Question from our reader:
Hi, my friend told me to invest in Ripple, because this crypto is expected to rise soon. What do you think about it?
Our answer:
While judging whether or not a said cryptocurrency will experience a price increase it’s important to consider not only the general mood around it, but also the character of this crypto.
Ripple has been developing very dynamically as of late. They signed contracts with many banking institutions, like the ZEA National Bank. They also work on extending the functions available to the clients, to make the system more user-friendly and interesting for investors. Lately they added the option to exchange XRP for precious metals.
The experts have been judging Ripple’s potential for a price increase positively, basing their opinions on the pros of this cryptocurrency – low fees, many transactions per second and high transfer speed.
Of course, Ripple also has cons – the monopoly of banking sector, which halts the development of technology, as well as the uncertainty of governments towards cryptography. That last factor concerns not only Ripple, but all virtual coins. In the face of sudden changes, the investors tend to be careful and try to not invest too much money at once until they reach a stable point.
It’s nearly impossible to give a certain diagnosis. It is caused by many factors. First of all, Ripple team doesn’t reveal all their plans for the future. And second of all, it is really hard to foresee the mood on the market – especially during Bitcoins market boom. Many things point to another success, but there are no guarantees – there are too many unknowns.
