Cryptocurrency Blog, Ripple pt 2

There is a lot of information and speculation floating around out there about Ripple. I know I did a post a couple days ago about Ripple but I find there is too much disinformation and a surprising amount of positive press surrounding it. Many consider it to be a cryptocurrency, but is it really? A cryptocurrency is defined as “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.” By definition, Ripple could be considered a cryptocurrency yet it is not on the same level or remotely similar to other cryptos like Bitcoin, Ethereum or Litecoin.

Ripple acts as a digital currency, remember that Ripple is owned by the company Ripple and is a centralized currency. This means that there is a single entity controlling the currency and can be influenced by said company. Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are decentralized meaning the power is taken away from the few and distributed to the many. I have seen several articles talking about how Ripple might be a valid competitor and surpass Bitcoin yet they are not a competitor of Bitcoin and other currencies, they act as more of a bridge and assist these currencies as it offers a completely different service than each of the other tokens.

The rapid growth of the Ripple XRP price and massive gains lately has driven this market and I believe will continue to get more people to support it due to its cheaper price. More people would be willing to spend $100 on Ripple where they can purchase 40 XRP instead of Bitcoin where they would only get .01 token of Bitcoin. The continued positive news and support of Ripple by mainstream media is a warning to me as I was already hesitant before due to the centralized nature of the token, but now due to all the positive media I am worried it could be a plug by the banks to try and gain support in the crypto world. This might seem like a stretch but the idea behind cryptocurrencies once again is the decentralized part of the currency. Since Ripple is not decentralized I do not support it and will not invest in it. I am not saying it will not rise in price and it will probably be a great investment in the short run, however I do not believe it is the best option out there and will invest in other currencies.