Hello friends, welcome to today’s video on Finance Vidya
Friends let’s talk about Ripple
and the XRP Coin
Is it possible that Ripple
could give great returns in 2018?
Should we consider investment in Ripple?
Can Ripple repeat the performance of 2017
this year as well?
Will an investment in Ripple
be a great investment for the future?
Can we call it future gold?
gave great returns
in 2016 and 2017.
there’s a lot of buzz
that Ripple could be the next Bitcoin
Bitcoin performed well in 2016 and 2017.
Just like Bitcoin went to a high of close to $20K
Similarly could Ripple go that high as well?
Currently Ripple is valued around
1 US dollar
There’s a lot of talk that it’s undervalued
and also that it is overvalued
so should we consider
an investment in Ripple?
Is it a good idea?
Currently the price is hovering
around 80/90 cents to
1.10 US dollar
for some time
Fluctuating around those levels
and it’s being traded in that range
for 2 to 3 weeks now.
So would there be a breakout?
Will Ripple show a sudden rise?
Or is it that
Ripple is already overvalued?
Like how some experts are calling that $1.00 is already too high for Ripple
Friends, Bitcoin made a lot of millionaires overnight
So there are similar expectations from Ripple now
that it would also make a lot of overnight millionaires
That you buy it for a dollar
and it would reach $100
So would it really see a 3 digit value this year?
Friends, timing is the key for any investment
Correct timing, entry and exit are really important
If the timings are wrong
our investment could sink as well.
We can become homeless instead of millionaires
and if our timing is great then
we can get really good returns
and make a lot of money
in this cryptocurrency market.
So, is it a good time for
buying into Ripple?
Friends, why exactly should we
invest in Ripple?
When we have so many other good options.
like Ethereum, Bitcoin Cash and Litecoin
then we should we consider Ripple?
Let’s find out
how exactly is Ripple different from other cryptocurrencies.
A lot of other cryptocurrencies were launched
to solve some existing problem
First Bitcoin was founded
to solve Gaming related problems.
To issue tokens
in gaming, and for Gaming points and coins
and a system was formed to redeem these points
and it became a
valid virtual currency.
Ethereum was founded for Smart Contracts
Similarly Ripple was formed for
Banking related transactions
and for fast money transfer.
If we want to transfer money to US
then it takes a lot of time
if we send using SWIFT mode
even if we send with a usual Crypto coin, even then it takes some time.
And if we transfer through Bitcoin to US
then it’s a possibility that
it could take a few hours
and if delayed
then it’s possible that
it takes more than a few hours.
Ripple speeds up this transaction to a few seconds
That’s the USP of Ripple
that it speeds up your
It was built as a money transfer tool
which is essentially used by
and banks are using it as well,
and so are other financial institutions
Recently Indusind Bank
has integrated with Ripple
Now they will also be using
the services of Ripple for money transfers
A Brazilian Bank
has also tied up
with Ripple and
recently there have been a lot of tie ups
Ripple has over 100 clients
and associated partners
with whom the company is working with.
And most of these clients and partners
are Banking and Financial Institutions
Core business is money transfers
Quick money transfers
which is their USP
Ripple is currently one of the fastest modes to
transfer money across the globe
That’s the advantage that Ripple has
Friends, Ripple’s price in
January 2017 was
merely 1 cent
and it went up to
4 US dollars in an year.
Right now it’s valued around $1.00
It’s already around 100 times it’s value from around an year ago.
100x returns in an year but
it’s has genuine real world applications
It has genuine clients
It is working in a genuine
business vertical, and a genuine business model.
A lot of cryptocurrencies launching these days
their uses are questionable, we can’t even be sure if they are using Blockchain
technology or not
How are they solving business problems?
Cryptocurrencies are being abused as
money making tools
Companies are raising funds using cryptocurrencies
The real business is something entirely different
They use pumping and dumping tricks to make money and then vanish.
But Ripple is a cryptocurrency that
is used in actual businesses.
It’s line of business
is very clear
and very frequently it’s signing new partners globally
and making new clients
It’s meeting new banks
and discussing how Ripple can add value to them
and with the use of Blockchain
technology and its applications
and how they can
speed up the transactions.
The banks that are not considering Ripple
are likely to be left behind
The financial institutions
that are not partnering with Ripple
or if they don’t have a plan related to Cryptocurrencies
or the Blockchain technology
they are likely to be left behind.
YES bank has also implemented Blockchain technology
There’s a possibility that even Yes Bank
for money tranfers,
signs an agreement with Ripple.
Indusind deal with Ripple
is a very positive sign.
We have to
consider and understand that
Indian banks are showing interest
in Blockchain technology
Indian Corporates are showing interest
in Cryptocurrencies and its uses.
That how can they apply these technologies as well.
Ripple is a
and it’s based on a good model
but there’s a big drawback in Ripple
Experts say that
Ripple is a centralised Cryptocurrency
most of the other
based on open source models
and are decentralised.
There’s no single owner
the founders don’t have major holdings,
but Ripple is a centralised cryptocurrency.
It’s managed by a team
and a company, that has an actual business.
The company and its promoters
hold close to 60% of the coins
from the entire Ripple circulation
This is a slight flaw as per the experts
But if we talk about stock markets
if the promoters hold a major share of the company
then it means
that the promoters are interested in the
company’s growth and profits
Promoters want it to grow
and that it distributes dividends
but in cryptocurrencies, the experts think in a different manner
So, is making an
investment in Ripple
a good decision? Let’s find out
Friends, if we are looking to invest in Ripple
Then we can invest in small bits
like $100/200 at a time
See, you can
get good returns from it, because
it is based on an actual platform
there’s actual usage for Ripple
and it is solving real world Business problems
So if we invest in small bits
and we are able to get reasonable returns from it
then it’s far better than other options available.
Ripple’s price at current date
is a good figure at around $1
even if it goes to $5
then it means you’ll get 5 times return
and if we start making small investments in Ripple
and carry that on for 4-6 months
and after that when all the fear around Crypto market is faded away
and it’s price rises up
then we will get returns
on our investment in a consolidated manner
So, instead of buying a single big lot
we can make small investments
on a weekly or biweekly basis.
Some people would say that
it might happen that
next month they might get Ripple at
around $1.5 or $2
then they’ll lose around 50 cents or a dollar.
That’s not really a loss,
the initial investment that you made in the first lot
would have given you a profit,
so averaging is always done on the upper side
and similarly SIP exists in Mutual Funds
and that’s how people are making money in Mutual Funds.
You get good averages
if we buy at different rates.
Friends, Ripple is a
very good crypto currency, that is
successful in fast money transfers.
It is a kind of crypto currency that
has it’s own platforms
which are being used by banking customers.
It has essentially 3 such platforms
2 of them are being used as we speak
and the 3rd is under production and will be rolled out soon.
First platform is xCurrent
that is being used by banking customers
and banks are using it for
The second platform is xRapid
that is being by banks
to maintain liquidity.
Fast transactions and
fast settlements and xRapid
is very successful in helping maintain liquidity
that is being used by banks and other financial institutions.
platform that is being worked upon and
is launching soon is called xVia.
It’s a product for non banking customers
that is very similar to xCurrent.
The features of xCurrent are
being used by banking customers
and xVia is meant for non banking customers
for money transfers.
So it would allow Ripple to
support speedy money transfer for it’s non banking customers.
Ripple has a lot of advantages and plus points
and we can consider investing in it
and we can
invest in small bits at regular intervals
and think about investing in it
but we don’t have to get greedy
and have to time our investments well.
We can get great returns from Ripple
and if we talk about diversification,
if we are already invested in some other crypto currency
so we can diversify and make little investment into Ripple as well
because Ripple could get us good returns in future
as it’s very promising.
However, the issue with Ripple is that
that it is a centralised cryptocurrency
and that is the reason that GDAX is
not allowing to list XRP on it’s exchange
Coinbase has not listed the coin on it’s
till date, the reason being
that it’s policies don’t allow it to
list a centralised cryptocurrency.
This is the only major negative factor
with Ripple, rest all are positives.
The GDAX policy currently is to not allow centralised cryptocurrencies,
it’s a possibility that the policy might change in the future
it’s possible that GDAX
changes it’s mind after looking at the good growth
and promising business model of Ripple.
Then, Ripple would see a really big jump in it’s price
it’s hard to even imagine
the kind of movement it might see.
it might quadruple overnight.
Ripple was priced at around $1 in December end (2017)
and at the beginning of January 2018
there was a rumour that
XRP would be listed on Coinbase
and on the basis of that rumour,
Ripple saw phenomenal growth
and reached around $4
solely on a rumour, and when
it would actually get listed, then how fast would it rise?
It would get positive statements from everyone.
Right now not all experts are saying positive things about it
then all would be
saying favourable things about it.
And it would
grow even faster then.
It would give great returns
if we would be invested before that news.
Ripple is a middle ground
between the old banking system
and the recently launched
Banking systems are based on conventional models
and cryptocurrencies are
based on their
totally new platform.
So it’s a middle ground between them
which is essentially the best of both worlds.
Ripple has removed most of the flaws of the banking system,
it has made transactions faster, safer
and more secure
has introduced lots of new security features
has added really good features with that.
Ripple is a very promising business model and
and is a based on a very promising technology.
Rest of the
cryptocurrencies are in some way
affecting businesses that run on old financial systems,
and are somewhat killing them
but Ripple is
raising Banking systems
to a more modern world
and is upgrading them
with its technology
and its platforms for
the Banking systems
to meet the demands of the current situations.
Business needs today are
really fast and Ripple’s speed
and it’s security features
are very important for the business world
and without Ripple the banking systems might
collapse in the next 5 years. Ripple or some other similar platform
or a parallel technology is mandatory.
The way scams and frauds
are being happening, they will
be reduced when blockchain tech would be implemented and when
Ripple’s tools will be implemented
and its usage will increase in the banking industry.