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 Ripple has signed up nearly 100 banks to date, so it’s dealing with a receptive audience who don’t have to fear or worry about losing home field advantage. Author: sky Since the birth of Bitcoin in 2009, the world has been divided into supporters and skeptics of this new financial technology. China’s ban on ICOs (initial coin offerings) once again demonstrates deep global concerns about the social value of cryptocurrencies. Why are people, governments, and institutions worried about cryptocurrencies? This is a very complex question, and the simple answer is that ordinary investors are hesitant to trust a system they don’t understand and don’t realize what kind of judicial territory they are wandering into. A gap in knowledge about the concepts behind cryptocurrencies and how they are organized prevents blockchain technology from reaching its full potential. These gaps also lead to all kinds of misunderstandings. One of the first misconceptions is that people think that all cryptocurrencies are the same. Not one-size-fits-all The debate over cryptocurrencies has long revolved around Bitcoin. Bitcoin has become a symbol of the entire industry, and you can only choose to support it or against it. What people often overlook is that each popular currency has its own unique features. One company may soon play a key role in people's lives: Ripple. While some in Bitcoin circles were inspired by a somewhat anti-government and anti-bank mission, Ripple went in the opposite direction, developing a network that revolutionized the trading systems currently used by the largest financial institutions. It can complete transfers in 3.5 seconds, compared with SWIFT (Society for Worldwide Interbank Financial Telecommunication) technology, which can take days to complete a transaction. Ripple has signed up nearly 100 banks to date, so it’s dealing with a receptive audience who don’t have to fear or worry about losing home field advantage. In addition, the company also invented a technology called the XRP ledger, whose existence is not limited by the lifespan of the company. Even if this company dissolves to make way for other companies, the XRP ledger will continue to trade. It requires no miners and provides high enough efficiency to truly impact financial markets today—without having to challenge the current market leaders. A symbol of uncertainty? Understanding Ripple will not only help a skeptical public embrace the overall potential of cryptocurrency, but it will also be the ultimate way to get people to accept the underlying blockchain technology. First, Ripple is likely to stand the test of time because its entire mission is to solve a real problem that is relevant not just to the big banks but to each of us. Anyone who has tried sending money across borders and encountered exorbitant fees and maddening processing times will welcome a world where transfers can be completed in just 4 seconds. Second, Ripple (and many other cryptocurrencies) greatly simplifies the trade-off equation when looking for investments. In the past, investors often needed to judge a company's future discounted cash flow, a number that would be affected by countless factors. Now, they only need to focus on simple supply and demand. The reason is that what they face is first and foremost a store of value. In the case of Ripple, the supply is certain and transparent, so the only thing we need to know is whether demand will go higher or lower in the future. Judging from the huge interest in Ripple among influential financial players, the former is almost certain. in conclusion There are many hurdles that need to be overcome before governments, private institutions, and society at large can fully trust the value of cryptocurrencies. A key problem is that people's understanding of the differences between currencies is still very rudimentary. Ripple is a good example of a company that has created a very useful network and we can easily understand its application scenarios. When the public grasps the full potential and efficiency of Ripple, it is expected to gain a lasting seat in the financial world. END Long press the QR code to follow us   |
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