So who else has been pumping their mining profits into Ripple (XRP) over the past few months? I started in June.. holyyyy crap it is skyrocketing now. I actually never thought this would happen.. haha. At best I was thinking I'd make maybe $1000-2000 with my 1080 and 1080Ti mining Zcash until they reached end of life for mining difficulty.
XRP Ripple
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Yeah it's great. Investing in XRP sucked for a long time.now it's ballin
so i been moving my aeon which is hovering around 7.5 per coin and buying XRP. I got 14 coins of XRP, many below the 2 dollar mark.
IDK if I should still get more XRP in trade or just keep the 14 i have and wait to see if it gets up to 10-20 dollars each.
Thoughts?
IDK if I should still get more XRP in trade or just keep the 14 i have and wait to see if it gets up to 10-20 dollars each.
Thoughts?
There is zero strategy to any of this. If you're looking to buy and are hoping to make some money just spread out assets. There's a built in rarity for these currencies, but the value is all arbitrary. It's based on people buying them, rather than having a value in itself.
Ripple is exclusively a trading currency - it has no underlying value, is tied to Ripple the company, it is not a cryptocurrency, and it is not yet in use by its target audience! Its market price is 100% tied to the hype cycle. When (and I do mean WHEN) the hype dies the price will crash even harder than regular cryptos. Maybe keep some, but remember the old saying - nobody lost money taking a profit.
To activate an XRP wallet address for receiving XRP costs a lot of ripple. Anyone who wants an address has to buy XRP to get started. Even more ponzi-like than most other coins in that regards.
I paid into this to get cheaper transactions over to Poloniex. Compared to the BTC and XMR fees, XRP is great. As long as I deposit to that address at least 3 times I'll be saving money.
I think this is one big factor for the rise of XRP -- it's the cheapest currency (for transaction fees) that's widely accepted at exchanges, while, to take advantage of that, you have to pay a membership fee of sorts. Built-in demand so long as more people are joining the crypto fun, and so long as ripple continues to serve this purpose.
I hear you funkywizard. Isn't it sad that we have to resort to using ripple for cheap inter-exchange transfers when that's supposed to be one of the functions of nearly all the cryptos? If/when multiple exchanges support Segwit and/or lightning then I can see your use case for ripple diminishing. Until then, your reasoning make sense. I'd still caution people who think it's going to be a currency worth hodl'ing long term.
Yeah, I don't intend to hold ripple, just saying that this pay-to-play aspect and lack of possible mining is likely responsible for a good portion of the price increase. Or at least, that initial demand provides a trigger that the momentum traders see and get excited about.
The combination of high liquidity and low transfer prices makes it a compelling medium of exchange, so I do appreciate it for that purpose. As there is no "mining" of ripple, my understanding is that there is no artificial "difficulty barrier" for transactions. I've heard that transfer pricing in bitcoin has stayed pretty stable in bitcoins, but as bitcoin has appreciated far more than people expected, the real dollar transaction fees appreciated along with it.
I really think that the ransomware attacks last year is what got this frenzy started. People who had never heard of it before needed to buy it to get their data back, spiking demand. Ransomware meanwhile was big news, which in turn crypto was big news.
The total dollar value of ransom payments was supposedly fairly modest. Even so, the spike in knowledge of crypto, spike in attention given to crypto, and the initial price spike from this new use-case for bitcoin, I think was the initial trigger. Once there was awareness, combined with a perception that this was going to the moon, increased prices were enough to cause speculative demand, and therefore prices, to rise further.
Therefore, a "real" (but relatively minor) event prompted the runup. Similarly, I expect that a similarly "real but minor" event will be the trigger for collapse once the inflows are tapped out.