Ripple (XRP) - Ripple Effect Altcoin Apocalypse?

Hey you, welcome back to the channel. And guys, today we're going to talk Ripple. I've been meaning to do this video for a long time, and we're gonna mix it into our altcoin apocalypse series, and we're gonna see how Ripple holds up. So first, guys, let's understand the difference between Ripple and XRP. It's been a common misconception and a common problem that Ripple and XRP were the same thing, and they absolutely aren't. XRP is the blockchain token that many of us are referring to, and Ripple is a company that produces the software. And so Ripple has this type of hybrid-based situation, and many in the cryptocurrency space don't like hybrids, right? They will say a hybrid is not a true cryptocurrency. And so that's been up, you know, for debate for a while now. But what is clear is that XRP token was ranked number 2, has been ranked number 2 several times. It did go back to number 3, Ethereum regained this position. But, you know, obviously in the cryptocurrency space, XRP token is something to be— is formidable, you know, it's something that's been around and continues to dominate Now, so in understanding this distinction with Ripple and the XRP token, if Ripple's a business or a company that's creating these financial solutions, then what, what are the differences and what, and what are the banks using? Because the One big issue with Ripple in the narrative of what a cryptocurrency is, and then in this narrative we've created in the cryptocurrency space that, you know, working with banks is, you know, it kind of is anti-cryptocurrency in a sense because With cryptocurrencies, many of us picture this perfect idea of, well, we're taking our money back from governments and banks, and cryptocurrency is more like personal banking. It's like being your own bank. And like many of others, that's been a narrative I've embraced to the point where I've went, well, this is pretty much the overall purpose of cryptocurrency. But then to have a cryptocurrency that's kind of creating solutions for banks to make them better banks, and, you know, at the same time serving us, you know, to have this kind of freedom over our money, I think it does get a bit confusing to some. So let's, let's look into that. Let's address that a little bit and let's see where we end up here with Ripple. So now that we got that bank portion out of the way, what's going on? What are the banks using? Are they using XRP token, right? When we say the banks are being served, well, actually they aren't. The banks aren't using XRP tokens like what we use over the blockchain, right? They're using something called XCURB. NX Current, you know, allows these banks to, you know, send across borders and various things like that so that they don't have to pay exuberant fees and have all the issues that, you know, they were having before. So Ripple provides this solution for them. Here are some of the big major banks I guess they provide the solution for. And these, you know, so we could see Ripple as a business, as a company. This is, you know, this is a serious company with a lot, tons and tons of money, you know, and that's just the reality of it. Um, and so I, where the confusion comes in is when people think of Ripple and they think of banks and they think of XRP token. They kind of lump them all together, and that's not the case at all. So, so, so what's so special about XRP token? Why are people invested in it? Why, why do it have this large community that people are part of? And why is the cryptocurrency community supporting it? Well, you know, some of these are mysteries. A few theories I have is that Because Ripple is such a good company and it has, uh, you know, has such good products, uh, service solutions and various things like that, uh, because they're cash heavy and, and have a lot of money, uh, to the opportunistic part of the cryptocurrency space, you know, many of us are still capitalists, uh, you know, they see this as a good opportunity for making money and having a great product. And, you know, one can't really frown upon that, although I do understand, uh, the common narrative we've had in the cryptocurrency space that, hey, why even deal with banks if we don't have to, when banks have long since been, uh, hand in hand with governments and they've oppressed people and they've hit us with, uh, fees and hidden fees and banks and done all types of atrocious things to them. So by us investing in Ripple, you know, are we helping them? Or we're helping them to act obviously to survive and breathe. And so this has been a huge problem for many in the crypto space with that narrative. But if you're the type of person who, who just wants a good product and you just want to make money, then, you know, I think that's what draws a lot of people into Ripple and that's what's going to, you know, keep Ripple thriving and keep them as a major cryptocurrency. Uh, I'm somewhere in the middle on it, to be honest with y'all, um, because I have accepted hybrid solutions. I think they work. I'm a big supporter of Electroneum. It's a hybrid solution, but Ripple is a little bit different for me because, uh, I think because Ripple's kind of this direct relationship with banks, and, and, uh, so it has been a bit from a, uh, a, uh, uh, from a psychological, I guess, perspective. Been a little bit tough for me to fully, with open arms, embrace Ripple because one might go, it's a great product, we can make money, that's all you should be concerned about. But I mean, really, our monetary systems, how they exist today, if you're an opportunistic person about making money and, and that's the only reason you're in the cryptocurrency space, well, for a long time now there have existed things, uh, many vehicles of investment that trade in around the same value as Ripple and very good companies. They're called penny stocks. And you can, you know, buy into some really great ones that have many solutions, um, that could, you know, uh, that could, uh, offer many opportunities as far as just making money and, and having a valuable, um, um, you know, um, a product there. But I guess they're also the, uh, anonymity part that might also make Ripple very attractive to people who are opportunistic about trying to make money. And there's nothing wrong with that. I'm not demonizing Ripple, but I'm simply trying to draw these lines between, I think, why there's a very polarizing effect Ripple has had on the cryptocurrency market. So this moves me into the next point about Ripple, and that's X-Rapid, not to be confused with X-Current. It's another prophesied product of Ripple. And what xRapid plans to do is it will be the banks actually using the XRP token, which is what we use now in the cryptocurrency space. So xRapid plans to convince these banks to perhaps maybe use this token. And here's where I think a lot of confusion has happened with Ripple as well, and that is the idea that the, the xRapid token is a guarantee that these banks will use the XRP token. To be clear, it is not a guarantee that the banks will use the XRP token, and it's actually, uh, many reasons why they won't use the XRP token. So many believe a lot of the speculation that has driven the price up of Ripple has been due to the possibility that many of these banks will use the XRP token, uh, together with the rest of the XRP users, and together that system would be known as xRapid. Now, unfortunately, these banks still have the ability to reject the XRP token. You know, they don't have to use it. What are some advantages to using the XRP token for some banks? Some have experimented with it and they have seen 40 to 70% returns by using the XRP token. So one might go, well, Oh, that's, that's pretty clear-cut. If you can gain 40 to 70% by opting to use the XRP token, uh, instead of using the X-current system, which is what they presently use, you simply switch over to Xrapid, right, and start using the XRP token. You would think that. However, remember, banks are pretty safe when it comes to their money and their business. They oftentimes don't lose. And the difference in the cryptocurrency market with the XRP token is we work on a risk and reward system where we can possibly have great gains. But as you can see, and as Ripple did, the XRP token did, it took a 90% loss. And do you think banks would want to expose themselves to a 90% loss to make 40 to 70% gains? And this isn't me ripping on Ripple. This is just a, you know, this is just the facts of what's going on and why banks would refuse to use the XRP token. And that is because they would now be up to those risks. They would be exposed to those risks, and I don't know if banks would see that as a good business model to, you know, to be trading something that they could possibly see those losses on. So I know a lot of people love Ripple. They have a strong community, which once— which gets me to talk about many of the other pros to Ripple, and that is, uh, or XRP token users. And that is, uh, the fact that they do have such a strong supportive community. So the idea with many of us through the cryptocurrency space has been, well, you build a great product and you will have a very supportive community and everybody will use your product. But We have found that those things don't always completely ring true. Uh, we have a prime example with Bitcoin that, you know, we all know that purposes Bitcoin was originally created to be used for, it's not even being used for that purpose. And that purpose that it was originally created to be used for, to be this money, this digital money we sent across, We have found technological superior products to Bitcoin that accomplish that to the point we don't even use Bitcoin to as a money really, you know, which is kind of weird if you really think about that. And so there, the reason Bitcoin then is able to, to, to, to survive all of this is obviously due to its acceptance overall by community that through faith and through Bitcoin being tested by time over a decade now, that it's going to be around. That level of comfort has caused people to keep using Bitcoin, to keep storing value in Bitcoin, although its utility, the utility of Bitcoin is far removed now and gets further away from it every day. So the point I'm trying to make here is Ripple has this very strong supportive community that despite banks that won't probably use XRP token because they're probably not going to expose themselves to such a great deal of risk. Not the banks that I know. Maybe smaller banks. I could see this being a viable product for small banks like small community banks, smaller banks. I don't see this being a viable solution for large banks like the ones that are using Xcurrent right now. And I could be wrong, but either way, the support in the, in, in the, uh, that the community gives Ripple, uh, is very much real and very much valuable. And that's what I've been trying to explain to a lot of people in this space, that a strong community that believes in you They will weather the storm with you. It doesn't matter if the value drops 90% or 99%, you know, they're going to stick around and they're going to continue to support the token if the narrative is good, if the leadership is good. And Ripple has those things. It has those things. And because of that, My view is Ripple is not only going to survive the altcoin apocalypse, you know, despite loving or hating it, it's going to survive it and it's going to continue to be a top 10 token. And it might even continue to replace Ethereum and it might replace Ethereum for good. And so in the number 2 spot, and so right next to Bitcoin, which is kind of almost like saying you're the best altcoin because, or the best cryptocurrency, because really Bitcoin is not going to be utility-wise, it's not going to fulfill our needs as a cryptocurrency. It simply is not, you know, it's really just like gold. Digital gold for us. People aren't going to use Bitcoin to send payments and try and do transactions. And so Ripple, by continually being a number 2, Ripple's really— it's really been suggested to the cryptocurrency space that Ripple is it, uh, as far as all, uh, coins go. Uh, and again, when you look at Bitcoin as not fully being, uh, a used cryptocurrency in the full capacity how we use, how we really use cryptocurrencies, and how the original, uh, white paper on Bitcoin was. Um, you know, it, it, it makes you think that there's going to have to be a coin that in a sense is going to end up being better than Bitcoin, and they already are, but Bitcoin's still number one. It has the most capital involved in it, right? So, um, so I believe, uh, Ripple will survive, and those are my reasons why. Uh, I do have, uh, my personal issues with Ripple, as I've, you know, outlined here. But Ripple is a coin that I trade, and I've made good money trading Ripple. This recent spike in price, I was able to take advantage of that. And so Ripple is going to provide many opportunities to a lot of people in that capacity. But perhaps I have somewhat been absorbed a lot of the narratives, a lot of the ideologies that exist in the cryptocurrency space about what a cryptocurrency should be. And I have to, at the end of the day, agree with the community that says Ripple doesn't feel like a true cryptocurrency. Ripple to me feels like a really good business, right? It feels like a really good business. You know, if I were to compare Ripple to Electroneum, there are some similar things with Electroneum and Ripple. And I know everybody knows I'm an Electroneum freak and I'm very biased to Electroneum. I will give you that. I will grant you that, which is why I won't feature Electroneum even in this series. Um, because it would be unfair. But the differences are where Electroneum has this very similar feel to Ripple, where you have Electroneum the business that's out signing contracts and doing deals just like Ripple the company. And then you have, um, the Electroneum token and you have the XRP token. But a little bit of the difference is, at least with Electroneum, there is a great deal more better distribution that makes it more healthier. It's healthier and I think makes it more standardized in the form of cryptocurrency because they have the mobile wallet that's just giving away all these tokens to millions of people, you know, all these people per day. And that continues on, you know, they've kind of put aside this treasury to do that. And Ripple, not only doesn't Ripple do something like that to have a token with a good distribution area out to masses of people. But Ripple the company, if I'm not mistaken here, I think they own about half of the XRP tokens that are in circulation. So that means that there isn't a great, even a great deal of distribution with Ripple the business and all of us as a community using the XRP token. So yeah, it's a problem for me personally. Um, I will, as a crypto day trader, use Ripple and keep Ripple, but Ripple isn't— and I know a lot of Ripple people who love Ripple probably gonna hate this video. Um, but to me, Ripple doesn't fit the narrative. I, I think it's a good opportunity to make some money, much, much like I can make money with penny stocks. Much like I can make money, you know, with other investments outside of cryptocurrency. But the issue is, uh, as far as why cryptocurrencies were created and invented and, and being in this space, I, I do not think it fits the narrative. Uh, the good news though is for the, uh, people who love Ripple, and, and again, I don't hate Ripple, I just agree that I don't think it fits the cryptocurrency narrative as good as many others. Even, even a lot of the hybrid cryptocurrencies that exist, I think, fit the narrative better than Ripple or the XRP token. But the good news is I do strongly believe that Ripple will survive the altcoin apocalypse that is prophesied to come. And I think people are going to continue to make a great deal of money with Ripple because, you know, Ripple has a lot of money. It has a great business. It has a grid infrastructure. And, uh, that kind of money just doesn't vanish or go away, guys. It doesn't just empty out into no nowhere. It's gonna be— Ripple's gonna continue to be this factor of this cryptocurrency that works with banks and has a community of cryptocurrency believers and enthusiasts. It's going to continue to be this option coin to that, and I believe it's going to continue to stay in the top 10. So that's my thoughts on Ripple, guys. Guys, if you like content like this, don't forget to like and subscribe. And until next time, take care.