written by andrew button at motley fool canada
At this point, it is clear that bitcoin (crypto:btc) is not the future of money. that is not to say anything negative about bitcoin. the coin has played a vital role in the growth of the crypto ecosystem as a whole and has served early investors well. it can certainly be used as a viable payment option in many businesses around the world.
Reading: Is bitcoin the future of money
but as far as that being the future of money, well, that debate has largely been settled. cryptocurrency in general is certainly being used more and more to power transactions. but if we look at the list of cryptocurrencies with the most transactions, bitcoin is not even in the top three. Generally speaking, it seems that cryptocurrencies backed by institutional payment networks are used more than bitcoin in the real world. In this article, I will explore one of those cryptocurrencies that many banks around the world are rapidly adopting.
xrp
xrp (crypto:xrp) is a cryptocurrency whose blockchain is rapidly being adopted by many of the world’s banks. The Canada Imperial Bank of Commerce has already started using it, as have banks in Israel and Australia. Banks that are adopting XRP say that the high speed of the blockchain gives it an advantage in processing global payments. This makes perfect sense. Compared to other cryptocurrencies, XRP offers much more transactions per second. It is already the second most popular blockchain in terms of daily transactions, and it could become more popular as more banks start using it.
why it is so promising
xrp is a particularly promising cryptocurrency, or more accurately, blockchain, for several reasons.
first, the ripple blockchain offers up to 1,500 transactions per second. this is much faster than the average crypto. For comparison, bitcoin offers only seven transactions per second, while ether offers 15. This speed gives it a huge advantage when it comes to banking customers, who have a huge number of clients they attend.
second, xrp is actively supported by its developers. ripple labs is always doing things to support xrp, like recruiting vendors to accept the token and using ripplenet for cross-border payments. ripplenet’s website says that the network uses the xrp token for liquidity, so while banks do fiat transactions, the xrp token is involved in the back-end.
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Third and finally, xrp is enjoying a lot of favorable publicity right now. ripple labs is being sued by the sec, and is widely perceived as a winner. News coverage of the Ripple lawsuit has largely revolved around the SEC’s statements that have undermined its own case, along with the litigation victories Ripple Labs has racked up. This favorable coverage helps improve ripple’s image as a “winner” and could generate more interest from major financial institutions.
dumb takeout
as we have seen, the ripple network enjoys many advantages, which has led it to become one of the most popular cryptocurrencies for transactions. in terms of real-world usage, it has already surpassed bitcoin. Whether that will translate into gains for xrp remains to be seen. but since the ripple network uses xrp, at least it seems possible.
post bitcoin is not the future of money, but this cryptocurrency could be! first appeared in the motley fool of canada.
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foil contributor andrew button has no position on any of the above actions. motley fool owns and recommends bitcoin and ethereum.
2022
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