Ripple cryptocurrency developed into the market because there was no virtual asset that would conduct cross-border transactions. The demand for such transactions is huge and Bitcoin cannot manage them efficiently. Ripple is an inexpensive, quick, and efficient method to perform transactions. However, like other cryptos, it is not decentralized as most of the mining process is performed by Ripple Labs. Many people trade with this crypto since it is inexpensive. But they do not comprehend why Ripple cryptocurrency is affordable. In this article, we will know it all.
Why Ripple Cryptocurrency Is Affordable?
It is only this cryptocurrency that has not skyrocketed till now although it is just a year older than Litecoin. The tale of its inexpensiveness started in 2012 when this virtual asset gained a major piece of the newspapers. Several financial institutions vowed to take part in the decentralized system that will be performing cross-border transactions, a thing that was missing with the other cryptos. Just after a few years from its launch, it observed more than 200 tie-ups with every type of financial institution. All of them are notable ones like MUFG Bank, Axis Bank, SBI Holdings, MoneyGram, and many more. With so many partnerships in hand, Ripple fell and it failed to even touch a $4 mark. A primary reason for this fall is it is a centralized digital asset. Ripple Labs is an organization that controls the value every time. Consequently, it is sure the organization will be able to manipulate the crypto’s stability with time.
It is in the nature of cryptocurrencies that they are volatile. However, things are different with Ripple cryptocurrency. To maintain the stability in price, Ripple Labs has hundred of billions of XRP tokens with them. Recently, the organization has put one billion tokens in an escrow account to maintain stability in the market. When these tokens will be consumed, it will put another 1 billion tokens back. If this is happening, again and again, each fresh inflow of cryptos will drop the price. It is similar to our demand and supply system which affects the price. Now, the vast circulation supply of these tokens is also a cause of Ripple’s low price. At present, we are dealing with it for $0.5 and the supply is 44 billion tokens. We can now estimate that the market capitalization is around 20 billion dollars. If we compare Ripple with its competitor, Cardano, Ripple has more token supply. Cardano has 20 billion tokens in circulation, which is very much less than our third-largest crypto. Due to colossal circulation, the Ripple price is affordable for many people.
Besides how the organization is dealing with Ripple, many crypto experts say that it is only this crypto that is pushing for crypto regulations all around the world. Wherever it goes, crypto regulations are the first ones to follow. It comes with the ability to adapt to such regulations. When the crypto market will be clear that Ripple is a safe one for investments, its prices will shoot up without a halt. XRP price prediction 2021 has already described that something unusual is going to happen with this crypto. Investors are assuming that their purchases will not ruin in the end. As the regulators allow the use of Ripple, many people will start adopting it and as a result, we will observe a quick price hike.
The biggest issue with Ripple is that it has to come out from the previous lawsuits filed by SEC. SEC takes charge of all types of securities that exist in the USA. According to this regulatory body, Ripple has gathered its billion-dollar investment by selling XRP tokens, which is counter-intuitive. Doing so is not a genuine way to get investments from the people. The USA has cut down its trading activity nearly to half or even less and this leads to a decline in the price of Ripple. No matter how many cases this crypto has been fighting against, it will take years to put an end to them. Then only, one can expect that the price of Ripple would increase like the other cryptos. They all are performing better than this one and if you have your investments in Ripple, you should take a look at Cardano and Litecoin. Both are competitors of Ripple and have beaten it in many areas.
Ripple cryptocurrency is affordable for everyone because there are many reasons behind it. Also, you cannot mine it because it is not a decentralized virtual asset. Several investors are still going for this crypto as they are hoping something big will happen with its fortune. They have HODL their cryptos and are waiting for that perfect moment. Ripple price predictions are also positive about it. All of them are showing an increase in the XRP price level. The future is bright for this crypto and it will surpass the competitors in the market after some years.