The year 2023 is proving to be a good year for cryptocurrencies so far. Over the past 3 weeks, most cryptocurrencies have risen by an average of 20%. XRP has notably been among the best performers, gaining as much as 30% year-to-date. Can XRP Surpass Its Previous All-Time High This Year? Can XRP reach $3 in 2023? We analyze in this forecast XRP.
What is Ripple Company?
Ripple is a San Francisco-based FinTech company behind the global payment platform RippleNet. They basically created the XRP ledger blockchain with its native XRP token. In fact, the Ripple company was born way back in 2004, even before cryptocurrencies were invented. They were trying to create an internet of value and make their own money, and then RipplePay was created. Their network was small and the software was centralized. This is why later in 2012, RipplePay merged with another company called Open Coin, and together they formed what is now known as Ripple.
What puts Ripple Company ahead of its peers?
Ripple is a project that allows users to send, receive, hold and move currencies across borders quickly and reliably. Our current system, which relies on banks and payment gateways, is slow, fragmented and expensive. The Ripple company can settle transactions in 3-5 seconds from anywhere in the world. It is actually much faster than Bitcoin and Ethereum!
Additionally, the infrastructure is highly scalable and can handle over 1,500 transactions per second. You may be wondering now, how is all of this possible? Well, RippleNet uses the open source XRP blockchain to track, process and secure all transactions. But unlike Bitcoin, XRP does not use proof of work and does not have the concept of mining. This means that the energy consumption of the blockchain is minimal and keeps transaction fees low. XRP transactions are handled by an independent community of validation nodes who maintain the transaction network and protocol.
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Another plus for Ripple is that they are AML compliant, with fraud detection, sanctions screening and regulatory reporting in place.
What is XRP token?
Now let’s talk more about the XRP token. It is the digital asset on the XRP ledger, providing on-demand liquidity to financial service providers. It also acts as a bridge currency to facilitate cross-border transactions. The transaction fee of XRP is 0.00001 XRP or 10 drops, which at current prices is less than 1 cent per transaction. With XRP, payment service providers can reach smaller markets, benefit from faster payments and reduce exchange costs.
XRP Ledger is open-source and maintained by an independent, global community, and Ripple is an active member.
Is XRP Centralized?
Now let’s talk about the Ripple controversy. Is XRP Token REALLY Centralized? Well, there are many arguments on both sides.
When Ripple’s protocol is released, Ripple Labs has no control over it. Validators run the code themselves. This is quite similar to the bitcoin core development team, which maintains the bitcoin protocol. On the other hand, Ripple has an influence on the protocol as it maintains it. So if Ripple decides to create more coins, it can do it successfully. Ripple is like a central bank for RippleNet. But if Ripple ceases to exist, the validators can still manage the network themselves. But the products that Ripple offers to third parties are not open-source and are maintained only by RippleLabs.
Also, unlike Bitcoin which is resistant to censorship, Ripple is compliant with AMLA and other reporting requirements. This raises the question of decentralization and automation of decision making.
What is the history of Ripple and the SEC case?
In December 2020, the SEC sued Ripple with a lawsuit alleging the sale of securities without proper licence . Of course, this claim is highly questionable. First, cryptocurrencies have never been considered a security and are inherently unregulated. Secondly, there are still no clear rules or details about cryptocurrencies. To rule out that Ripple was trading an unregistered stock is simply absurd.
XRP price quickly took a toll on the worst and fell to $0.18 after the news broke. On the other hand, Block.one, the company behind EOS, had the EXACT same allegations with the SEC, and they managed to settle in 1 year . Currently, there are many speculations that the Ripple company will do the same.
There are many exchanges that sell XRP token. Considering the largest, here is a list that CryptoTicker recommends:
If you trade CFDs, eToro is a good alternative to buying the actual tokens and trading the price differences instead of worrying about the custody and security of the cryptocurrencies.
XRP Prediction: Can XRP Reach $3 in 2023?
So far the year 2023 looks promising for the cryptocurrency market. If this continues to be true throughout the year, the price of XRP should surely rise along with the cryptocurrency market. Furthermore, if the SEC lawsuit is settled or even won, XRP prices are expected to rise, reaching the previous ATH and even surpassing it towards $3.
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