The crypto world is so caught up on making easy money they have forgotten why bitcoin and cryptocurrency was invented in the first place. For those of you that have forgot, let me remind you...
BUT FIRST...
Let's take a quick look at who owns Ripple and why investing in them is shooting yourself in the foot.
As you can see, xrp has had some big moves recently making a lot of people some "easy" money. And before you think I'm just bitter because I missed the train, I'll tell you now I'm not, I caught the Verge(XVG) train and am doing better than fine.
Ripple is the antithesis of bitcoin.
Ripple is run by a private company, its centralized, it's not a real currency, and 60% of the coins are owned by the creators. Who own Ripple? Oh just some of the most evil companies on Earth, BANKS. Do you really want to give MORE wealth to banks? Are you kidding me? Major players are bed with Ripple and in my opinion these corporations don't need anymore power. JP Morgan, Santander, American Express, Google, and believe me, the list goes on.
MORE INFO:
"Ripple is not an Open Blockchain. Individuals can’t get full access to the Ripple Network.
Unlike Bitcoin, Ethereum, Litecoin and 90% of all cryptocurrency blockchains, Ripple is a relatively closed blockchain. Through some effort, users can go download a wallet and transfer Ripple to it, but you have to create trust lines with other organizations in order to get access. In this way, you can’t just send money to whomever you want, they have to accept you as trustworthy before allowing transactions. 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. This is done through a process known as ‘issuance’, where a bank will create a transaction that adds the real world asset to the Ripple Blockchain. 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 because 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.
Because of this, Ripple is a blockchain for banks, primarily focused on B2B. Normal consumers are not supposed to interact with the system and have better alternatives available."
Source: http://hivergent.com/you-shouldnt-invest-in-ripple-and-not-because-its-a-scam/
A Quick Reminder Why Bitcoin was Invented in the First Place:
- People used to pay each other in gold and silver. Difficult to transport. Difficult to divide.
- Paper money was invented. A claim to gold in a bank vault. Easier to transport and divide.
- Banks gave out more paper money than they had gold in the vault. They ran “fractional reserves”. A real money maker. But every now and then, banks collapsed because of runs on the bank.
- Central banking was invented. Central banks would be lenders of last resort. Runs on the bank were thus mitigated by banks guaranteeing each other’s deposits through a central bank. The risk of a bank run was not lowered. Its frequency was diminished and its impact was increased. After all, banks remained basically insolvent in this fractional reserve scheme.
- Banks would still get in trouble. But now, if one bank got in sufficient trouble, they would all be in trouble at the same time. Governments would have to step in to save them.
- All ties between the financial system and gold were severed in 1971 when Nixon decided that the USD would no longer be exchangeable for a fixed amount of gold. This exacerbated the problem, because there was now effectively no limit anymore on the amount of paper money that banks could create.
- From this moment on, all money was created as credit. Money ceased to be supported by an asset. When you take out a loan, money is created and lent to you. Banks expect this freshly minted money to be returned to them with interest. Sure, banks need to keep adequate reserves. But these reserves basically consist of the same credit-based money. And reserves are much lower than the loans they make.
- This led to an explosion in the money supply. The Federal Reserve stopped reporting M3 in 2006. But the ECB currently reports a yearly increase in the supply of the euro of about 5%.
- This leads to a yearly increase in prices. The price increase is somewhat lower than the increase in the money supply. This is because of increased productivity. Society gets better at producing stuff cheaper all the time. So, in absence of money creation you would expect prices to drop every year. That they don’t is the effect of money creation.
- What remains is an inflation rate in the 2% range.Banks have discovered that they can siphon off all the productivity increase + 2% every year, without people complaining too much. They accomplish this currently by increasing the money supply by 5% per year, getting this money returned to them at an interest.
- Apart from this insidious tax on society, banks take society hostage every couple of years. In case of a financial crisis, banks need bailouts or the system will collapse.Apart from these problems, banks and governments are now striving to do away with cash. This would mean that no two free men would be able to exchange money without intermediation by a bank. If you believe that to transact with others is a fundamental right, this should scare you.
- The absence of sound money was at the root of the problem. We were force-fed paper money because there were no good alternatives. Gold and silver remain difficult to use.
- When it was tried to launch a private currency backed by precious metals (Liberty dollar), this initiative was shut down because it undermined the U.S. currency system. Apparently, a currency alternative could only thrive if “nobody” launched it and if they was no central point of failure.
- What was needed was a peer-to-peer electronic cash system. This was what Satoshi Nakamoto described in 2009. It was a response to all the problems described above. That is why he labeled the genesis block with the text: “03/Jan/2009 Chancellor on brink of second bailout for banks.”. Bitcoin was meant to be an alternative to our current financial system.
You should focus your time and energy to make a post about what people should buy, not what they should not buy! Do you know that saying' follow the money' ? If you jump in, in the right moment then any altcoin is the right one!
You must have missed the point. Fuck the banks. Invest in coins not owned by banks and evil corporations, that's the moral here. Profit is not my only motivation, unlike some...
Let's say that I'm missing the point here, but do you know that rich people are the ones that own the banks and evil corporations, and they are everywhere.! Do you think that they don't have btc or any other altcoin? Where the money are so are the banks and evil corporations!
Fuck the banks, I agree, but that's not the point!
By the way, trust me you don't know what is my motivation( and is not profit)!
Do you know what point have you missed?
Facts
I think banks have a lot to offer the wave of cryptocurrencies. By working with banks I think that the crypto world might change banks core operations to a more trusted establishment.
Ripples price has doubled in just a few days due to the money coming in from the South Korean market. Everything you've said is true however Ripple has been set up to eventually disappear like a fiat currency over time. Having no transaction fees and burning XRP from the pool each time a transaction is completed means that either there will be no Ripple eventually or they will have to create more which would completely discredit the Ripple blockchain.
I get why you don't like Ripple and I hate the banksters too but I think we should pump and dump the fucker, make profit, recycle it into worthy alt coins and hopefully discredit the Ripple name. Win-Win.
Just my 2c dude.
Welcome back buddy, it's been a while since I've seen you.
"Ripple has been set up to eventually disappear like a fiat currency over time." Not sure I follow this. All fiat currency around today is inflationary and Ripple designed XRP to be deflationary. There are transaction fees, the lowest being 0.00001XRP and yes some XRP is burned during each transaction. The burn rate however is nothing to be alarmed about, it would take thousands of years to burn through the XRP token supply so there will be no need to create more. XRP isn't a banks token, it's a token that they feel comfortable using. If bitcoin was as fast and cheap they could use that. Down the road when XRP is being used to move all sorts of assets currencies and securities between networks, banks won't be the only ones using it.
I didn't like banks for a while either until I figured out what about the monetary system I actually didn't like. Debt-based currency and fractional reserve lending. Take those two things away from banks and they become safe places to store your wealth and take out loans.
I love your post, finally some common sense in this crazy market. I think with altcoins we entered the market like the .com bubble where everything that added .com to their name rocketed enormously.
Ripple is rocketing because it is a cryptocurrency, but it is missing all the interesting factors of a cryptocurrency like decentralization, permission less, ect.
I think everyone should buy some bitcoin and learn about the BITCOIN tech before going in any alt. Bitcoin is the real technology, many alts nowadays are so far from that that I think they shouldn't even be listed on the same platforms.
Since Ripple is not decentralized it is hackable and every penny the price goes up so does the size of the honeypot. I can't wait till it gets hacked or an exit scam and the world will see how important decentralization is!
This is a revolution because of the decentralization and not because it is digital money!
Very true. It's so dotcom and I'm afraid it will delay real blockchain usage. It's becoming linked to some universal gold digging mania. Such a shame...
Maybe the panic money will flow into BTC since I don't know how hard / easy it is to dump your Ripple directly for fiat. It might be good that the world can see how important decentralization is, that way we get rid of hundreds of shit coins.
In Kraken you can trade Ripple for fiat. But indeed also expect a BTC uplift soon. That or the mother of all corrections :)
I think there will be a lot of people who flee to decentralized currencies after getting screwed by Ripple. Traders think they're smart because they're winning now, but at any point the couple guys who own as much of this sh*tcoin as the current circulating supply could dump them and make a killing. Guess who will be holding the bag?
I would think the whole market is not making sense anymore. Probably that's the bigger issue behind this Ripple craze
True. But it makes sense when you realise central banks are buying crypto now to add to their books. https://www.coindesk.com/2018-year-central-banks-begin-buying-cryptocurrency/amp/&ved=0ahUKEwjs67mSr77YAhVFBcAKHTC6DgYQFggcMAA&usg=AOvVaw2lTRiEz75t2C2mBr7HovO7&cf=1
Would be strange to my opinion. Why would they buy something at inflated prices in a clear mania ? Most of the coins have no real application and probably will never have.
But ok everything is possible. Maybe bitcoin could make sense in some way
You can’t put a value on the coins so you can’t call the prices inflated
Why can't we put a value on it ? It's a technology to increase efficiency/privacy. That could be valued. Plus we can compare to companies on stock market.
Explain how it can be valued like stocks. They’re completely different
For me market value is the total market cap. Intrinsic value is off course something different.
But if we compare market cap of a crypto to the market value of a company it is trying to disrupt it should give us an indication no ?
Like imagine if market cap of steem would be higher than facebook. Would be strange in current times no ?
For me it's the case in the Ripple story. Maybe there is some potential but way to early to be valued like a blue chip
stocks are build on debts... this is also all virtual money... so better have it virtual with technology, security and independence not just simple decimal formats on a e-banking html site... the banks have to much work, let us buy real cryptocurrency and relieve the banks.. ;-)
thanks for the information
ripple is centeralized and that makes it untrustful
agreed. i dont like what's happening. market cap is getting too close to btc for tech that is centralized.
Thanks for the long long post. Great work!
Investing is investing: you do it to get profits and XRP has been VERY PROFITABLE. I think banks will always be there, but blockchain will change everything, with Ripple or without it.
I agree. A man can either be an investor/merchant, or a revolutionary. For some odd reason, many so-called "investors" in the cryptocurrency sphere delude themselves into being some sort of revolutionary, a la Che Guevara, "fighting" against the "evil" banks and the moneyed interests from the safety of their laptops. Investors follow the money to gain more money; revolutionaries tend to live in huts and cause chaos. The two spheres rarely interact, and if they do, it is by the will of the moneyed interest perceiving profit from the chaos created by the revolutionaries. Revolutionaries rarely benefit from the chaos they cause, unless they manage to kill-off much of the population they claim to be serving.
Ripple is doing something impossible at the moment! it really should have reached 2$ to 3$ by the end of 2018 and we are at start of 2018 and its almost 4$!
At the moment the price is pushed more by the excitement of people who believe that the token will be redeemed by banks SO GOOD LUCK stoping that
Ripple needs to die. Fuck the banks. They are obsolete now.
Nobody needs to stop it, the market will. Things can hype, but finally only the real good tech will survive. Check the chart of Ripple and zoom out, a 95% crash happened before. Beside the risk for a crash the fact that it is centralized brings in many risks too.
I liked the part, about banks being evil :)
Wow, I was almost investing in ripple like 2days ago but was being indecisive. Thank God I was
This post has received a 6.07 % upvote from @booster thanks to: @thedonfreeman.
Why don't @booster boost me? ? :)
Is ripple really the antithesis of bitcoin? Bitcoin is monopolized now. There can easily be a 51% attack at any point now. I would argue that bitcoin is one of the most centralized coins out there and has become the antithesis of itself. It is slow, expensive and you could say at this point that more banks and governments hold more bitcoin than the average joe. Good article but I couldn't disagree more.
I 100% know, that the banks will use Ripple just to buy cheap Bitcoin... And it's sad, that so many people, that are new in crypto world – jumped in Ripple ship... because the name of this ship is Titanic...
Totally agree. The BTC dominance % is going down fast due to Ripple which shouldn’t even be listed on Coinmarketcap in the first place. Banks have all the money they want to play with XRP tokens so if Ripple becomes #1 won’t be a surprise to me.
My bet is that everyone is dumping BTC to go fomo into XRP, on the other hand smart money are buying low...
Maybe they pump up Ripple and crash it together with the regular markets so that crypto's can't function as a store of value in the next crisis.
Thank you for good idea.
Here are 5 Real Reasons Why You Should Purchase Ripple (XRP).
Read this article and compare...
https://steemit.com/ripple/@lloydbon2607/5-real-reasons-why-you-should-purchase-ripple-xrp
I totally understand what your saying but if you cant beat them be them
Great article. People stay far away from ripple!!
yes! Don't support anything ripple said. they have been in crypto for long now and yet they have the same system when they first start this platform.
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