My perspective ~ Bitcoin vs. Ripple
A new report written by Francisco Blanch, who works as Bank of America Merrill Lynch's lead commodity and derivatives strategist argues that bitcoin will go mainstream only once banks start accepting it. The report outlines methods by which cryptocurrencies can be weighed against other commodities, singling out safety and liquidity as potential factors.
Mr. Blanch drew a comparison between bitcoin and commodities such as gold and silver. His note about volatility in the past year for silver is thought provoking.
"Bitcoin's volatility is very high compared to the euro, the yen or even gold," he wrote, according to CNBC. "But it fell twice last year below the volatility of silver, the world's currency for 400 years."
Mr. Blanch has an interesting opinion as it seems that he believes that when banks begin taking bitcoin as a form of collateral for products then and only then will cryptocurrencies be accepted by banks. He is correct when he writes that "we are not aware of any major institution that takes cryptocurrency as collateral at the moment."
*The report is not publicly available for view and I would personally love to see it. I read about this report here: https://www.coindesk.com/bank-america-analyst-bank-acceptance-crucial-hurdle-bitcoin/
Yet, with Ripple, the real life use cases for banks should be evident by now. It's being used by hundreds of banks around the world. To my knowledge, everyone involved in Ripple and XRP wants to maintain a stable price for the currency.
To quote their home page, "Ripple works with banks to transform how they send money around the world — a necessary step to compete in today’s growing economy. Our vision is to enable the Internet of Value so the world can move value the way it moves information today." https://www.ripple.com/
In my opinion not only is Ripple the product to ensure asset transfer is completed properly and quickly, it then becomes the commodity that Mr. Blanch is hedging against from a volatility standpoint.
Ripple is the future as it kills two birds with one stone...
Ripple is not a cryptocurrency !
It is an electronic token, issued by a company. Ripple Labs Inc.
They can do what they want, they are in the USA, so they can receive national security letters - they may have received some already.
They can create tokens from thin air and basically they are a FINANCIAL INTERMEDIARY
Just like Wells Fargo blocked wire transfers to exchange because Uncle Sam wanted it, they could (be forced) do the same....they are unsuitable as an investment!
I understand where you are coming from...and with that I know that the banks and the government have the power already, so I'm hedging my bets. I'm all for bitcoin/ether/litecoin...something...anything...that's better than what we currently have with fiat and the rate of government control over our lives. And with that, I'm a trained mediator who does my best to not let the perfect be the enemy of the good. So I always consider both sides of the equation as equally as I can...and I currently see Ripple as the "middle ground" and worth the investment.
But people cant wait to make cash on coins, so they drop their xrp...
True...I also dropped all of my bitcoin because of the coming fork whether it be hard or soft. I'm not really interested in getting caught up in the drama. So, I'm also thinking that a pre-mined coin/token/currency...whatever it is...should be easier to manage on both ends of the transaction, which is another reason I'm liking Ripple currently. Of course my perspective might not end up being what popular consensus goes with...but I'm putting it out there. Definitely interested in continuing the conversation...