Ripple Is It The Crypto-Currency Of The Future?

Another phenomenon that exploded the demand for crypto-currencies last spring, the decision of Japan to recognize the Bitcoin as a legal currency. All the investors who missed the train in 2009-2010 therefore rush to everything that moves, and new dematerialized currencies explode in the eyes of the general public. So much so that Bitcoin's market share in these currencies rose from 95% to less than 60%. However, the Bitcoin is doing well. Its parity with the dollar has never been to its advantage, and some specialists even predict a future parity of $ 10,000 for a Bitcoin.

A bubble swells, therefore, and will necessarily leave people on the tile. Of all these values, some are less reliable than others. And the natural evolution of the markets (R & D or Start-up, marketing, model and competitor break-up, market exploration, bubble inflation, explosion, concentrations and mergers) will remind Is not just a gambling, but a real work of substance, to be sure to bet on the good gold seeker. The one who will undermine the good seam.

The Ripple case

Among these values ​​that emerged in favor of a spring of all possible on the market of crypto-currencies, one finds therefore Ripple. And it is possible that even crypto-currents lovers have a hard time understanding Ripple's functioning and ultimate goals. Ripple is the name of the company that distributes the currency XRP. To date, the XRP 100 billion ceiling has been issued. But most of it has not yet been distributed, so as to avoid hyperinflation. It is important to distinguish between creative society and money, even if the two are very intertwined and Stefan Thomas, one of the leaders, has firmly ruled out the possibility of creating another crypto-currency based on the Same protocol: "We think XRP is the best choice."

Unlike Bitcoin and many dematerialized currencies, the XRP is deflationary. None of them, undoubtedly disturbed by the particular functioning of the totally open source crypto-money do not hesitate to propagate the idea that the funds would be unlimited and managed centrally. This is obviously wrong. In a short time, the XRP will be even more decentralized than the Bitcoin, and unlike the Bitcoin, which has a limited stock (like the majority of crypto-currencies) without possible deflation of the Bitcoins, a very small part of the XRP Are "lost" during transactions, reducing stock and ensuring the increase in value, exactly the opposite of inflation with unlimited stock.

The objective is to accelerate financial transactions from one country to another and replace SWIFT

The fact is that the XRP can thus ensure its stability, and can thus attract the big banks all over the world. This is Ripple's main objective, to integrate the major networks through banking institutions and major financial groups. The latter are already seduced by the Ripple offer and even encourage the use of the XRP. Stefan Thomas supports this point by clarifying and repeating to anyone who wants to hear it that market regulators are asking banks to adopt the XRP.

In fact, Ripple is already experimenting with 75 major banking institutions around the world, and has even hired in April 2017 the former business director of SWIFT. SWIFT is what allows us to transfer funds securely from one country to another, all over the world. But the system is far from perfect in the sense that it takes several days to transfer funds. With Ripple, transfers run securely in seconds, a few minutes at the most. And that's what the banks are interested in.

magine a world where each transfer would only take a few seconds to reach its recipient. One, like a mail. In the end the Ripple protocol would be much like the SMTP protocol for mails. Accelerating remittances would further facilitate economic activity. It would act as a true stimulator. Journalist Logan Kugler, a specialist in dematerialized currencies, tells us not without humor that today the fastest way to transfer funds from one country to another is to take the plane with a briefcase loaded with banknotes . And this is a problem that Ripple is correcting, definitely.

The whole now is to move cautiously, to avoid the bubble described above. And even if there are high risks that this bubble will burst, it will affect all dematerialized currencies, but will have very little impact on the intrinsic value of the XRP, and absolutely none on the Ripple protocol. For, much more than money itself, the XRP is the protocol put in place by Ripple that could revolutionize the world and make the Californian society the future of currency and currency exchange in the world .