Ripple Co-founder Beats Google founder in Wealth, Is it safe to invest in Ripple?

Nishanth Shetty

January 5, 2018 1:48 pm

Ripple Co-founder Beats Google founder in Wealth, Is it safe to invest in Ripple? | Coindelite News
69299 Total Views

Ripple News

Chris Larsen, Co-founder and executive chairman of Ripple, who personally owns  5.19 billion XRP and has 17 percent stake in the company,

Through XRP reaching the high of $3.84 on Thursday, Larsen’s holdings are worth about $59.9 billion, made him become richer now.

XRP coin reached 35,500 percent to $2.30 last year, and through raising it has also beaten Ethereum. The company owns 61.3 billion of the 100 billion XRP coins in existence, through providing Ripple a market value of nearly $235.4 billion on Thursday.

The San Francisco-based start-up is using blockchain technology to develop a payments platform which is being used by 100 financial institutions.

Anyhow, Larsen is also one of the persons who has become billionaires due to the cryptocurrency’s recent success.

Jed McCaleb, who co-founded Ripple with Larsen but left the company in 2013 and later founded Stellar, owns the rights to 5.3 billion XRP — worth more than $20.3 billion. McCaleb also owns one billion XLM (Stellar), which are worth more than $800 million.

Is Ripple safe to invest?

There are some facts about Ripple, which most of the people do not know or may not understand.

1) Ripple is not a real crypto-currency:
As we know bitcoin has a decentralized block-chain ledger, on which its millions of participants organize and save a record of their transactions. Bitcoin also has cryptographic hashing, so that traders can use a system of public and private keys to safeguarding their identities. Ripple is centralized which is opposite of what Bitcoin is.

Bitcoin’s transactions are approved by miners, a supportive and incentivized community which keeps everything running smoothly. Relevantly, it also has a fixed finite supply. These characteristics have made it easy to transact safely, store value, and even speculate.

But, Ripple wasn’t designed to be a coin or a regular cryptocurrency by the standard definition. While bitcoin and comparable cryptocurrencies give the value of the coin equal priority with network security, speed, and applicability, Ripple does away with the idea of XRP as any kind of investment asset and instead focuses on making the blockchain as strong as possible. This is primarily for the good of the institutional entities that Ripple serves, like American Express or Santander Bank. To achieve this goal, the Ripple Foundation created XRP but tweaked each traditional component of cryptocurrency into an almost unrecognizable state.

2) Ripple cannot be mined:
Ripple has no mining or miners whatsoever. Instead, transactions are powered through a “centralized” blockchain to make it more reliable and fast. Mining is a core tenet of most other cryptocurrencies, and each uses their own system to determine how much power the miners have. Some, like bitcoin, use Proof-of-Work, but there is also Proof-of-Stake and Proof-of-Importance.

In cryptocurrency, miners are incentivized to process network transactions with the currency itself, but this has created some issues that Ripple deems untenable. In a solution built for big banks, there should be no separate group with its own special motivations for running the network.

While this idea has helped other cryptocurrencies to remain decentralized, it has also slowed them down: a problem Ripple cannot afford. This lack of mining affects other aspects of Ripple as well, taking it further from the standard.

Besides processing transactions, miners are also rewarded with cryptocurrency. This is essentially how it’s created. Ripple’s exclusion of miners naturally throws a wrench into the machinery in this regard.

3) Ripple is not finite:
Ripple can be “printed” on-demand, which makes it much more reliable for payment processing, money exchange, and other institutional activities. When it’s used, it’s simply destroyed.

The Ripple Foundation already created the 100 billion XRP currently in circulation, giving it a stable, non-volatile character perfect for its biggest clients. However, this also removes one of the biggest factors in any true cryptocurrency: the ability to accumulate and store the value as only a deflationary asset can.

4) Ripple a Centralized Blockchain:
Ripple does have a wallet, but getting access to the blockchain is tough. Retail participants aren’t supposed to have access because it introduces risky, strange elements into an otherwise sterile environment. The Ripple blockchain isn’t open like those of other cryptocurrencies. XRP can be safely stored and kept and uses cryptography to protect participants, but the nodes it’s protecting aren’t individuals but “trusted” operators registered in the Ripple network.

So, finally, much like the many questions circling bitcoin cash, even the founders of Ripple recommend not using their creation as a currency for speculation because it isn’t one. Ripple resembles a FinTech platform more than anything else and has simply combined the best elements of fiat money and blockchain cryptocurrency.

Not a “true” cryptocurrency by the standard definition, Ripple may be the dividing line that separates two distinct products to emerge from the cryptocurrency revolution: assets and solutions. While assets can serve as investments placing faith in a decentralized community and the deflationary properties of mining, solutions will dispense with the speculation and instead create platforms that are “technically” a cryptocurrency but not traditionally viewed as such.

The price of Ripple is increasing that does not mean it is a good thing for long-term investment. The investors are requested to analyze all the facts and figures and invest wisely.


You could certainly see your skills in the work you write. The sector hopes for more passionate writers such as you who aren’t afraid to say how they believe. Always follow your heart.

Hi there! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a extraordinary job!

Acheter Belgique [url=]cialis generic[/url] Synthroid Without A Script Medikament Cialis 10 Mg