Ripple has growth potential, but the cryptocurrency is unable to take off because of an ongoing lawsuit filed by the SEC in late 2020.

Ripple (CRYPTO:XRP) is a blockchain-based digital payment network and protocol with a cryptocurrency that uses the ticker symbol XRP. It’s been around since 2012 and was released by co-founders Chris Larsen and Jed McCaleb. In a nutshell, the main process is a payment settlement asset exchange and remittance system, very much like the SWIFT system (money and security transfers).

As of this writing, the crypto trades at an absurdly cheap price of US$0.759396. However, don’t immediately part ways with your money, unless you know the pros and red flags attached to the cryptocurrency.

Ripple has growth potential, but the cryptocurrency is unable to take off because of an ongoing lawsuit filed by the SEC in late 2020.
Ripple has growth potential, but the cryptocurrency is unable to take off because of an ongoing lawsuit filed by the SEC in late 2020.

Ripple (CRYPTO:XRP) is a blockchain-based digital payment network and protocol with a cryptocurrency that uses the ticker symbol XRP. It’s been around since 2012 and was released by co-founders Chris Larsen and Jed McCaleb. In a nutshell, the main process is a payment settlement asset exchange and remittance system, very much like the SWIFT system (money and security transfers).

As of this writing, the crypto trades at an absurdly cheap price of US$0.759396. However, don’t immediately part ways with your money, unless you know the pros and red flags attached to the cryptocurrency.

Defined purpose

People familiar with the cryptocurrency universe knows that XRP is one of the 10 biggest cryptocurrencies. Ripple has visible growth potentials primarily because it has a defined purpose. It’s unique in that the crypto is for use by financial institutions, and payment services can use XRP to transfer money.

Moreover, the transfer doesn’t require pre-funding of the accounts in other countries or subject to exorbitant foreign exchange fees. Ripple is a direct competitor to SWIFT. Most financial institutions use the latter for international money transfers.

Numerous partnerships

Ripple has more than 300 partners, mostly financial companies, in over 40 countries. Among the prominent names are American ExpressBank of America, and Banco Santander. The crypto’s global payments network, RippleNet, facilitates cross-border transactions. Currently, however, most Ripple partners avoid using XRP because of its volatility.

Market observers say it will take years for Ripple to overtake its chief rival or biggest competitor. SWIFT has approximately 11,000 partners, and the system has been around since the 1970s. Somehow, it’s like comparing Bitcoin to gold. The advantages that could help XRP catch up is the speed and low cost per transaction.

The average transaction time of five seconds indicates XRP’s efficiency in transferring money. Likewise, the standard transaction cost of 0.00001 XRP is a very small fraction of the crypto’s current price.