Is Ripple Enhancing Modern Banking?
Ripple As A Threat To Modern Banking
It will surprise no one to learn that banking has
always been a complex business. It will also surprise no one that, four decades
ago, sending money from a bank to another or from a country to another was
truly difficult.
The concept of electronic currency as we know it today
didn’t exist, and communications were much more limited. Often, transactions
between banks had to be processed and approved by an employee, as opposed to
batch processing.
That process included banks dealing with one another
and finding ways to pay each other however much the transaction would cost.
More importantly, it often required, not two, but a
handful of banks had to deal with each other, since not all banks had a direct
relationship with all other banks. So, oftentimes, a wire transfer would mean
your money would go through two, three, or even four different banks before
reaching its destination.
If this process sounds slow and expensive, that’s
because it was. That’s the reason wire transfers are so slow, and it shouldn’t
be difficult for anyone to understand this. Moving money around internationally
was expensive because a lot of work was involved in the process.
Ripple Meets A Need
What’s difficult to understand is why, just why this
hasn’t changed at all since. In a world where e-commerce is all the rave and
where we can make PayPal transfers and credit card payments instantaneously,
it’s somehow still impossible to send money for your granny in Slovakia without
waiting a few days and paying a lot for the “privilege.”
And that’s exactly why Ripple exists.
There’s not a lot else you should know, at least
nothing that doesn’t apply to all kinds of investment. While Ripple is looking
good and there are reasons to expect it to appreciate as time goes on, you need
to keep an eye on the market regularly.
The market
moves quickly, and it can take only a good (or bad) news item to make the XRP
price skyrocket or crash.
Part of the game is staying ahead of the market, so
you’ll want to set stop orders and set up a few alerts about the currency, or
the market in general, so that you can react on time to anything.
Conclusion
It is never a good idea to place all your eggs on the
same basket. This means two things: First, you should also invest in other
crypto tokens rather than putting it all in XRP.
But second, if you’re looking
to start an investment portfolio, you should put some of your investment money
on non-crypto-related venues.
This is not because the crypto market will crash, but
because we can’t know for sure it won’t. We hope it doesn’t, but we can’t tell
the future – and it’s always better to be safe than sorry.
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