Ripple is both record-breaking and controversial. XRP gained 36,000% in value in 2017. Comparing this to the 1.300% growth of Bitcoin, we can see an extraordinary rise. Ripple recently defeated Ethereum in market capitalization ranking and is now in second place. Many investors are very enthusiastic about XRP, while others claim Ripple is a threat to cryptocurrency’s core ideas.
Year of Ripple
2017 was the year of Ripple. As we reflect on Ripple, the question remains: why is Ripple growing, even during a market correction?
There are many answers to this question. Let’s start with the fact that December was a great month for altcoins. Several of them passed several days of pumping, which increased the price even by 100% per day. Ripple was one of the cryptos which caught up in December with such increases. The low price attracted investors.
Partnerships and media attention are other elements that often contribute to cryptocurrency growth. This was the case with an alleged IOTA-Microsoft partnership. The same is true of Ripple. American Express, as well as other big financial institutions, work closely with XRP.
Ripple is also popular in Asian markets. Ripple Asian partnerships and a 25% increase in the trading volume of BitHumb contributed to the price increase. Moreover, Coinbase will likely offer XRP, further inflating the price.
However, many in the crypto-community are skeptical of Ripple. The skepticism arises from the fact that Ripple is centralized and controlled by one company. In theory, Ripple can be “printed” at any time, which could mean an unlimited supply.
As a result, supporters of decentralized cryptocurrency often author the most unflattering opinions. For them, it’s difficult to trust a private company infinitely and it is all the more difficult to assume that the company created by it would replace national currencies. This is not what Satoshi Nakamoto really was all about.