Cryptocurrency Prediction And Mining.
The most talked about cryptocurrency over the last few months has been bitcoin, which was up an extraordinary 15,000 percent in 2017.
As Bitcoin soared to a price of $19,000 (£13,600) in late December, thousands of ‘altcoins’, which are cryptocurrencies with a non-bitcoin core, came into existence.
Cryptocurrencies are still emerging and many of these have failed. Ripple and bitcoin are up but that is only the beginning.
Here are a few cryptocurrencies that could soon replace bitcoin and are poised to make even greater gains.
Cryptocurrencies by numbers
Price of Ripple
Launched in 2012, XRP is the third largest cryptocurrency by market cap behind bitcoin and ethereum. At the moment, one XRP is currently valued at $0.16, which is about 57% of a bitcoin. XRP is also traded on major exchanges such as Kraken, HitBTC, and Bittrex.
Number of transactions per day
Ripple has about 250 million transactions a day, which is nearly double that of ethereum, which has 50 million.
Speed of transactions
XRP is about 25 times faster than bitcoin at sending and receiving transactions.
Percentage of cryptocurrency market cap
Based on market cap, XRP is almost 50% of the total cryptocurrency market cap.
Comparison to bitcoin
It may sound silly, but Ripple has more money in the bank than Bitcoin Cash, the second largest cryptocurrency by market cap. According to CoinMarketCap.com, XRP has about $30.4 billion compared to Bitcoin Cash’s $7 billion.
BITCOIN: THE SELL-OFF REPORT
That’s right. Bitcoin Cash is worth less than 1/10th of XRP. I have been watching bitcoin’s price move higher with a side eye because of its volatile nature. But there is no denying that bitcoin has caught fire.
I believe the big picture for cryptocurrency is still positive because of the rise of blockchain technology. But keep in mind that bitcoin is making new highs just about every day and at this rate, its price will eventually drop back to its average value.
Ripple’s price could continue to grow due to the mainstream interest in blockchain technology. But it could also fall back to earth as prices of other cryptocurrencies rise. After all, many people believe that bitcoin is in a bubble.
The smart play might be to buy XRP because it will likely rise even faster than bitcoin in the next few years. And it might also represent the best investment for the future.
Bitcoin could become a commodity like gold or copper. XRP could also be an alternative investment to gold or silver because of its lower volatility and higher liquidity.
Perhaps this prediction sounds crazy, but here are three reasons I believe it to be true.
1. Cryptocurrencies are too volatile
While bitcoin can fluctuate by $400 in one day, the actual value of XRP has never gone below $0.50 since its launch in 2012. If you had invested in bitcoin in 2013, that $300 investment would now be worth over $3,000. But if you had invested in Ripple and bought 1,000 XRP in 2013, that investment would now be worth over $5 million.
2. Bitcoin has been getting boring
At first, there was a lot of excitement surrounding bitcoin because it had so much more liquidity than other cryptocurrencies. But as bitcoin’s price keeps rising, bitcoin is getting boring.
The average bitcoin transaction takes 1.7 seconds to confirm, which is over four times longer than a typical PayPal or Visa transaction. Bitcoin could get even slower because bitcoin’s block size is capped at 1MB. And while there are improvements being made to bitcoin, bitcoin transactions are still taking minutes to be confirmed.
3. Ripple’s acceptance
Over the past few months, companies like Microsoft (NASDAQ: MSFT), ING, and JPMorgan Chase (NYSE: JPM) have announced that they will be using Ripple’s blockchain technology for international money transfers. Ripple’s blockchain technology allows these companies to transfer money overseas in minutes, which is much faster than other alternative solutions like Swift or Stellar.
There is no denying that Ripple has made great strides. But even though XRP has gotten less volatile than bitcoin, Ripple’s ability to scale internationally has not yet been tested. While I believe that XRP will grow as a payment network in the future, it could be too much for the average investor to handle.
Please share this post if you found it interesting and helpful.