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A lot has changed about Ripple since this article was published in May of Since then, I have ethereum review quora my thoughts and released them in a blog post for Hackernoon. Ethereum review quora can read that article here. Here are the contents of the post:. Ripple is a scam from CryptoCurrency. However, it seems that many people treat Ripple like any other cryptocurrency, like Bitcoin and Ethereum. This fundamentally misunderstands why Ripple was created and how it should be used. And considering most users are banks, they have no reason to accept you.
The reason for this is because Ripple is designed to take real world asset and transfer them to the Ripple Network. They can then trade these issuances with other Ripple 3rd parties, taking advantage of the low cost of transacting on the blockchain.
The reason for these trust lines is ethereum review quora issuances hold very real value. If I have an issuance for a pound of gold, the other parties trust that I actually have this asset. If a malicious 3rd part creates a fake issuance, it will be treated as real. Even one instance of a fake issuance can break the trust of the system and collapse the network. Normal consumers are not ethereum review quora to interact with the system and have better alternatives available.
You can read more about the specifics here. When you created a transaction, you were sending a store of value to another account for payment for goods and services.
Miners created nodes on the network to process transactions and were compensated with this cryptocurrency, either through fees or mining rewards. This is not how Ripple works. XRP was created as an anti-spam measure to make it costly for people to spam the network with transactions.
All Ethereum review quora was created to be destroyed and if the network lives long enough, will be destroyed. While XRP does seem to have an incentive around trading as state herethe ultimate point of Ethereum review quora is to be ethereum review quora, not held. You can read ethereum review quora about transaction fees here. Private exchanges and liquidity providers may choose to hold additional XRP for trading. Ripple the company does not promote XRP as a speculative investment.
The majority of the currency is controlled by the Ripple Foundation and while they absolutely have the option to sell of their share for a quick profit, this goes ethereum review quora the goals of the organization and their mission. One thing I am not certain of is why the cryptocurrency is allowed in exchanges in the first place. If you have ideas about that, please comment on this post, as I have not found any research explaining that decision one way or another.
This article is not intended to be a defense of Ripple and their practices, but an explanation of why Ripple is different from traditional cryptocurrencies.
They can decide to cash in on the value, or completely devalue the market by flooding it with cheap XRP. For long-term holding, this is a deal breaker, particularly in ethereum review quora market with so many good options.
They want banks to invest, not individuals. They control the price of gas and gold through the amount of futures and options contracts that they trade.
They have all kinds of insight as to what will happen because they are in the know. One of the Federal Reserve presidents made a comment about The Fed coming up with their own digital currency because it is clear that they are scared of Bitcoin unless the theory about the international bankers creating Bitcoin is true.
So maybe Ripple is right up their alley. In the early stages of Bitcoin ethereum review quora were a lot of articles similar to this one being put out saying that Bitcoin was a scam. Either the banks were doing it to discourage Bitcoin buyers, or wealthy individuals were telling people to stay away so they could hoard up. Do your own research guys. Its not like bitcoin in the least. Watch the money run from bitcoin to xrp.
People want accountability when it comes to their money. Always have, always will. I knew you were all wrong. Sorry, but at Harvard Business School we actually learn how to evaluate a company. Based on that, and it was damn simple, I loaded up on xrp in April Invest with your brain, not your ideology.
I took a screen of the supply of ripple 2 weeks ago and again now. It has gone up about 90, It also went to 10c a couple of hours ago and has now returned to 21c Cheesy…. In that sence you might be right. However, at the link you gave yourself, you can read about two additinal kinds of gateways:.
Most cryptocurrencies rely on private exchanges to provide a market for the cryptocurrency, but the Ripple Consensus Ledger has a currency exchange built into the protocol itself.
Currently, Ripple does not have widespread support for merchant operations. My speculation is, that one day when everything is settled there will be an exchange rate between Ripple and FIAT. Furthermore, appearently the design includes an option for merchants to be directly attached to the ledger. That depends entirely on how Ripple decides to act. If they want to make it scarce, they can. If they want to flood the market, they can. There are plenty of whales, but no user controls this much of the market.
When the DAO hardfork happened, the mining community voted against the fork. The Ethereum review quora Foundation want the fork, and pushed it through anyway. As POS is implemented for Ethereum, an ice-age clock will be put in place that makes mining less and less attractive, forcing the miners off the network.
As long as the music is playing, people will be diverted away from bitcoin and focused on ripple. If Ripple the company was to sell the currency they own, they could very easily flood the market and crash the price. Have you ever thought the people who own Ripple might cash out and flood the markets and screw the banks over…everybody going down in a giant tsunami while being away on higher ground.
Another reason not to own Ripple. On the other hand, I believe if you do speculate in this one pick a tiny amount of your money and wait for the big payoff since all banks will use it, it could be worth a lot. No one can just dump their ripple. They can split it into tiny ethereum review quora either because of transaction costs that specifically preventing these attacks.
Therefore trust is created between banks and majority coin owner. This is future of institution transactions. The Bitcoin blockchain is way to slow, uses too much power, and is too expensive. Ethereum strength and best application lies in Smart Contracts. Currently the Ripple network is the only one that can handle enormous transactional volumes. Here is what is going to ethereum review quora Bitcoin will be used like gold.
As a long term store of value. Ethereum will be the platform that all smart contracts run and are funded on using Ether cryprocurrency. Just like any other man made product. You should own all 3. People use Ripple despite XRP, not because of it. XRP is intended for bank use. Meaning, by participating in Ripple, a bank can save vast ethereum review quora of money on processing transactions, time and efficiency related to this as well as have a need for less ethereum review quora, all the while the information being publicly available.
This is important because banks are losing fee revenue left ethereum review quora right. Due to the design and intended target audience banks the public exposure is more secure as its primarily exposed to member institutions and not the masses for the most part. Lastly, ethereum review quora the outside chance Crypto does wreck their world, they are already participating and now have a potential currency replacement for the defunct USD.
Actually, I can think of a bigger reason: You can view the article here: Stellar is very similar to Ripple. Seems to me that if the banks are into it, then it could be a good investment in the medium term. Most people are using ethereum review quora currency more as stocks than currency any way. Outside of bitcoin not much ethereum review quora being used ethereum review quora make comercial purchases, as far as I can tell. This is a recent addition that just went into placement.
Update A lot has changed about Ripple since this article was published in May of Here are the contents of the post: Ripple is not an Open Blockchain.
Conclusion This article is not intended to be a defense of Ripple and their practices, but an explanation of why Ripple is different from traditional cryptocurrencies. XPR clearly is deficient compared to the one true cryptocurrency: However, at the link you gave yourself, you can read about two additinal kinds of gateways:
