In the last two week Ripple has shown some huge improvements, nowadays its even over 2$. While a few months ago its value was only a few cents, yet the community awaits more amazing growths. But because Ripple is a lets say 'outsider' in the world of cryptocurrencies, therefore a bunch of misconceptions surrounds it.
So let's make it clear, based on what I found through some investigations.
Decentralized?
First of , What does decentralized means? If the definition means that there is no any organization that supervises and controls its system than the answer is NO. So the answer is no because the Ripple blockchain belongs to Ripple Inc. which is incorporated in Sanfrancisco.
This means that no one can participate or involve in Ripple, not like other in other currencies, that you could just buy ASIC computer and mine cryptocoins.
In the other hand if the definition is, that the "core" of Ripple is not situated in a geographical spot, but spreaded through the world web, then the answer is YES, Ripple is decentralized. Although these spots are controlled and supervised by Ripple.
According to the precise meaning: centralized, private, commision based blockchain.
Was it created by the banks?
Yes, Ripple Inc was created by banks and financial institutions, current and ex-bankers, financial workers runs the company. Banks and Financial institutions created it for Banks and Financial Institutions.
For what is it exactly?
This question is the easiest to answer, Ripple makes the international transactions way cheaper and faster. Lots of states that if we want to transfer our money to another country, and see it on the same day, the only opstion is, to fill our handbag with money, get on a plane, and get there. Or maybe with cocaine, and exchange it into that wanted currency. We both know none of these are safe and fast...
Today we gotta wait like 2-3 days or in worst case 5 days for an international transaction to be completly done, while with Ripple's system, for the same thing we only need 4 (yes four) seconds. Banks have to owe a so called Nostro account, in case to be able to deal with international transactions. So there they can make the excahge which makes the cost of the transaction higher.
- Regulations against money laundring, credibility, checking personal data, taxes, special local laws ect, all of these are slowing down an international transactions. Meanwhile Ripple could become an agreed by each and every banks law. This could make transactions significantly cheaper and faster.
Per seconds Ripple can handle thousands of transactions.
The cost of a SWIFT transaction can be even 30 USD. A Wells Fargo Bank transaction from A country to B country can be done quite fast, and cheap. But if we are talking a transaction between different banks bank account in different countries, the transaction thanks to their obsolete system can be quite slow and way more expensive.
What is XRP?
XRP is Ripple's cryptocurrency. The banks using this to follow out huge international transactions. Although banks could buy XRP in any exchange site, they does their purchases directly from Ripple Inc in huge amounts and discount price.
Why its value will still go up ?
Like for any cryptocurrency, in case of XRP's value is determined by the supply and demand trends. The more people are interested and invested in XRP the more value it will have. This is true for private costumers and banks too.
Currently yet Ripple owes more than the 60% of its XRP. Besides that its true that its value is quite contributed by the high technology it provides.
That Ripple owes more than the 60 % of the XRPs, it can be quite risky too to invest in it. Because the company in any time can decide to sell some share, by thus lowing the value of XRP, or as a "big fish", they got quite much of opportunities to manipulate the prices. While I believe they won't do this, as the creators are interested in a long-term plan, even though it's a very slow and long project.
Why do they created 38,305,873,865.0 amount of XRP?
Fun fact: its a crazy amount of XRP, a lot more from any other crypto-currency. A lot of speculators says that's why its value won't reach 10 or 100 USD because there is no that much money in the whole universe...
Wow, don't know how much money is in the universe, but one thing is for sure, that XRP is a deflationary tool, which means, that after each transaction, a small amount of XRP will disappear, will be deleted.
This means after every transaction the volume of XRP will diminishing, but the price of XRP will grow, slowly.
Will it be able to reach 100 or 1000 USD?
Well this is something, that I can't tell you for sure, but I believe, that as more people are started to be interested in these new technologies, the logical answer is yes, it can reach both, the question is when?
Disclaimer, these are just my speculations, if you use this article as help, you it's your own risk!
But all in all, I think Ripple can easily reach 30 USD or maximum 50 USD.
The big money seems to be quite far yet, I think 1000 USD plan is 5+ years.