Fren said he bought a pile of these cryptos,
What are your thoughts?
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (21)
sorted by:
XRP highlights its intended role as a fast, efficient, and cost-effective infrastructure for facilitating cross-border payments, analogous to how railroads facilitate the movement of goods.
Here's a breakdown of why this analogy is used and how XRP fulfills this role:
Speed and efficiency: XRP transactions are known for their rapid settlement times, typically completing in 3-5 seconds, significantly faster than traditional international wire transfers which can take days. This speed and efficiency make it a compelling solution for real-time global payments and transactions where quick settlement is crucial.
Cost-effectiveness: XRP transactions incur extremely low fees, often a fraction of a cent. This makes it a more affordable alternative compared to traditional methods that involve multiple intermediary banks and associated fees. Bridge currency: XRP acts as a "bridge currency" that facilitates the exchange between different fiat currencies or even other cryptocurrencies. This eliminates the need for financial institutions to pre-fund accounts in various currencies, freeing up capital and reducing costs.
Scalability: The XRP Ledger is designed to handle high transaction volumes, with a processing capacity of 1,500 transactions per second. This scalability makes it a viable solution for the increasing demand for cross-border payments and financial services.
Institutional Adoption: Ripple, the company behind XRP, focuses on collaborating with financial institutions and payment providers, according to Cointelegraph, and has formed partnerships with major players in the financial sector, including Santander, American Express, and MoneyGram. This indicates a growing adoption of XRP in enterprise payment solutions.
SWIFT alternative/complement: XRP is viewed as a potential alternative or complement to the existing SWIFT network, which is the current standard for international financial messaging. XRP offers advantages in speed and cost over SWIFT, although SWIFT has a significantly larger network and regulatory compliance history.
What is stopping another from coming into use?
Because for the past decade XRP has been hard at work behind the scene setting up the "railroads" with countries all over the world and throughout Southeast Asia and China. All the foundations have been set, and with the help of other utility coins like Hbar and XLM which will be support for security and efficiency. It's a lot and you need to do own research I can't answer all your questions here and can only give you a general idea. Right now the price of XRP and other utility coins are just a reflection of retail. Wait til they pass regulatory laws to make it "safe (avoid lawsuits) for institutions to buy and they'll be loading that up. World runs through digital money flow and ledger makes it secure and prevents stealing, laundering and corruption, such as the case with USAID where we couldn't track every penny.