If you think Bitcoin has had a torrid time of late then you would be right – but if you want to see a cryptocurrency that is taking a never-ending nosedive then look at the last two weeks for Ripple (XRP). All of this comes as no surprise but with the price continuing to fall and investors not jumping on board to take advantage of such a low price, there doesn’t seem to be a rally in sight.
A lot of hype caused Ripple to rise in anticipation of the annual Ripple event. The event however was a flop and saw the Ripple owner make the mistake of thinking his investors were ready to hear that most crypto would eventually be worth nothing – and then as predictable as you like, the bottom fell out and Ripple has dived.
Is the Statement True?
Technically, everything will at some point in the future will be worth nothing so the 99% statistic is actually a little generous. In a very technical sense, one day human existence will cease to be and anything that was once cherished by us will have zero value whatsoever. In a less literal sense, Brad Garlinghouse (Ripple CEO) is probably wrong as he seems to be anticipating a market where one cryptocurrency will rule out and all others will then become obsolete.
This however is complete fantasy, which isn’t surprising given Ripple’s current legal situation – it appears they have misread the crypto market yet again. As much as Ripple is a cryptocurrency, it is also owned by a company and therefore even if Ripple did win the day eventually, no monopolies commission in their right mind would let a single company have the universal rule of digital currency. This means that Ripple would be broken up or they would have to accept competition in the marketplace.
Understandably, Ripple management want to hype their currency and want to cement in investor’s minds that they have the winning coin. All they have actually done is attracted a lot of negative attention that is focused on the name Ripple and this has left investors jittery.
Will Ripple Recover?
One thing that is a bit unusual about this current dip in form for Ripple is that ordinarily investor confidence is okay with the currency. Its not exceptional but it is normally okay. Most Crypto traders know that Ripple doesn’t trade at high amounts and because of the sheer volume of XRP in circulation the value holds normally quite well around the 30c mark.
Of course, there are blips and sometimes it rises and sometimes it falls, but normally the confidence returns the price to around the 30c mark.
But there is a lot of uncertainty on the horizon for Ripple and 2020 will be a real big year in terms of them really cementing their place at the table.
I currently own a big pot of Ripple, but even as someone that wants the market to pick up, I want to also see Ripple start taking responsibility for their actions. For my investment to grow they need to stop treating investors like idiots and stop making silly statements about the Crypto market. It is disingenuous and unhelpful to growth – for a long time Ripple have acted as though they don’t need investment but truth be told, they will need it more than ever going forward especially if the class action lawsuit doesn’t go their way (and let me tell you, from the argument being presented it really looks like a headache for Ripple).