❔Is Ripple the cryptocurrency or not?
Ripple had the second-largest market cap out of any cryptocurrency at the end of 2017, and it's currently in third place (behind Ethereum and Bitcoin). Last week Riplle announced a partnership with MoneyGram. But still many market players (including Charley Lee, Litecoin’s founder) remain skeptical about this currency.Why?🔽
Crypto community evaluate new currencies by several factors; one of these factors is decentralization. And Ripple doesn’t meet this requirement: it’s not being mined by anyone. 100 billion XPR were created at the start of the project, and more than 90% are owned by Ripple Labs. That’s an obvious reason to worry: the company is able to manipulate the rate.
The other difference of Ripple is a non-traditional blockhain transaction system. It’s based on the chain of mediators - so-called “gateways”. Some of these gateways are Ripple’s partners, some of them are private individuals, who managed to get the certification. The transactions are provided by exchange (and you can exchange not only money, but some intangible assets as well). With Ripple’s transactions you can exchange dollar to euro, euro to gold and gold – to a ride with Uber. But all this process is under control of the company – that makes Ripple rather a payment system, than a cryptocurrency. And this payment system has all the preconditions to become another monopoly…
🤔And do you trust Ripple?
