Although it hasn’t been getting as much attention as bitcoin and Ethereum, ripple too has a very bright future. In fact, it may turn out to be one of the most revolutionary cryptocurrencies at the rate it’s going. For the ripple forecasts, I favour the predictions that see it growing exponentially in 2018 to around $2. Considering its current market price of $0.28, this could be over a 600% increase in value in just a year.
Why is ripple set to gain value?
Ripple (XRP) have found a niche among other cryptocurrencies, where they target the banking industry over individuals. So far, more than 100 banks have signed on to Ripple’s blockchain network, and they intend to use it should blockchain technology become embraced. So, why did the banks go for ripple instead of bitcoin or Ethereum? It’s considered the most scalable and fastest among cryptocurrencies.
For example, bitcoin can only confirm 7 transactions in a second, and the bitcoin community has been unable to figure out a scaling solution. Meanwhile, Ripple can process up to 1,500 transactions in a second, which is a lot more than most other cryptocurrencies. Indeed, VISA can handle more, about 2,000 transactions per second, but Ripple uses blockchain. Therefore, there are other added benefits, most important security. Considering banks in the US alone lose about $11 billion a year in credit card fraud, the compromise would seem reasonable.
Besides the adoption of Ripple by banking and financial institutions, it is already among the most popular cryptocurrencies and in the top 5 according to market capitalization. Considering that it is still so relatively cheap, that makes it all the more attractive to investors who may be intimidated by bitcoin’s huge price tag. Investors like Michael Arrington have also just announced the creation of a hedge fund XRP Capital, which will be dominated by Ripple worth $100 million. The addition of such notable investors adds more credibility to the positive Ripple forecasts.
Should you invest for the 2018 ripple forecast?
Ripple is not like bitcoin, as it appeals to a different kind of investor. For example, in the past month, bitcoin has appreciated by almost 80% from just above $6,000 to almost $11,000. Meanwhile, Ripple has appreciated by around 50% from 0.18355 to a high of 0.28072. Clearly, bitcoin has a faster rate of growth than Ripple, and this may continue through 2018. However, over the long term, Ripple forecasts may come true, which is why a $2 prediction for 2018 seems plausible.
More optimistic Ripple forecasts predict a price of even $5, but that is too optimistic. You must remember that the main use case for Ripple, as a system for global payments among banks, it may take some time. Therefore, Ripple is more suited to the long-term investor than a speculator interested in quick profits. Besides, enthusiasts are sceptical of Ripple’s use and control by banks, when they believe blockchain was meant to be decentralized and away from established systems of finance.