Ripple
Ripple, the coin that went from 0.25 cents last year to over 3$ this year. You can imagine new people that come to the cryptomarket might see Ripple and think "Woah that has to be a good investment! Its the second biggest coin and its only a few dollars?!" and without really knowing what they buy, they purchase some Ripple.
But what is Ripple?
Ripple is a (centralized) coin that was designed for banks and global money transfers. The original version of the company that created Ripple dates back to 2004 (wich kinda makes Ripple older than Bitcoin). Back than, the company did not really have a professional team so it didn't get far, until a more professional management team took place in the project wich include Chris Larsen and Jed McCaleb. Since then, Ripple got adopted by some banks and other financial institution who believe in Ripple's system, this news started to make the pice going mad.
Why is Ripple not a good investment?
As you may know the total supply of Ripple is very big (wich means that Ripple will never reach prices as we have seen with Bitcoin) but what you may not know is that Ripple is actually holding back about 60% of the total supply. Imagine what would happen to the price of Ripple if they decided to release this 60% to the market all of a sudden. Now you may ask why Ripple is holding back 60% of its supply. Well there is only one logic reason for this, they are holding back supply for the banks. Many people who bought Ripple, might think that Ripple will one day have a price of 100$ per Ripple because they think that once banks start using Ripple the price will go up a lot, but I can tell you that this won't happen and here is why.
The reason for Ripple to be holding back 60% is because when banks start using Ripple they won't go to an exchange like us to buy a few million Ripple because if they would have to make a payment (wich banks often do ofcourse) it would make the price of Ripple bounce up and down insanely! Banks will be using a private amount of Ripple wich they use for the banking system. So even if all banks start using Ripple for daily transfers, it won't mean that the price per Ripple is gonna surge to hunderds of dollars per Ripple, on the contrary it will probably go down as more Ripple is being released in the system (wich will happen because Ripple said it will be realising up to 1 billion Ripple per month for the next 54 months!).
So when investing in Ripple think about what could possibly happen and don't buy Ripple just because everyone you know is buying Ripple too! Don't go with the FOMO.
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