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Digital currency Ripple soars 70% overnight

Dec 13, 2017 Posted /  2619 Views

Digital currency Ripple soars 70% overnight

The digital currency Ripple elevated significantly in a 24-hour period, shooting up to about 30 cents from a price of around 17 cents. The price hikes additionally also lead to a surge in market cap of Ripple to approximately $11 billion, momentously making it the third priciest digital currency after Bitcoin and Ethereum.

Ripple can be considered as a corporate kin to Bitcoin. The blockchain technology, which creates an everlasting, unalterable transaction record underpins this currency.  Although contrasting to many other crypto-currencies, it is controlled by a company and not mined.

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The reports that appeared yesterday depicted that Ripple subsequent to continuing flat at around 16 cents for the most time of the week, suddenly shot up and reached the double value. However, the value of Ripple has declined somewhat and settled to approx 23 cents (as of Wednesday ET), making it descend to the fourth position on the list of most expensive crypto-currencies.

Nonetheless, the actual reason for the value hike is uncertain, but most of the trade publications have found that the surge in the price corresponds to the intense trading of Ripple on Korean exchanges.

The interview given by Ripple CEO Brad Garlinghouse to Fortune magazine suggested that he is not ready to acknowledge the role of exchanges in Korea. He remarked that it would be an overstatement if someone appraises the value of XRP to some specific developments. Instead, he endorsed that the worth of the currency has emerged because of its convenience in processing transactions, and its knack to provide liquidity for banks.

In the interview, Garlinghouse stated that numerous big banks are clients of Ripple, and are utilizing the software to facilitate in speedy transfer of money. He said that these banks are attracted by the security provided by Ripple along with the prompt transfer process in comparison to the pertaining financial model, which was designed majorly in the 1960s.

One question which however is always asked is, ‘what role Ripple will play in the coming time?’ When the digital currency originated in the market, it bestowed a method for the populace to exchange any type of currency with some other.  However, it required the users to spend Ripple to complete the financial transactions. But when the banks started to license Ripple software to transfer money to each other, some started questioning the need of XRP in the transactions at all.

The CEO of Ripple says that XRP can facilitate banks in liquidity. In the meantime, many reports are stating that Ripple is selling XRPs to big banks at discounted rates to promote its use, along with supplementary units of the currency in the open market. Although in an update Ripple elucidated that it offered its currency to the banks in order to encourage the usage, and also traded it for discount to hedge funds in order to act as market makers.

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Tags: Ripple digital currency Ripple price value of XRP

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