If you are planning to invest in a digital coin, one of the common options you have is Ripple. However, is ripple a good investment? Backed by a relatively sophisticated protocol known as “XRP,” Ripple is a digital coin that many investors will opt for over other alternative coins in the market. Discover the pros and cons of Ripple and whether the coin can be a great investment or not, below;
Important information before answering the question
Before you put your hard earned money into the coin, the most important question you should ask yourself is: is Ripple a good investment? To be able to answer the question accurately, let’s take a look at a few pros and cons of the coin, starting with the former.
Pros of Investing in Ripple (XRP)
1. A Well-Thought Out Infrastructure—Based on its XRP protocol run by xRapid Product, Ripple offers cheaper as well as faster solutions than other coins. For instance, transactions can be concluded within three minutes, saving transaction costs by up to 70%. In fact, the company is aiming at 1500 transactions/second in the near future, which will be way higher than what many other coins are able to offer currently and in the future.
Secondly, the coin’s well-structured infrastructure is built with scalability in mind. That makes Ripple a highly scalable coin that can adapt according to the market trends.
2. Great Partnerships and Better Investors—For a brand to win the trust and draw the interest of major market players, it must first be able to demonstrate a great potential. That’s exactly what Ripple did, drawing the attention of Japan’s SBI group. The bank recently announced that they would implement the coin into their system. Likewise, many central banks are beginning to incorporate Ripple into their payment systems, including the Bank of England, the Bank of Thailand, and Central Bank of Mexico;https://coil.com/p/stuart/Ripple-s-Central-Bank-s/0UQfvB2-N.
3. It’s Easier to Get Started with Ripple—Ripple sets itself apart from the rest by offering a cheaper investment option. For instance, with as little as $0.40,you can buy the coin. Therefore, you don’t need to save money and plan for a long duration before you can be able to get started. As such, you can start small spontaneously and increase your investment as you learn. So, is Ripple a good investment?
Cons of Investing in Ripple
1. Ripple Lacks Real World Utilization—Despite being backed by traditional financial institutions like banks, Ripple just like other crypto currencies, hasn’t fully earned the trust of governments and the general public. As such, it’s not applicable in the real world. In other words, you will not be able to pay your regular bills using Ripples.
2. Slow Growth due to False Misconduct Rumors—Another minor setback of investing in Ripples is the fact that the currency is growing at a snail’s pace. As such, many cryptocurrency systems haven’t accepted it yet as they have other cryptos. That scares off many investors who fear buying the currency only to not be able to sell it later.
The slow growth is associated to a controversy about the currency’s decentralized system and some false rumors about Ripple. When it was rolled out, the coin faced serious accusations that was being controlled by Ripple Lab (the company behind Ripple) and investors to manipulate the market. Even after proving otherwise to the courts and being found not guilty, the competitors have continued to spread the false rumors, keeping investors away from it. So, is Ripple a good investment?
The answer to the question; “Is Ripple a good investment” is “YES”. Weighing the pros against the cons of the coin, it’s safe to say that Ripple is a growing coin with a huge potential. That’s why many financial institutions around the world, including central banks, are entering into agreements with the company.