As many of you already know, Ripple (XRP) recently had a massive price increase. The price jumped from $0.30 to about $0.75 in the span of a few days.
That is a 150% increase in price!
With that price increase, many potential cryptocurrency investors are wondering if Ripple still has room to increase in price. In other words, is the price of $0.60 a good price to purchase Ripple (XRP)?
This article will answer that question. We will also provide plenty of background information that explains our reasoning and some context for the price increase of Ripple.
What is Ripple?
First, we’ll give a very brief overview of Ripple that should help you understand the pricing a little better.
Ripple (XRP) is a cryptocurrency created to facilitate international money transfers. Ripple (XRP) has low fees and is much faster than using a bank to transfer money internationally.
However, Ripple is mostly aimed at financial institutions to transfer money between each other at a lower rate. It might sound ambitious to plan on having financial institutions adopt cryptocurrency, but Ripple has seen an increasingly large amount of financial institutions use it for transfers.
In other words, Ripple actually has real world uses, which is more than most cryptocurrencies. It actually has more real world use than Bitcoin for that matter.
Is $0.60 a good price to purchase Ripple?
As mentioned previously, Ripple is mostly aimed at financial institutions. This is important for one reason:
Financial institutions do not like uncertainty when it comes to transferring currency. They would much rather have a stable price than worry about losing money in the time it takes to send a transaction.
Due to that, Ripple (XRP) has had a very stable price over the past few years. In fact, the price does not change more than a couple percent per day.
The recent price increase was due to the news about the Bank of America partnership. 100% price increases in Ripple simply do not happen all that often.
Can Ripple (XRP) hit $1.00 or higher?
Yes, Ripple has the potential to hit $1.00 or even higher. We actually view that as a strong possibility as Ripple becomes more popular.
That said, Ripple (XRP) will likely not have the massive price swings that Bitcoin has had for a few reasons.
The main reason being that financial institutions use Ripple for transfers and do not like that level of uncertainty. The other major reason is that Ripple is actually controlled by financial institutions, so they have the ability (and reason) to ensure the price stays stable.
The other reason is that Ripple does not have the same mechanics as Bitcoin. Ripple does a good job at burning XRP to keep the price stable. Other cryptocurrencies do not usually burn their own cryptocurrency, which can cause some massive price increases.
Is Ripple or Bitcoin a better investment?
The difference in Ripple or Bitcoin as an investment depends on what you are looking for in an investment.
Are you searching for a somewhat stable investment with the potential to slowly increase in price?
Ripple (XRP) is likely the best choice for you. The price of Ripple (XRP) is almost always flat day to day, which makes it a great store of value. Of course, good news about Ripple comes out on occasion that can cause massive price increases.
This makes Ripple (XRP) one of the safer cryptocurrency investments. It’s low risk with a medium reward.
Bitcoin, on the other hand, is a good investment if you are willing to take risks with your money. Many experts have predicted that Bitcoin could rise to $100,000 USD in 2021. The risk with Bitcoin, however, is that the price could just as easily fall to $4,000 USD in 2021.
That has happened before, so it’s reasonable to think it will happen again at some point.
With all that in mind, we strongly encourage holding some Ripple (XRP) to reduce your exposure to the wild swings that other cryptocurrencies usually experience.
That covers everything that you need to know about the current price of Ripple (XRP) and whether it’s a good time to purchase it.
In our opinion, $0.60 is a good price to purchase Ripple (XRP). The price will likely hover around $0.60 for the foreseeable future due to the large number of banks that use Ripple (XRP) for monetary transfers.
But any good news about Ripple will likely send the price of Ripple soaring again.
This makes Ripple a relatively safe investment with a large potential upside.