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.