Ever since its introduction in 2009, Bitcoin (BTC) has been considered the gold standard of cryptocurrencies. Yet, crypto traders shouldn’t dismiss high-potential coins like Ripple stock, also known as XRP. In fact, an argument could be made in favor of Ripple as today’s most promising cryptocurrency investment.
For years, Ripple has remained in Bitcoin’s shadow in the crypto trading community. Because of the price difference, some folks view Ripple as having lower status than Bitcoin, much like gold traders sometimes view silver.
That’s a shame as Ripple shouldn’t be viewed as a second-class citizen. Granted, you won’t likely see Ripple reach some spectacular number like $20,000 anytime soon.
Yet, Ripple has its own advantages and could soon have its time in the spotlight. With that, the media and the crypto community should agree that there’s room for more than one coin in one’s portfolio.
A Closer Look at the Ripple Price
At the very least, we can say that Ripple is highly affordable. Even after a recent price spike, Ripple remains below $1.
I believe that Ripple won’t gain people’s respect until it gets above $5. That’s a key psychological level because the U.S. Securities and Exchange Commission assigns “penny stock” status to any stock that’s trading for less than $5.
Ripple isn’t a stock, but the road to acceptance and legitimacy will, I believe, be paved with higher prices. And indeed, the bulls did a terrific job of moving the Ripple price in November (24 cents to 69 cents), but that should just be the beginning of a much larger bull cycle.
And while Bitcoin broke through all-time highs multiple times in December, Ripple still has a very long way to go. Ripple has gone as high as $3.40 in the past, yet as of Dec. 21, the price was only around 52 cents.
Seeing Ripple as Unique
Clearly, the Ripple bulls have a lot of work to do in 2021. The key will be to promote a better understanding of Ripple’s unique value proposition among the vast sea of crypto coins.
For instance, whereas Bitcoins are currently being mined, a fixed supply of 100 billion Ripple units were already minted in advance of the network’s launch. Therefore, Ripple investors don’t have to worry about mining-related events like the “Bitcoin halving.”
Also, Ripple is known for the speed of its transactions. The Ripple network is considered to be more centralized that the Bitcoin network. This, along with the fact that there’s no mining required, allows for comparatively lightning-fast transactions with Ripple.
Plus, banks like Ripple because it makes cross-border transactions cheaper. By eliminating the middlemen typically associated with cross-border payments, the Ripple network makes it super-cost-efficient to send money electronically.
Partnering for Progress
Speaking of cross-border transactions, a value-added partnership with a famous remittance and payment company sheds some light on Ripple’s potential growth trajectory.
Evidently, both parties have already reaped the benefits of the collaboration. CEO Brad Garlinghouse tweeted this to MoneyGram International Chairman and CEO Alex Holmes:
“Amazed that it’s already been a year and a half of our partnership @walexholmes. Ripple and MGI have settled billions of $ globally using XRP in production – it’s quite simply the most efficient digital asset for payments (speed, scalability & low transaction cost)”
With MoneyGram enthusiastically on board, you never know which payments facilitator or banking entity could be the next one to leverage Ripple speed and efficiency.
The Bottom Line
Constantly comparing Ripple to Bitcoin may be tempting, but it’s not necessarily productive or even appropriate.
A closer look reveals that Ripple is truly unique and has its own compelling set of advantages. And with that, 2021 could be the year when this little crypto coin finally gets the respect it deserves.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.