Ripple, the misinformation of the cryptoworld and the truth

Ripple, the misinformation of the Cryptoworld and the 'truth'

 

It's 6 a.m. in most parts of Europe as I'm starting this blog. I want to keep it short and simple for people to read. It's time to 'tell the truth' about Ripple from my perspective. Probably going to be a long one…

Ripple is - by far - the greatest thing that is happening to the cryptomarket at this moment. However, the misplaced hate and false expectations are keeping it far undervalued at this point in time. Why?

Well, let’s first look at the arguments from the 'other side' that seems to be so important to a few people in the cryptoworld:

• Ripple is centralized, this is not what Satoshi wants.
• Ripple holds all coins and power and they can sell at any moment to dump the price and get rich
• Ripple is working with banks, I hate banks - the reason I bought bitcoins is because I hate banks
• Ripple is just trying to sell his ledger for revenue, it doesn’t care about XRP
• No bank is using or willing to use XRP and it will fail

Let’s just start to debunk these emotional claims by random people on the internet in a fast manner

First wrong statement: 'Ripple is Centralized' 

The whole reason why Ripple is seen as 'centralized' is because of the fact they don’t have as many nodes as bitcoin, but what you don’t understand is that Ripple actually is building towards quality nodes. No more waiting for a wooden cabin in the jungle of China where a 1000's asci’s mining rig is trying to survive the conditions that is going to be responsible for your transaction, but actual nodes that are valid, strong, fail proof and set up correctly. If you want to argue which one is better: As prices have been skyrocketing for bitcoin the last few days, exchanges went black, transactions took hours to complete. People complained about the slow speed of the TX and the fact they had no place to go and complain about 'service'. Look at Ethereum, a crypto kitten game just ruined the whole Ethereum transaction space as people had to wait over 24 hours to get a transaction through! And Ripple? Not a single problem, transactions are the fastest and it can carry a huge volume. Ready for the next 100 years, who has more survivability? Ripple, Bitcoin or Ethereum? Ripple is on track to become the most decentralised stable currency, which is something you should support if you like crypto and you want it to stay.

Second false statement: 'Ripple holds all the coins and power and they can sell at any moment to dump the price and get rich'

Sure, that’s why they escrowed 55 billion today. Secondly, the 55 billion in escrow with releasing 1 billion per month is mainly made available for banks and financial institutions to purchase. They are only releasing what they sell, and the average sales have been 300 million the last 12 months so in theory this escrow lock up for 55 months could very well be extended to 70-80 months. If you think banks will just buy it from Escrow and sell it on the exchanges, think again. You honestly think a bank would set up such operation as it would buy XRP to use on transactions? And if people are buying it to dump on exchanges, what do they gain? If they by a significant amount of volume, they would end up in red numbers as they would have to sell it vs buy orders or put up a sell wall that lasts for weeks? What is the purpose of that? They don’t buy XRP directly from Ripple to make 3-4% profit with it - risking to accidentally drop the price lower, it makes no sense! And no, this is not like an ICO where you get 50% discount if you buy it from Ripple.

Third wrong statement: Ripple is working with banks, I hate banks - the reason I bought bitcoins is because I hate banks

Ok, apparently, you've never tried to buy a house or build a business from scratch. You will need a regulated organisation where you can get a legal justification for a loan, mortgage or investment while being protected by a government. But more important, look at what Ripple is doing to banks? They are finally giving you a low fee transaction rate for cross border payments, taking away the fact that banks can speculate with your money freely on the markets while your money is 'in transfer' taking away their gains while giving you 0% interest rate - this is going to turn into a fair market for everyone. Why hate banks if we need them? where do you want to store your items / get insurance / get help when you need it? You think the telegram channel or Facebook group you are in is going to lend you whatever you need when you need it trusting you to give it back?

Ripple is just trying to sell his ledger for revenue, it doesn’t care about XRP

Let’s stop you here. Ripple does care a lot about revenue, even better: they want it to be higher valued so they can get more big banks to move more big volume. And they only sell Ripplenet for the revenue they get?
Let me explain one thing fair and square, xRapid was - as announced - in Alpha stage of testing. Alpha stage was conducted by a few customers - one of them is Cuallix - and is running at its end (final stage). I don't know what your perspective is on Alpha testing, but you can’t just 'jump in' at the final stage of the project (think of all the things that needs to be set up for you to participate) with a bank. It's like playing a game for the first time trying out the hardest game mode, it doesn’t help Ripple as they have already covered those stages in the process. So, what can they do if they want to be first on the list when XRP becomes available for them to use? Get on Ripplenet, that product is finished and can run XRP transactions when the xRapid testing is complete. Maybe they can even partake in the beta testing, though I think the beta testing will be a short one as they are covering a lot on Alpha.

So where does that leave us? Patience is a virtue and this will (hopefully) be paid off.

No bank is using or willing to use XRP and it will fail

Just because Ripple is swamped by NDA's - deals they can't talk about - would implicate that there is a massive demand for XRP by banks. If you think the statements made by coins such as IOTA and Stellar would be significant at all, it would have been made public on both sides with the same information. Unfortunately, Stellar's news was 'debunked' shortly after publishing, with IBM saying it was regarding a testcase and that the usage of Stellar was temporary and probably for a short duration - and IOTA having issues with their claim and partnership agreement with Microsoft - Ripple was not called back to fix their 'news' with banks. This means that Ripple shares their news coordinated with the companies involved, this means Ripple has NDA's it had to protect and couldn't risk sharing a rumour up front to lift the price up. Maybe it will get you thinking on the rumours spread by crypto's itself to pump up their price and know that these rumours often are not entirely true. Instead of people being 'mad' at these currencies for misguiding investors to buy their coins, they get mad at Ripple for 'not announcing or confirming rumours’ more often.

Conclusion

If you can’t understand the benefits between banks and crypto, the acceptance it will bring to the world if people are aware that they are using crypto - this will open up paths beyond your imagination. We all want a brighter future for crypto, if you actively 'fud' ripple you are basically killing your own profits on your other coins. Accept that these guys will move on with or without you, their coin will gain value over time as they are being picked up by banks and used in the world.

I'm just sharing my opinion, if I made any false claims please feel free to comment.

I'm out!
Mr.H