Worldcryptoboss Posted August 20, 2018 Share Posted August 20, 2018 It's crazy isn't it? These crazy fluctuations in XRP (and other cryptocurrencies) AS much as I, like many other people love the utility of XRP, and how it can change the world of finance, this isn't the biggest reason for our interest. It's about making money. Just like others, I invested and bought a few Zerps because I saw an opportunity to make money. Yes, Xrapid, Xcurrent and all these other technologies might change the banking and finance landscape as we know it, but truthfully, we saw an opportunity to cash in on the rising price of XRP. For those like me, let me let you in on a little secret: The price of XRP has almost NOTHING to do with it's utility. That's right. Even though there are a number of new ways in which the Ripple network is bringing innovation, none of these have or will have a major impact on the price of XRP. That isn't to say that they have NO effect on the prices, but to say that the major driving force of any past, current and future XRP prices is something simple. Supply and demand of the overall crypto market, especially Bitcoin That's it. How "hyped" or "dehyped" the overall crypto market is the single largest factor on the price of XRP. Like ALL other crytocurrencies, XRP's value is largely based on Bitcoin's fortunes. The price of Bitcoin, which is by far the largest cryptocurrency, is the biggest driving factor. Bitcoin goes up? In general, all the other coins rise in value. Bitcoin down? All the other currencies sink. Of course, this doesn't happen in a "straight line" - but when Bitcoin prices go up, this means that the "hype" for crypto, in general, increases. Which leads to more people looking at other, cheaper options, which means that there is a lot more room for growth and higher likelihood of larger price increases as investors look for a "cheaper" option. When Bitcoin prices go down, we tend to see the same trend - other crypto are hit even harder as investors who came in at the peak panic as they begin rapidly losing their investment as prices plunge, which has a ripple effect (haha). I like to compare the crypto market to gold, and other precious metals valuation Are gold and other precious metals useful? Sure. However, they sure aren't used as a regular, day to day basis for most people. Instead, gold has become a store of value. Gold's value increases simply because OTHER people want another store of value in case of issues with local currency, such as deflation. The price of gold is generally stable worldwide, similar to crypto. Despite the fact that the vast majority of the world's population have little utility for gold, and do not own any gold, the price of gold has risen significantly within the past 25 years - From $273 in 200 to $1664 in 2012. And although there have been some dips, the price of gold has increased steadily almost yearly What does this mean It means simply that you should be paying less attention (please note I didn't say NO attention) to the developments coming out of the Ripplesphere, and more attention to the sentiment and feeling on the ground of cryptocurrency, especially Bitcoin. Anyone agree/disagrees? XRPREAL, DreXRP, RedRocket and 3 others 4 1 1 Link to comment Share on other sites More sharing options...
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