Ripple is the currently the third largest currency behind Bitcoin and Ethereum and it's market cap is skyrocketing at 2 billion USD. But Ripple's market cap was not even 300 million at the start of 2017 resulting to 560% increase so far this year. Stay tuned for more on Ripple's history and how they are helping banks and financial payment service providers.
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it's May 3rd 2017 and here's what's new on the crypto coin show is it too late to invest in ripple ripples history and how ripples cryptocurrency is having success in the market and building relationships with mainstream banks and stay tuned to the end of the show today where I'll give you this week's crypto recommended reading hello and welcome I'm Ashton addison and you're watching the crypto coin show the show where I decrypt the facts to keep you on track of new developments and opportunities in the FinTech and cryptocurrency world today's stories are on ripple ripple is currently the third largest cryptocurrency behind Bitcoin and etherium with a market cap just over two billion dollars American but wait the market cap was not even 300 million at the start of 2017 that's approximately a 560 percent increase so far this year Wow they've come a long way but how did they get there and is it too late to invest to give some background the ripple project originated in 2004 with the intent of a decentralized monetary system that could empower individuals and communities to create their own money and transfer it freely without a middleman a trustless consensus wait I thought Bitcoin was the first cryptocurrency the 2004 is way before the Bitcoin white paper in 2008 however that was just the release of the ripple network the ripple network can also transact with fiat currencies like the American dollar but the most benefits are received when using the actual ripple coin ticker XRP launched in 2013 instead of modeling after bitcoin and creating a currency that increases until 21 million units are in circulation ripple started with 100 billion coins however ripple right now is retaining half of them for future use right now there are about 37 billion coins in circulation unlike Bitcoin no one receives transaction fees from the processing of the transactions and instead fees are destroyed permanently from circulation decreasing the supply in a deflationary manner unlike the American dollar no more ripple can ever be created so the coin cannot be devalued by increasing the money supply over 100 billion but there is the potential for ripple to release the second half of the coins they have in storage at some point vitalic butyrin who used to work as the lead writer and co-founder of Bitcoin magazine but more known for the co-founding of aetherium wrote a strong introductory article a few years ago on ripple coins I'll leave his link to the story in the comment section below so why are bank's choosing to use ripple why not just use the traditional method of transferring funds through a Clearing House or third party time and money maybe time and money bank payments using ripple can now be settled in a matter of seconds as opposed to a matter of days using traditional currencies like the American dollar this is seriously a game changing Network for the financial industry and this isn't just a concept ripple is already transferring large remittances of real money in interbank transactions remember the ripple network isn't just limited to using XRP it can use traditional currencies as well let's take a look at a real situation where ripple is helping banks save money SBI Holdings in Japan is a great success story of cross-border payments using ripples decentralized system the financial services company utilized rippled Network to effectively reduce the remittance cost they realized over 30 percent reduction in cost using ripple system and a whopping 60 percent reduction in cost when using ripples coin and ripple system nevermind the benefit of practically instantaneous completion of transactions on the ripple Network if ripple is so efficient at exchanging funds why isn't every bank are using it well right now ripple is being tested at different banks and was compared at one point to where email was in the 80s there is much room for growth right now over 100 banks are using the ripple Network with at least a dozen banks actually making ripple transactions at the production level in March ripples said that a consortium of almost 50 banks in Japan were in the process of commercializing that technology exceeding the expected rate of bank adoption another good sign for the ripple market with traditional financial service payment providers aren't just sitting around waiting for their jobs to appear visa has created a competing blockchain solution to support international business and money transfers and avoid going obsolete using the San francisco-based startup chain considering these transactions typically exceed 30 trillion dollars per year you can imagine companies like visa aren't going to go down without a fight the question is who will dominate the industry in 10 years so ripple seems pretty awesome oh wait isn't it a red flag that ripple lab is owning half the Ripple they can just sell off when it appreciates according according to Reuters Insider they've received almost 100 million in funding from the last two years and they have more than enough resources to grow into the future because the ripple network works with all currencies they are not forcing others to use ripple coil the two are not directly related to each other but there is synergy when the two are combined it's never too late to get into Ripple and there's definitely more room for growth as more banks adopt the technology going forward please let you let me know what you think of Ripple holding back the 50% of the coins in the comments section below for today's reading I would recommend blockchain revolution by Don Tapscott it goes beyond currency itself and talks about the other applications of blockchain technology including the Internet of Things how we can use it to claim ownership rights on physical assets like property deeds and digital assets like art music and more if you're not one for reading let me know down below and I'll link to Don Tapscott TED talk where he portrays a shorter synopsis of his book I've read his book and I've watched the TED talk and the biggest takeaway from his work is that the protocol underlying these technologies is actually more valuable than the money itself remember the original Ripple blockchain network came into fruition almost 10 years before the Ripple coin currency came out the possibility with blockchain technology are seemingly endless this has been your crypto coin refresh I'm Ashton Addison and thank you for watching remember to like this video share it and subscribe for more look out for next week's video when I decrypt the facts to keep you on track in the crypto world