Ripple is now worth $3.68 with a market Cap of $142 billion. Many of us are surprise by this development including myself. Seems that the rumour of Coinbase listing ripple is what driving Ripple's price. I think that this is unlikely for the fact that Ripple is a centralised token. When Ripple gets to $5.00 it will become the number 1 in Market Cap. Should we be alarm that the bankers are taking over?
If we look at the trading in the last 24 hours for Bitcoin and Ripple. More than $5 billion in fiat moved into the crypto space through Ripple, while only $1 billion of fiat move in through BTC. This is a huge change. BTC has always been the gateway for fiat to on ramp into the crypto space. At this rate Ripple will get to Number 1 by next week.
Why Ripple ?
I think that institutional money have started moving into the crypto space. It did not come in through BTC because these investors do not want to drive up the price of BTC to astronomical valuations enriching those who got into this space early.
So I expect to see the value of BTC going to $5000 and perhaps lower in the near term. I also think that it is unlikely that value will remain in Ripple as it is a centralised token. I suspect that value will flow into the new utility blockchains like Cardano, Bitshares, Steem, EOS, Etc. as these blockchains mature.
So what happens to Bitcoin ?
In this new phase with the market cap of crypto exceeding 1 trillion dollars, BTC dominance will dip below 15%. The tussle between BTC and BCH for dominance will be irrelevant. With so much fresh money coming into this space, all cryptos including scams will rise with the tide. However in the long run every blockchain including BTC will need to carve out a real use case to be relevant.