to mar­ket. As not­ed above, one of the strong goals of the com­pa­ny behind XRP is to help the bank­ing sys­tem. How­ev­er, the idea of a decen­tral­ized econ­o­my is to end that industry.

It was pre­cise­ly so that peo­ple would not need to depend on banks that Satoshi Nakamo­to cre­at­ed Bit­coin (BTC).

It is also worth not­ing that many of Rip­ple’s part­ner­ships with banks were not tak­en for­ward, espe­cial­ly after the legal fight with the SEC began. And even if they had come to fruition, most were focused not on using XRP, but on Rip­ple’s solutions.

The idea of offer­ing tokens for inter­na­tion­al trans­fers could prove to be flawed, since sta­ble­coins bring more sta­bil­i­ty to trans­ac­tions as they man­age to main­tain their prices bet­ter than XRP does.

But if the focus is on a more volatile asset, Rip­ple’s alt­coin is not a stand­out in the cat­e­go­ry, as any cryp­tocur­ren­cy can be sent any­where in the world. Also, why choose a cen­tral­ized cryp­tocur­ren­cy when Bit­coin already per­forms that role quite well?

Fans of decen­tral­iza­tion will pre­fer not to invest in XRP or any oth­er cryp­to in the same cat­e­go­ry, but the same can­not be said for large com­pa­nies. Undoubt­ed­ly, Rip­ple’s fun­da­men­tals com­bined with a vic­to­ry over the SEC may bring insti­tu­tion­al investors to the com­pa­ny, and this would impact the price of XRP.

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