Can you name the crypto currency that saw over 20,000% gains in 2017? That’s Ripple. Yes, it grew twenty thousand percent since the start of the year!
First Ripple (XRP) catapulted in the top 20 on December 15, and in the last two days, it displaced the long-standing alt coins – Ethereum and Bitcoin Cash – to become the second largest crypto currency. Indeed, it is racing but can it catch up with Bitcoin?
The rise of Ripple
At the start of 2017, one XRP was .01 cents – a hundredth part of a cent. At the time of writing this post, Ripple is trading at $2.50.
According to the information on CoinMarketCap website, the crypto rose to 55.9 percent on Friday to reach $2.23. In the process, it overtook Ethereum to become the second most valuable digital currency.
At the time of writing, Ripple’s market cap has crossed $100 billion.
What is Ripple?
Ripple is a product of a San Francisco-based start-up which uses blockchain technology to develop payments network for the banking sector, digital asset exchanges and financial institutions. The official website of Ripple claims that more than 100 financial institutions use its network. The firm also makes a claim to move large amounts of currency quickly and cheaply.
According to the top executives, XRP was never intended to be a functional digital currency like Bitcoin. It was meant to be a mere utility for financial institutions carrying out their day-to-day transactions. The firm calls XRP a “settlement token.”
Unlike Bitcoin, Ripple has no mining. Rather than the value being created every time a miner uploads transaction data, its transactions are verified by multiple parties to get the accord.
There will never be any new Ripple coins created. Ripple Labs owns 60 billion of the 100 billion XRP in existence.
The recent ascend
Exactly why it has been bullish of late is a mystery. However, the SBI Holdings and subsidiary SBI Ripple Asia establishing a consortium with Japanese credit card companies using Ripple’s blockchain seem to have bolstered Ripple’s market value in the past few days. The Japan Bank Consortium (JBC) is a collection of 61 Japan-based bank members brought together by SBI Holdings and SBI Ripple Asia.
How to buy Ripple?
Ripple’s website enlists several exchanges where XRP can be purchased. Some of the top crypto currency exchanges in India where you can buy Ripple are btcxIndia, CoinDelta and BuyUCoin.
The different crypto currencies making their presence felt at the top is overwhelming and hints at good times ahead for the industry. If you’ve only just begun to know the crypto market or Bitcoin, you must also take a look at Ripple.