Opinion: Should you buy Ripple’s XRP?

*Harry’s opinion only – this is not financial advice

If you’re wondering about the future of XRP, I think it would be best described as uncertain.

Currently, XRP stands as our second most popular coins to buy, and with it making up 25% of my portfolio, I’m still generally confident that it is a coin worth hodling. My logic goes as follows:

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Following the release of Facebook’s ‘cryptocurrency’ Libra in 2020, the banks and fiat will see themselves stuck in the middle of two rapidly growing forces – centralised cryptos (like Libra) and decentralised cryptos (like Bitcoin).

As these two massive forces collide into fiat and banking and start to cut into the market share of international and day-to-day to payments, I can’t see anything else for the banks to do to keep their throne but innovate.

This is where a crypto/blockchain like XRP or XLM could come into play.

Ripple XRP logo in a blue blockchain vortex

Why Ripple XRP Could Succeed

It currently takes 4 days on average to send money across borders to another bank from NZ, meaning it’s faster to physically mail your money to the recipient’s country than it is to send it via traditional banking – in most cases. You also can’t send money in the weekends, and it can be super expensive to make these transactions too.

We saw that American bank JPMorgan released their own cryptocurrency to speed up their own internal payments and settlements, but what good is that for sending payments to other banks instantly unless every other major financial institution is using it.

Everyone needs to be on board with the same blockchain or else it won’t be much better than what we have now. That’s why I think Ripple, XRP and their systems are currently the leading contestants for upgrading our already very established fiat-based system.

XRP ripple partners

You can see XRP’s full partnership list here – but it includes many massive banks and financial institutions including ANZ, Westpac, Western Union, HSBC, The Bank of America ,The Bank of England, The Commonwealth Bank of Australia, JP Morgan, The Royal Bank of Canada, The National Bank of Abu Dhabi, Barclays, Sony Bank, The Bank of Thailand, Mitsubishi Corporation, and American Express.

I am still somewhat of a novice with XRP… But I will say that they are absolutely killing it with partners. XRP was basically built to be an instant fiat-to-crypto-to-fiat instrument, to increase the speeds, costs, ease of accounting and general efficiently of using fiat.

You can see our basic rundown by clicking here.

Ripple vs swift logos on a black and white chess board

Who is Ripple XRP Up Against?

According to the US treasury (you can find this report here), the world’s current leading payment infrastructure SWIFT pushes approximately $5 trillion US Dollars through its systems every day.

Unless SWIFT significantly ups their standards and speeds, IMO, it seems inevitable that a blockchain infrastructure like Ripple will take this cake and replace SWIFT. Stellar Lumens is also going for this title too though, so they would also be a project to look out for if you would like to cover all your bases.

I am not 100% certain of if Ripple and XRP will take the international payments cake – but It’s clear that a slow clunky system will not meet the demand of the highly automated 21st century.

This is 100% an opinion piece and you should do your own research on XRP before buying. This article does not contain financial advice, trading advice or life advice. 🙂