Why Ripple is Falling? | XRP Price Crash Top 5 Reason Explained

Why Ripple is Failing?

Cryptocurrencies allow us to transfer money to each other via the internet without a trusted third-party. And it allows us to avoid using national currencies, which are manipulated by our governments.But still wondering why the big companies haven’t adopted the XRP payment method? Its because of the exponential growth in the processing speeds of the computing processors. This means the foundation on which ripple was built i.e “Cheap Processing Power” is not really required as it is already being provided by the growing hardware markets. Big players like Intel and AMD come out with processors which have almost twice the processing capabilities than their latest products. Also ripple has kept its ledger private till now and it isn’t open source like other altcoins. They may decide to release it publically even tomorrow and you being a investor have no control over it. Also XRP is not intended to be used by Big Banks as many believe. Only the technology will be used by Big Banks. XRP was created to fund the company “Ripple”, they own about 60% of all XRP available. So whenever they need extra cash for development, hiring, bonuses etc. They will be selling some of their XRP and that can keep prices going down for a long time until they have sold most of their XRP and they are being traded with higher volumes

Top 5 reasons Why Ripple’s Price is falling

  • There is a big Lawsuit pending against ripple.

Ripple is already under a big lawsuit over options contract by the company R3 Holdco LLC

And the judgement yet to be delivered. This can go either with ripple or against it.

  • Ripple can manipulate XRP to markets because it is centralized currency.

“We will engage in distribution strategies that we expect will result in a stable and strengthening XRP exchange rate against other currencies.” Is a statement officially issued by the ripple meaning they can manipulate XRP as they want to keep the currency Decentralised. Also ripple is developed by an private org.

  • There is no requirement for “Cheap payment processessing”.

One of the basis of foundation for ripple was to reduce the resources required to process a payment. This included computing capabilities which are governed by the “Moore’s law” Meaning the capability increases exponentially every 18 months. Thus eliminating the need of a cheaper payment process.

  • XRP’s capitalization is falling rapidly.

 In just last 4 months XRP price fell by more than 30% and there doesn’t seem to be end of this unless it goes back and manipulates the XRP releasing more coins. Meaning the regulation is very unstable and can vary as they want.

  • No big players want to invest in it.

The reasons why Big players don’t want to invest is

  • They aren’t in control of the XRP. The ripple is.
  • Its unnecessary to invest so much for just a fractional change in the payment methods.
  • Ripple can fall as an altcoin. There is no guarantee backing it.
  • It is decentralised currency.

XRP Price crash

Why Ripple is Falling
Why Ripple is Falling

The major challenges for Ripple and its product, XRP, will be pretty much overcoming any government and competition obstacles, making sure the banks AND the investors are calm and constantly updating the company and its products while not making any major mistakes. The only thing ripple can do about it is to release more coins and pushing the Market Cap a little further. Although this goes against its policy of being decentralized. Thus it is safe to say nonetheless ripple can be still considered a good long term investment due to the current statistics. Infact some suggest this price crash might attract even more investors as they want to invest in it at its lowest, ensuring great profits in future

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