XRP (Cryptography: XRP) and Bitcoin (Cryptography: BTC) It is a proven cryptocurrency that won’t turn to zero. In the long run, they are more likely to be worth more than they are today. And they may even be a better bet than some assets people think are pretty safe.
So even conservative investors should consider buying and holding them at a modest rate, such as a total allocation of around $3,000 between both. Here’s a discussion of why these coins are at home in a low-risk portfolio:
Bitcoin and XRP are valuable for a variety of reasons, and the differences are even more important than usual for portfolios intended to be safer than average.
XRP is valuable because it is an active use and financial technology under development. It aims to beat technologies like Swift, which are widely used to make international financial transfers. Swift is expensive, transactions take days to close, and even worse, banks that use it usually have to pay a currency exchange fee on top of the transfer fee. If these banks use XRP as the exchange medium instead, their transfers will close in seconds, and on average, penny fractions cost.
Therefore, financial institutions have a strong incentive to purchase and use XRP. The larger the international transfer volume, the more you can withstand to acquire, but you will need to buy more XRP. Therefore, XRP will continue to change capital as banks continue to change capital over time, and unless there are other technologies that increase the price of coins, banks continue to change capital. If global economy and money are no longer transferred between accounts in different countries, all bets will be turned off, but the value of XRP could likely increase, rather than decrease in the long run.
Bitcoin, on the other hand, is worth it today as supply growth rates are slowing as mine is getting much more difficult. It can’t be printed like Fiat currency, so it could act as a hedge against inflation. And it will not help much, so perhaps it cannot be evacuated by new higher competitors. This means that as long as you can capture a consistent level of demand, you are very likely to continue to acquire value. This is the same phenomenon as shown in the most basic supply and demand charts in all microeconomic textbooks.
Plus, bitcoin miners are spreading all over the world. In a single country with economic collapse, it does not prevent it from being mined. A single government cannot ban it. Full support for the idea of being “digital gold” is a little earlier in the life of an asset, but appears to fit Bitcoin based on its lasting appeal. And if the degree of interest from financial institutions is any indication, there is still a lot of capital set up to flow into the coin, and will likely stay there for years.
The story continues