What XRP Does And Why It’s A Winner

what xrp does
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Ripple Labs, the company behind XRP, has indeed emerged as an innovative and powerful force in the world of cryptocurrencies. Despite being labeled by some as the "bankers coin," XRP has been a subject of controversy, largely due to its contentious relationship with the Securities and Exchange Commission (SEC). The SEC attempted to classify XRP as a security but ultimately failed to secure a legal victory.

Regardless of one's stance on XRP, it is undeniable that the recent win over the SEC represents a significant milestone not just for Ripple, but for the broader crypto market. This victory has reinforced the regulatory stance that XRP is not considered a security, providing clarity and reassurance for investors and enthusiasts alike.

The clear regulatory stance taken for XRP sets it apart from the vast majority of the 2 million plus cryptocurrencies available today.

Alongside Bitcoin and potentially Ethereum, XRP stands as one of the few tokens with a definitive classification as a non-security. This distinction allows for a greater level of confidence and certainty within the crypto space.

With its increasing adoption and unique features, XRP continues to shape the landscape of digital currencies. Its role in facilitating fast and low-cost cross-border transactions has garnered attention from major financial institutions and payment providers worldwide.

Despite the controversies surrounding XRP, it has proven to be a resilient asset, capable of weathering challenges and positioning itself as a key player in the crypto market.

As the cryptocurrency industry continues to evolve, the regulatory clarity surrounding XRP serves as an important precedent for other tokens and contributes to the overall maturation and mainstream acceptance of cryptocurrencies. It highlights the ongoing efforts to establish a clear legal framework and foster innovation in the digital asset space.

What XRP Does

In my humble opinion, it's a cutting-edge technology designed to revolutionize international payments, making them cheaper and faster than traditional methods.

Picture a world where sending money overseas is as quick and painless as sending a text message — that's the world Ripple envisions, with XRP being the technological tool that makes it possible.

XRP serves as a bridge currency in Ripple's payment protocol, helping to facilitate lightning-fast and cost-effective transactions across different currencies.

It's like having an incredibly efficient money changer in your pocket, ready to instantly convert your dollars to euros or yen to pounds, without the high fees that usually come with currency exchange.

With XRP, businesses and individuals can send money across borders seamlessly, which means it has the potential to become an integral part of the global financial infrastructure.

Will XRP Reach $100?

The short answer: It's possible one day.

The sensible answer: Not likely in 2024/2025. At its current price at the time of this writing, of $0.61 USD, a $100 XRP price would represent a 163X gain in price, and give it a market capitalization of $5,390,451,366,466. That's over five trillion in valuation, and currently, the entire crypto market sits at $1.6 trillion.

For XRP to reach such valuations, the entire crypto market needs to move higher. Bitcoin now sits at $834 billion, so that means Bitcoin would have to be valued in the tens of trillions.

Again, I do think this is all possible, but we are looking at many decades into the future. Instead, I would take a more realistic approach and expect a price target of about $10 USD for this cycle top in 2024/2025.

Is XRP The Next Bitcoin?

Firstly, we need to clarify that Ripple and XRP are not the same, even though people often mix them up. Ripple is the company, and XRP is the currency please remember that and keep that at the forefront of your mind. Think of Ripple as the central bank, and XRP as the money it prints – only there's a fixed amount, so no sneaky extra printing!

Now, to the hot topic. Bitcoin, the granddaddy of crypto, is like the gold of the digital age – rare, valuable, and takes some serious digital digging (mining) to get.

It’s decentralized, meaning no single entity has control, and it's been around the block (pun intended) since 2009. Bitcoin processes transactions in a way that's akin to traditional mining – it takes time and a lot of energy.

Enter XRP, the nimble newcomer. It doesn’t need miners and their massive energy drinks to validate transactions. Instead, transactions are verified by consensus among trusted nodes. It’s like having a group of friends quickly agree, rather than waiting for that one grumpy uncle to nod in approval.

And XRP is speedy, handling 1,000 transactions per second, compared to Bitcoin's more leisurely pace of seven. That's like comparing a snail mail service to instant messaging!

But the million-dollar question remains: can XRP dethrone Bitcoin? It’s tricky. While XRP has the advantage of speed and efficiency, Bitcoin has the first-mover advantage and a stronger brand that's recognized across the neighborhood (and the world).

They each serve different purposes, with Bitcoin being the go-to store of value (like a prized Picasso), while XRP aims to make cross-border payments as smooth as your favorite jazz tune.

In essence, both have their roles to play in the crypto symphony. They're like different tools in a toolbox – you wouldn't use a hammer to screw in a bolt, right? So, while XRP may not be the next Bitcoin, it's certainly carving out its groove in the grand tapestry of cryptocurrencies.

And just like you wouldn’t compare apples and oranges, it’s equally fruitless to declare a clear successor in the diverse crypto universe. Each has its flavor and appeal, serving up a smorgasbord of options for savvy digital diners.

So if you had to pin me down for a final answer is XRP the next Bitcoin? I'd say Bitcoin is Bitcoin, and XRP is XRP.

If you missed buying BTC in the early days, then XRP is your best bet, because of its incredible upside potential and use case in the broader financial sector.

Matt Barnes
Matt Barnes

Matt is the founder of TechMalak. When he's not buried face-deep in the crypto charts you can find him tinkering with the latest tech gadgets and A. I tools. He's a crypto investor and entrepreneur. He uses a mixture of A.I and human thought and input into all his articles on TechMalak, further merging man with machine.

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