XRP Ripple: Why build a position now and how the value could develop

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ripple XRP-potential lead wolf for the next bull run?

in recent years Ripple XRP has repeatedly made headlines, but in the past week it has attracted a lot of attention. After the long-awaited victory over the US stock exchange supervisory authority Securities and Exchange Commission (SEC), retailers and investors expect XRP to lead the next bull run. In this article we have possible reasons why you as an investor should now build a position in XRP.

Some principles of finance

There are three basic principles that determine the value of an asset: supply and demand, market value increase and limited assets.

supply and demand are fundamental concepts of economics. If the demand for a asset is low, it has little value. With high demand, prices increase. The market value increase relates to the increase in assets or securities on a financial market, which is usually due to increased demand. Limited assets reflect the fact that the available resources or goods and services are not sufficient to meet all needs and wishes.

A look at Ripple (XRP)

If you have not yet dealt with XRP and Ripple, here are a few short facts. There is a limited stock of less than 100 billion coins. With every Ledger transaction, a small part of XRP is destroyed to confirm the transmission, which makes XRP a deflationary cryptocurrency. XRP can also be used to output other assets in the Ledger. The price of XRP is currently $ 0.79 per coin, which is considered a mockery.

banks and ripple (XRP) in the future

It is speculated that Ripple (XRP) will be used by banks in the future. However, this will not necessarily drive up the price. Ripple’s Software Odl (On Demand Liquidity) enables small banks and money transportation to reduce dependency on large banks and promote competition. Large banks like the Bank of America and Chase are likely to not use as many.

The role of privacy

privacy plays a crucial role on the way to a possible price of $ 1,000 for XRP. Ripple Labs has made it clear that XRP was never intended for public trade. Banks need privacy to handle their shops and award loans. Therefore, large banks will use private XRP Ledger instead of XRP ODL.

The importance of the liquidity providers

To postpone cash, large banks will use so -called institutional degrees Liquidity Providers (IGLPS). These private XRP Ledger keep various digital currencies and a credit on XRP. The IGLPs are necessary to handle transactions between different banks and serve to minimize the risk of opponent. Therefore, various private XRP Ledger are used as a bridge currency for bank transfers.

The Cascade Effect

The public range of XRP on the crypto bonds is limited because a considerable part has already been lost. If banks are ready to use XRP, the public supply will quickly decrease. This could lead to high demand and rising prices.

FAZIT

Ripple XRP caused a stir in the last week after it has won over the SEC. There are various factors that indicate that XRP could gain value in the future. The concept of limited means, the role of privacy and the use of institutional degrees Liquidity Providers could help XRP lead the next bull run. As an investor, you should keep an eye on these developments and build a position in XRP to benefit from possible future profits.