Bankers' Coin Became #1 in terms of % Gained in 2017
It's disappointing to see the Bankers' Coin (a.k.a XRP) is taking the first spot. There are so many discussion why XRP is not really a legitimate cryptocurrency.
To shed some lights on why I think XRP is not a "cryptocurrency" let's explore few questions:
1- Can Ripple be mined?
A: Nope. There's no PoW, PoS, hybrid PoW/PoS, or DPoS protocol in producing XRP.
2- Who controls the 60% of the Ripple that is not in circulation?
A: As of 12/7/2017 Ripple controls 55 Billion XRP. You can read more on this here.
3- What do big banks want more than anything in the cryptocurrency world?
A: To control cryptocurrencies
4- Can anyone become a validator of transactions in the Ripple network?
A: No. ONLY institutions (banks & non-banks) can become a "validator". Every server processes every transaction according to the same deterministic, known rules. Unlike Ripple, in cryptocurrencies such as Bitshares, anyone can become a validator ("witness"). The stakeholders can elect any number of witnesses to generate blocks. Each account is allowed one vote per share per witness. The number of witnesses is defined such that at least 50% of voting stakeholders believe there is sufficient decentralization. Each time witnesses produce a block, they are paid for their services. If a witness fails to produce a block, then they are not paid, and may be voted out in the future.
Don't take me wrong. I understand that Ripple network is an efficient way to settle transactions between financial institutions. What I don't understand is that why they have tokenized this network and been selling it to the public. Is it some type of security such as stock or ownership of the company?
Per WSJ on December 12th:
- "XRP is different from other digital currencies in that its development is being guided and controlled by a single, for-profit company."
Also, in the same WSJ blog in regard to XRP supply:
- "When Ripple launched the network in 2012, it created 99 billion XRP. About 38 billion have been distributed; the company holds with rest, with plans to release them publicly over time."
Let me know your thoughts.
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I like your post. I wish more people see your analysis. I am shouting from rooftop that it is a scam but people are not listening. It will be fun to see it going down. It is a pity that a shitcoin like ripple is overshadowing Bitcoin. It has actually gained more market cap than bitcoin if you look at total supply.
Thank you...agree, I also wish more people spend more time to understand cryptos and money in general!
Thank you for this information regarding Ripple. Looking back I missed out on buying XRP at thirty cents, however it was purely over my distrust of the currency itself. I currently hold some XRP, but purely to ride the wave of hype.
Thanks...glad it's insightful!
intresting post get it to my wall thanks 🙂
Thank you!
#bitcoin
My head has a headache thinking about the bitcoin price now because its selling it