A recent article caught my attention, suggesting that the price of Ripple’s native cryptocurrency, XRP, could reach an astronomical $10,000. The article leans on the utility XRP supposedly offers through RippleNet technology, positioning itself as a replacement for the SWIFT system.
To set the stage, it’s crucial to acknowledge the current state of XRP. As of now, XRP is trading at $0.63, and the total supply is capped at 100 billion. In order for XRP to reach $10,000, the market capitalization would need to soar to an unfathomable $100 trillion. This is a gargantuan leap, especially when considering that the entire cryptocurrency market cap at the time of writing is hovering around $2 trillion.
The article hinges on the idea that XRP’s price surge to $10,000 is contingent on RippleNet successfully replacing the SWIFT system. The SWIFT network facilitates transactions totaling “hundreds of trillions worldwide,” according to the author. However, such a claim oversimplifies the intricacies of global financial systems. The adoption of RippleNet does not guarantee a wholesale abandonment of the existing SWIFT infrastructure, which has a well-established global presence.
The article underscores the advantage of XRP’s real-time settlement using blockchain technology. While this is a notable feature, it’s important to recognize that the cryptocurrency space is dynamic, and many projects, including Bitcoin and Ethereum, are actively working on scalability and efficiency improvements. Additionally, comparing XRP to SWIFT, Bitcoin, and Ethereum might be misleading, as they serve different purposes and operate on distinct technological frameworks.
The article draws parallels between the views of the XRP community figure, Edward Farina, and Ripple CEO Brad Garlinghouse. Garlinghouse has indeed expressed optimism about Ripple’s progress, but optimism doesn’t necessarily translate to a specific price prediction. Furthermore, the onboarding of 100 banks, some being SWIFT-enabled, does not guarantee a meteoric rise in XRP’s value.
Analogizing XRP to established stocks like Microsoft and Apple, as mentioned by a pro-XRP Wall Street financial analyst, Linda Jones, oversimplifies the unique characteristics of cryptocurrencies. Stocks represent ownership in a company, entitling shareholders to dividends and voting rights. Cryptocurrencies, on the other hand, are fundamentally different and do not inherently generate income for holders.
PoolPays has announced the development of a decentralized liquidity pool aimed at the gaming industry…
Cryptocurrency gives you direct ownership of digital assets without relying on banks or intermediaries. That…
In a space dominated by roadmaps, tokenomics, and optimization narratives, Lumen Frankenstein feels almost out…
PIKZ has announced the launch of $PIKZ, the native utility token that will power its…
For decades, Western Union has been one of the most recognized names in cross-border payments.…
As the calendar flips and January arrives, the air fills with promises: a new start,…