Investors are worried about whether Ripple will appreciate and whether it is worth buying. In this article, we will look at the main factors that affect the XRP price forecast.
What’s threatening Ripple?
The company’s investors have already filed two class action lawsuits against it. In both cases, they’re demanding that XRP is a security and that the token issuance is illegal. The plaintiffs are telling heart-wrenching stories about how they bought a small number of coins and lost “gigantic” amounts of money, barely more than $500, when the price fell. They also insist on compensation for their losses.
Ripple’s management is calling these claims “baseless extortion,” and is confident in saying that XRP is not a security under U.S. law (the company is based in San Francisco). It’s not yet known what the judges will decide. But if they do equate the tokens with stocks, XRP’s future will be in doubt, and the company could face huge losses from fines and lawsuits from investors. That is probably the biggest threat to XRP’s value right now, but it is more realistic and important than anything that would cause the coin to appreciate in value. If Ripple manages to convince the judges of its infallibility, we can count on the long-term success of the coin.
Four things will predetermine the long-term appreciation of the token:
- The general state of the crypto market. Until Garlinghouse’s prophecy comes true, XRP will float along with bitcoin and the rest of the market, experiencing sporadic spikes based on news of new Ripple wins. In general, the coin’s quotes are held on the word of honor of the coin’s creators and the enthusiasm of investors.
- Lack of inflation. The number of tokens is strictly limited and will no longer increase. True, this factor will come into effect only after Ripple sells out its entire stock of coins. The company sells 1 billion tokens each month, which produces inflation just as much as mining the same Etherium.
- Reduction in the total number of coins. As noted above, all transaction fees are burned off. That is, XRP becomes smaller with each payment transaction. This process is very slow, but it is happening and over time the irreversible reduction in the supply of the token will begin to have an impact on its exchange rate.
- The proliferation of xRapid and the emergence of other technologies that involve the practical use of XRP. In the long term, it is indeed possible, and then the token will have a good chance to compete with ethereum, but not before.
Where to store XRP tokens
Like bitcoins, XRP tokens are assigned to specific addresses on the network based on the results of transaction processing. When it comes to long-term coin storage, the Ledger Nano S hardware wallet is better for key protection. To have prompt access to the coins and to conduct transactions with them, you can use the official Ripple Gatehub wallet. It, by the way, supports dollars and euros, so it is suitable not only for storage, but also for buying cryptocurrency.