Is this the beginning of the dawn of the digital economy system that would render federal banks across the world, useless? The inception of Bitcoin, not only gave the cryptocurrency a new face but also the power to compete against all the existing currencies in the world. With each day, new fiat currencies are surfacing up ensuring a bright future for cryptocurrencies.
After settling within a range of $0.15-$0.25 for the past six months, the cryptocurrency Ripple grew over 141 percent in the recent three trading sessions till December 13, 2017. The digital currency amounted to $0.58 on December 14 from $0.24, according to the price charts presented by coindesk.com. In December itself, other cryptocurrencies like IOTA and Litecoin have also soared over 100% than their existing price.
The sudden hike in the price of Ripple helped it to overtake Litecoin in regards to market capitalization. Currently, Ripple is the fourth biggest cryptocurrency after Bitcoin, Ethereum and Bitcoin Cash. Ripple has a market value of around $22 billion, whereas Bitcoin, Ethereum and Bitcoin Cash have a market cap of $279 billion, $72 billion and $30 billion, sequentially.
Bitcoin, Ethereum, and Litecoin have risen over 68 percent, 71 percent, and 205 percent, individually, in December 2017 so far.
Jed McCaleb founded ripple in 2012. According to a report by Deutsche Bank Wealth Management, the principle of Ripple is the verification of debentures, i.e., an unsecured loan certificate issued by a company. The account surpluses and also creditor-debtor relations are open for every user within the network to access.
But, different from bitcoin, the generation of ripple coins is not possible through mining.
Ripple Labs itself only issue the currency. To avoid a rise in the prices of Ripple, the number of ripple units is limited to 100 billion, with 99 billion already made and around 55 billion spread to the users. “Seen from this angle, Ripple Labs is only a digital bank. Power and control lie here with the company, not the users,” said Deutsche Bank Wealth Management in a report.