Ripple; Liked by the Corporations and Banks or Hated by the World of Cryptocurrencies?
Why is there such an understanding of Ripple in the world of cryptocurrencies? Can Ripple (XRP) cause annihilation of the meaning of the world of digital currencies.
Ripple is one of the most controversial members of the world of cryptocurrencies and new technologies. There is a fine and interesting point about it that is worth investigating. Among financial institutions, different corporations and banks, Ripple has a good name and many fans, but in the world of cryptocurrencies and Blockchain, it is somehow loathed, and the other players in this competition don’t have a good relationship with it. Why? Why is there such an understanding of Ripple in the world of cryptocurrencies? Can Ripple (XRP) cause annihilation of the meaning of the world of digital currencies, the decentralized and uncontrollable world of communications and transactions?
Why Do Banks and Corporations Like Ripple?
If you pay a little attention, you will understand the reason of the banks, institutions, and companies’ interest in Ripple. Using XRP lets different banks, financial institutions, and active corporations in commerce and business remove the middlemen and not need any third party in doing trades and transactions in their international transboundary payments. As a result, the costs of trades will decrease to a large extent. For example, a well-known currency payment company, PayPal earns a three-percent fee in each electronic payment. It is obvious that all are seeking for a solution through which they can minimize financial transportation costs; however, the fee earned for money transfer is much lower that what might make businessmen and investors anxious.
One of the other major reasons of interest of the people and the corporations outside the world of cryptocurrencies; i.e., banks and financial institutions are the dramatic number of transactions per second. Ripple advances 1500 transactions per second. In addition to the fact that in a matter of seconds, the to-be-transferred amount will reach the receiver.
What Are the Reasons for the Disinterest of the World of Cryptocurrencies in Ripple?
The players in the world of cryptocurrencies don’t like Ripple. They believe that the first objective of creating Blockchain, Bitcoin, and generally, the world of cryptocurrencies was to remove intermediaries and not let the banks and financial institutions intervene in the world of relationships and payments. Now, Ripple has caused them to be more strongly present in the world of transactions and trades and question the peer-to-peer trades. XRP is not a decentralized currency. A corporation does an operate on and controls the network. It is against the nature and identity of digital currencies, and it is a purpose that Bitcoin and its peers had at the beginning of the way.
These are among the reasons for enthusiast adherents of cryptocurrencies not to welcome Ripple. Anyway, Ripple has had many achievements during its activity, and it seems that it has been able to find its status in a mazelike world of digital currencies by special opportunism which it had adopted. We should see if the existence of players such as Ripple helps the growth of this market or if it disturbs the purposes of the adherents of the decentralized world imagine and appear as intruding and delaying element in the speed of cryptocurrencies.