Ripple Skyrockets | The Rippening Is Here
Ripple (XRP) has skyrocketed not only over the past 2 weeks, but also the past 24 hours, surging past the $2 mark (and getting close to challenging $3 at one point). The Rippening / Rippling occurred if you look at total supply, but given the fact this supply is mostly locked in escrow, it behaves more like inflation as it is released into the economy slowly.
Much of this surge in Ripple has come from recent news where Ripple announced three large credit card companies from Japan are partnering with them for a pilot program. In addition, two weeks ago they announced a pilot program with a number of Korean & Japanese banks. Despite these partnerships being exploratory, the market prices them in as full-fledged collaborations due to hype. This type of mentality is not unique to Ripple, but it is affecting Ripple drastically right now so it is worth noting.
I see Ripple as overextended now, although I wouldn't be surprised if irrational exuberance carries it two fold from here given how absurd the rise in Verge was recently (illustrating how strong pumps can be). We also saw this with Iota before it eventually cooled off. Everyone buys in thinking that other people know something they don't know.
This is unfortunate because Ripple has a real and interesting use case with an excellent team. It doesn't need hype to do well, yet this is the nature of the field due to the overinflation of Bitcoin. Furthermore, a lot of people associate the value of the Ripple token with the value of the network. While the Ripple token is the most convenient and trustless currency to use within the Ripple network, it is not representative of the network value and should not be priced as such.
If I had the option, I'd much prefer investing in Ripple the company than Ripple the cryptocurrency. Why? Because I see higher value in the network the company is building than the token itself. Given the company is unfortunately private, this is not an option. I will personally stay away from the Ripple token at these levels.
What are your thoughts? Thank you for watching / reading.
While it's clear that Ripple the token is overvalued at the moment, what sets it apart from Verge to me (and to many others I would assume) is that, like you said, they're a very strong team, not only from the cryptography/computer science/software development standpoint, but also the marketing standpoint, as well as the management standpoint.
When I first invested in Ripple I thought it would be a "safe" investment, as safe as investments could get in the crypto space. Why? I checked out their code, I researched the company, the people behind it. Watched interviews and talks that they gave. And I admit, not only was I impressed by their work, which is phenomenal by the way, I was also convinced and immediately bought 1000 XRP when it had hit 60 cents.
Although your comment about inflation always looming above XRP and applying that downward pressure, I ultimately think that's good for XRP. For the pumpers and dumpers it isn't because it makes it much more difficult for them to do so - but as a currency, we need Ripple to be as stable as possible. This kind of inflationary pressure detracts "investors" who are purely in it for the pump and dump and quick buck from touching XRP, making it actually usable as a currency.
Compare this to Verge, which has nothing more than a codebase and an idea. It saw a 4000% pump over a couple of months. Something similar happened to EmberCoin where it pumped 2000% in one day. Just mindless, meaningless pumps that happen everyday with a new crypto.
As for investing in Ripple the company, I think that's a brilliant idea, and I'm hoping they have ideas of an IPO as soon as they get more deals in with banks and try to work through this tangle of a problem. You're definitely right, replacing SWIFT isn't going to happen in one year. Probably not even in five years. I would say 10 years is also too optimistic.
Anyways, great points and as always great video!
Yes, increasing supply is useful for currencies based on most economic principles (not all). Pumps in smaller cryptocurrencies can occur due to one source, but mega caps like RIpple only pump when FOMO sets in which I believe we are seeing now. I wish they would file for an IPO - I would love to read the S1 as it would provide a lot of insight into what it takes to build a cryptocurrency the scale that Ripple is. Thanks for the valuable comment!
Ripple is such a good project, but I still can't invest in it because of principles. I am not in cryptos to support banks, don't care if I miss out on huge gains.
Always an interesting debate when it comes to investing - should ethics play a role? I know a number of people who won't invest in big pharma because of viewing drug pricing as criminal activity.
Would you be willing to trade it? Or are all bets off?
I avoided Ripple for the same reason. I like the idea of decentralizing, not supporting the banks in another way. I thought the whole point of crypto was to prevent another stock market crash from people gambling with our money.
Sure investing in Ripple would be better than the XRP token but nevertheless investing in XRP is wise if you believe in Ripple, the two are correlated. If you want to argue they are not perfectly positively correlated I would agree, but if I hope you concede that XRP token can be used by the Ripple-net users and it would quicken settlement times and lower fees.
Therefore growing adoption of the XRP by the Ripple net users is in my view likely. And on that strength I think XRP was grossly undervalued before the recent pump.
Things are getting crazy and I sold some of my XRP because I foresee a pull back in the near future, but I definitely see XRP as a use case coin, which aids settlement for a growing number of very large companies who are being serviced by the ripple-network.
Can't wait to see your next video on this topic. Love having you on Steemit. Thanks. Blessings.
Thanks for the comment infidel. They are definitely correlated - I would just much prefer if I could buy the company instead since the hype isn't as strong in equity markets (even if they are expensive right now) relative to cryptocurrencies.
P.S. @cryptovestor
thanks for being a calm voice of reason and thoughtful analysis in this crypto space, where most content creators are just "Moon!" this, and "LAMBO!" that. Its a breathe of fresh air to hear someone like you, thoughtfully explore the pros and cons of a project, like Bitcoin when most everyone else will not dare say anything, bearish, for fear they will be roasted in the comments. It seems fear of approval really directs some channels, but your content is always clear, concise, thoughtful, and balanced.
Im not saying I always agree, but I do always appreciate your view. And I always hear you out.
Ripple is definitely a coin with huge potential, however, it's unfortunate (or fortunate depending how you look at it) to have pumps caused by irrational exuberance like this to offset the natural volatility swings of a market.
Ripple still has transaction fees and is maxed at 1500 transactions per second on the network. Raiblocks can handle 7000+ transactions per second and have 0 transaction fees, while still remaining decentralized. I'm not trying to shill Raiblocks, but I'm just trying to say there are better alternatives to the XRP network. I honestly do not trust a centralized crypto that was founded by the Mt Gox founder, Jed McCaleb. Less than 40% of the supply of XRP is released. But if you invested in XRP, congratulations because you made probably one of the best investments over the past year.
Thanks for your thoughts. The transaction fees are negligible and only there to protect against spam attacks. I also have faith Ripple can scale easily in the event that they need to. I will say the opposite of you - that's not to shill Ripple, but rather to look beyond what is now into what could be. Furthermore, often tech is not the deciding factor of success and this is not true in only cryptocurrencies. New generations of technology will always outperform the old, but it is often difficult to replace them in terms of adoption. Not to start any fights, but I think the fact that Apple is the largest, non-state owned company in the world is a perfect example of why tech is not as important as everyone thinks it is.
P.S: I don't know much about Raiblocks yet, so am just taking what you say at face-value.
I thought McCaleb left for Stellar Lumens and didn't he also sell of Mt Gox to Karpelès and he was the one that killed it?
I thought Stellar Lumens was suppose to be a better ripple and any chance you will be looking into that or maybe a video that compares the two?
Hey I've recently moved to steemit because you promoted your page on YouTube. Thanks for doing that I'm quite liking this platform. From what is seems though you can place loads of money in steam, power up then earn interest in steam on that. If you did a video on that as an investment strategy that would be great-as an idea I'm sure you have loads though. Thanks for the vid :D
I plan on covering Steem in detail for a future video. I'm still working on learning the ins and outs of the ecosystem myself so until I work it all out, going to hold off. But I like what I see and it's a cryptocurrency with a real use case - I love those.
I invested last night took profits @10% and got of that train. No need to stress about dumps. Great content! Check my page out if you like art!
Nice, that must take some discipline not to try and ride the wave.
Always good to take profits when an investment becomes uncomfortably high like this one.
Legendary!
Ripple was less than $0.10 when I saw it first time and I didn't buy it...I still won't buy it because I'm just not interested in the company.
THere are better alternatives to Ripple with much faster transaction proccess. Why don't bank use Bitshares for example to implement the same operations? Bitshares, ,per their website, process 60,000 tps vs. ripple 1,500 tps.
In Ripple, only institutions can become a "validator" (processor of transactions in Ripple network). Every server processes every transaction according to the same deterministic, known rules.
However, in Bitshares (BTS) ANYONE can supposedly become a validator ("witness"). The stakeholders (i.e. BTS holders) can elect any number of witnesses to generate blocks. Each account is allowed one vote per share per witness. To me BTS does the same things as Ripple but faster and in a more decentralized and democratic way (I know this is not an issue with some people but I rather not go on the same path as current financial system just with some shiny tech names in it).
https://steemit.com/bitcoin/@ka82/what-s-the-difference-between-ripple-closed-permissioned-blockchain-vs-bitshares-open-permissionless-blockchain
What's your opinion on Bitshares?
Also what I noticed about the current hype, is that Stellar Lumen (which is similar to Ripple and both initiated by Jeb McCaleb) also had the same run at the same time!
Hello Crypto Investor,
I registered on steemit to write this comment and really hope you will reply to it. I like your rational style and even bought the book you recommend (cryptoassets). I'm also a long time investor and think you're the best source to get valid information.
Therefore I'm really interested in you current portfolio. Not to copy it (which would actually be good for you), but to take it into considerations for my own portfolio.
It also helps to interpret your thoughts/videos better.
Would you share you current portfolio with your audience?
Kind regards, Dan
Dan,
Thanks for signing up to Steemit and leaving a comment here. I've thought of publicly sharing my portfolio, but I'm going to hold off for now. It'd likely do more damage than good because I've already seen people blindly follow my recommendations even with tons of warning. In the future, I might have a premium research service in the future where I will provide such information, but now going to put it on hold.
Hello @CI,
I, too, am interested to see a little about your portfolio. Not dollars, but cryptos and percentages of allocation. All for the same reasons that Dan mentioned.
Privacy aside, I understand your concern about blind followers. While I respect your integrity for that feeling, the sad truth is that you can't stop the dumb money from being dumb and you have only a small ethical responsibility for trying.
My opinions tend to be pretty harsh and critical, but I recommend your content to people without hesitation because of your style. You're not trying to sell anything to anyone and just presenting well reasoned information and opinion for consideration.
I have a pretty hard and fast rule against paying for premium investment content, but I may make an exception if you start a premium service or patreon.
Regards,
Rick
Thank you for the video...one of my favourites. I feel like the banks will be more incentivized to make crypto regulated so they can participate. The front page of ripple's website says it all - with basically all the big banks logos on it. I wonder if some of them will jump at buying this private company...although they may worry about the fact that the token is subject to such price pumps (from a regulatory point of view)