I previously wrote about how some vocal consumer traders of XRP are calling it a “cripple” coin as it seems to be “going nowhere” (of which I expelled, here), but let’s just recap how we are getting “to the moon”:

Yes, it’s the uptake of XRP to being the ‘dominant’ settlement currency. Nothing else matters -nothing. So, when can we expect to “get to the moon”? For this, we need to have a basic understanding of what Ripple Labs strategy is, but first of all, we need to have a general understanding of Ripple Labs, their blockchain, XRP and how this all melts together to get us where we all want it to go.

What problem is Ripple Labs solving?

Firstly, note how I start with the problem Ripple Labs are solving? Now, try and show me real-life problem solving many of these other blockchains and crypto currencies deal with? Yep, thought so! But, we’ll discuss hype vs, usefulness in another article, at another time!

Problem 1. International money payment transfers are a pain. Even from a consumer point of view, if you’ve ever sent money internationally via a bank transfer (or needing to receive), delays can be days or nearly a week sometimes!

Problem 2. Foreign currency exchange is expensive. Charges get passed back and forth between banks with the end-user (consumer) bearing the brunt of the cost.

Slow turn around times at a costly rate? Yep, that sounds like a great problem to solve.

Where does Ripple Labs blockchain come in to this?

Ripple’s blockchain can be summed up with these two analogies:

Firstly, the speed. A great way to compare current, archaic process to Ripples solutions is like comparing mail delivery versus a P2P instant messenger, i.e., the archaic way needs to go via 1 or more third parties (the postal service), which then needs to move between one location to another, literally at a snails pace in comparison to Ripple’s next to instantaneous transfer of information via the blockchain.

Secondly, there’s the cost. Cost associated with actually creating the transactions and movement of money. Banks have their own procedures and process, usually, quite different to others. And while there can and will be overlaps, it’s like 2 different languages trying to talk to each other.

Whereas, Ripple’s blockchain, when integrated in to bank A and bank B’s processes, this means the translation of money isn’t needed – everyone is talking the same language.

Where does XRP come in to this?

So, while Ripple’s blockchain speeds the process up considerably, there’s one more problem to solve – Bank A in American and bank B in the UK needing to have nostro accounts with each others currency… a simple headache between two countries, but then placed in to the global currency market? This causes vasts amounts of money to be sucked up in to holding all these other currencies.

That’s where XRP comes in. It further improves the speed of money transfer internationally, but it also improves the liquidity of each bank as they no longer need nostro accounts full of foreign currency, thus, free cash up to be utilised elsewhere in the country.

How it all comes together – a timeline

Look, the long and short of it is, we cannot (as outsiders), put a date on this, but one thing is for sure; it’s not a bunch of consumer speculators that’s going to cause a major break-out – it will be the gradual (or expedited) speed of which banks, other financial institutions and large corporations take up XRP.

But hold your horses! First of all, Ripple need to keep the throttle down with bank adoption of the blockchain. Remember, banks (and other fin. institutions) are like cruise ships, to make a turn, it’s a slow and laborious task and that’s just from an internal integration point of view – this isn’t even touching on the point of how each bank has to uphold the legal requirements set on them from their respective country… and we all know how governmental bureaucracy can slow things down!

However, I’m sure that those that have already joined the Ripple blockchain and those that do so in the future, I’m more than confident that their next stage, once confidence is built that everything is working as should be the case, XRP will quite rightly be the next step.

Watch Ripple news announcements closely – look at how many are on-board with them (that we know of outside of NDAs) and you can see that all signs are positive and we’ve moving in the direction of the moon. So, next time you hear a disgruntled XRP trader, remind them of how Ripple is different and actually has a user case for its price increase, where as, how can anyone substantiate the insane Bitcoin rise?

 

CryptoCoinPrediction.com is not responsible for the article’s content or accuracy and may not share the author’s views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest. 

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T.

The Coinbase XRP Rumour – The Case for NOT Adding XRP

As a holder of a substantial amount of XRP, amongst other alt coins, as well as Bitcoin, I cannot tell you how bad my cringe glands flare up every time I hear someone state with absolute certainty, that “XRP will be added to Coinbase soon!”. Honestly, it’s quite interesting to watch how this rumour has played out and evolved since December 2017.

Rumour Fuel

The fuel of this rumour? Sceptics tell us it’s the “whales” planted this rumour and the community ran with it. Personally, I don’t care who started it, it wasn’t big, it wasn’t clever – and that’s what worries me about the community. Is it really made up of a bunch of thick twits, or is it simply overly optimistic wishful thinkers? I think it’s a good chunk of XRP holders that have been blinded by their wishful thinking – that’s the real issue here. People need to finally open their eyes, or we’ll continue to get screwed by ridiculous, emotional movements in price. As we’ve said again, and again, and again; DO YOU OWN RESEARCH.

The original rumour video

Simply viewing a video of someones screen, reporting to be from a Coinbase engineer, then believing it, is beyond madness, but yes, that’s how the first rumour of XRP on Coinbase took flight!

Naturally, it was debunked with ease, but it was too late – the rumour mill spun up and out of control and anyone saying it was fake was shouted down as being a pessimist!

Coinbase keep alluding to XRP being added

Are they, really? It’s funny how someone can read a blog post and see it as a positive, then someone else (I) can read it and see it as a negative, i.e., not in favour of XRP being added. And yet, here we are in March and people are STILL convinced Coinbase are going to add XRP, even though Coinbase COO openly mocked XRP on CNBC’s Fast Money.

Anyway, here’s why we think XRP won’t be added any time soon.

Note: we are saying we do not believe XRP to be added any time soon. That doesn’t mean it won’t be added in the future, but we doubt very much any time soon – and absolutely not one of the first set of Alt Coins to be added. Reasons listed:

  1. Coinbase’s FRAMEWORK for selecting new coins to be added to exchange. A FRAMEWORK, for those that don’t understand, gives and outline and sets of criteria to use when evaluating a coin to be added. There are numerous fall downs for XRP at this point already; a) centralised (although I realise the ledger IS becoming LESS centralised). b) Company must not own a majority of the coins. Hmm, contentious point, but it’s believe to hold the MAJORITY. However, this also includes the escrow that they setup, but I think it’s still fair to add Escrow numbers to the mix as they still have control over this. View the framework for yourself here: https://www.gdax.com/static/digital-asset-framework-2017-11.pdf
  2. Reiterating protocol for adding new coins. Coinbase ran in to some issues late 2017 with some alleged underhand dealing with Bitcoin Cash (BCH) and inside trading, i.e., buying it cheap prior to announcing that they were going to add to Coinbase, which they knew would boost the price. Thus, I believe this is why they are reiterating their efforts to not look like fraudsters… I mean, prove they’re not fraudsters. Anyway, this blog post also reiterates that the FRAMEWORK (as per point 1) is still in use, but also some other things to note, in particular to RISK scoring. I’d say, right now, on top of the framework, the risk score for XRP is quite high for Ripple, due to the R3 Ripple lawsuit that’s still ongoing.

Conclusion

*Sigh*. I don’t like being *that guy* that sounds like a neggy peggy, but to me, it looks obvious from the above that XRP is not being added any time soon. So, what does that leave us with? Stellar Lumens (XLM)? I think that’s more of a sure fire bet – especially as it’s XRP’s arch nemesis… and let’s face it, Coinbase CEO Armstrong made it very clear in the past that he is not a fan of XRP. Frustrating? Yeah, we know. :-/