For this article, we are going to go over the current market sentiment, RippleNet developments, and why Ripple could potentially replace Bitcoin as the future global currency.
Nothing should be considered financial or investment advice. Enjoy the ride.
Bitcoin Support At $10,000
If you have followed some of these articles on the Tribe, you will remember that there were two main alternatives to the market after the Bitcoin surge that we discussed.
- Bitcoin surge could cause an alt coin break out from investors hedging their gains from Bitcoin back into altcoins currently still under priced
- Bitcoin surge is met with hard retracement without an altcoin breakout causing potential new all time lows for most assets on the market
Currently, with Bitcoin holding strong at the $10,000 price levels and pushing back over $11,000, altcoins are still yet to substantially post gains as previously seen in the 2017 bull market. As Bitcoin holds it’s levels, there will be a continually growing buy pressure around altcoins as the market supply diminishes. This could potentially be the last time certain coins are at these prices levels ever again if Bitcoin continues to hold its new support level.
The growing adoption rate is also supporting this narrative. Not only has the president tweeted recently about cryptocurrency, but Facebook’s Libra coin has caused sparks to fly in congress, Former White House Chief Strategist Steve Bannon says, “Cryptocurrencies have a bright future”, and Walmart recently announced their entry into the digital asset space.
This is by far the highest level of exposure and discussion that the space has ever received to date.
RippleNet Continues to Gain Exposure and Adoption
Although, It seems that Ripple is the main company pushing the utility of global transactions through adoption. Without wavering, the company and asset have seen a dramatic push in infrastructure and coordination with banks, companies, competitors, and governments.
First on the list of recent developments is a speculative post about a company called Westpac.
Westpac is one of the “Big 4” banks in Australia and was the first and oldest banking institution in the region. The discussion was started from this post where a XRP fan posted that the Westpac company, which has always been on the RippleNet committee, is now also included on the customer landing page through their logo.
A comment from someone claiming to be apart of the tech team of Westpac (totally believable right?) claims that the company has not instated any use or utility for the digital asset XRP, but continues to be a vested company with interest in blockchain technology and development.
Moneygram launches XRP
Another one of the recent announcements includes the previously known partnership between Moneygram and Ripple. In July, Ripple invested into the company, Moneygram, purchasing stocks and enabling the partnership. On top of this, Moneygram currently has a partnership with the company Sentbe, which will also use XRP to settle payments. Sentbe will focus on offering remittances to their client pool by utilizing the xRapid product.
Chile Welcome Ripple
Similar to the other companies listed, a Chilean company, Currency Bird, also decided to recently start using XRP to settle payments. This company went live recently with their product after signing an agreement to do so in March of 2019. An article from the Daily Hodl mentions that the product Currency Bird will most likely utilize will be xCurrent, one of Ripples 3 main products.
Ripple Could Replace Bitcoin As A Global Currency
OK, this is the part that could become controversial, but hear me out. Just because Ripple could replace Bitcoin as a global currency, does not mean that Ripple would replace Bitcoin all together.
Today, Bitcoin is becoming more widely used as a store of value, and not as its intended purpose of a global currency. More people trading Bitcoin to speculate on price changes, and hedge into and out of traditional markets then ever before instead of purchasing their coffee with it.
With that being said, XRP and Ripple are doing what Bitcoin can not. That is directly solve a problem by reducing friction almost entirely.
If the banks utilized Bitcoin there would be a reduction of international fees and time spent on transfers, but the entire Bitcoin network would essentially clog up and fees would still be substanial. Bitcoin was not fully designed to host the millions of micro transactions that happen daily in an efficient matter and most importantly, feelessly.
Ripple solves these problems and more by partnering with banks to create an instant and feeless system for international transfers. In light of this, if the banks begin to see the benefit of transacting in XRP, they may eventually decide to use it for more than international settlements. They could potentially see the utility of using XRP as a daily mean of exchange.
This would not change Bitcoin’s purpose that the market has chosen for it, as a store of value. Bitcoin will more than likely continue to become the digital gold of the internet era instead of a a currency used to purchase groceries.