Ad

Ripple Price: Tip of the Iceberg for Cryptocurrencies

By:
on Sep 12, 2017
Updated: Oct 11, 2019
Listen

The Ripple price moved in and out of positive territory in the wake of bullish comments from the company’s CEO Brad Garlinghouse on what remains a nascent cryptocurrency market. Under Garlinghouse’s leadership, Ripple’s market cap has soared from USD 250 million at the start of the year to approximately USD 8.4 billion today.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

According to Garlinghouse, a Yahoo alum, it remains early innings for cryptocurrencies. In fact, he says the “world has barely begun to understand cryptocurrencies,” comparing the USD 75 billion bitcoin market cap (approximately) to the value of gold supply, which stands at about USD 9 trillion.

“I’m voting with my feet and pocketbook on the future increased value of cryptocurrencies. I’m not a blanket bull on all digital assets. I don’t know where the price of these digital assets [is] going in the short-term, but over the long arc of time I’m very bullish,” says Garlinghouse.

The similarities are based on the “stored value basis.” Gold’s USD 9 trillion value is not tied to “future discounted cash flows,” he says. Rather it is a stored value because of the uses for the precious metal, such as jewelry for instance.

Ripple has taken an enterprise approach to cryptocurrencies, targeting customers like banks with its payments software. That’s where Garlinghouse observed the most immediate opportunity, leaving the consumer side largely untapped.

Meanwhile he says that Ripple is about “enabling the internet of value,” which if successful lends itself to “secondary and tertiary implications” that he says have yet to be understood, even by Ripple.

He goes on to observe parallels between the dot-com era of the late 90s to today’s environment, pointing to blockchain technology as a “transformational platform” that will influence far more industries than are even aware of it. The blockchain is in fact changing the way that payments occur, which is where XPR specializes.

The enterprise opportunity alone is vast amid a traditional financial system that remains dependent on an antiquated form of money transfers. That’s where Ripple comes in, selling software both to banks and digital entities. According to Garlinghouse, there’s a room for both fiat currencies and digital assets to coexist.  

While Ripple an early mover with its ICO, there could be another type of offering on the horizon – an initial public offering. Garlinghouse says that while that’s not in the near-term plan an IPO could be in the cards for the future. 

For further information on how to buy and trade Ripple, see our comprehensive Ripple guide. 

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
XRP Crypto