Cryptocurrencies are all the rage, what with Bitcoin skyrocketing ths last year.
But what is Ripple and what does it mean for you?
Here's everything you need to know about Ripple; What is it, how to buy it, who created it and why they created it.
You'll also find out what XRP coins can be used for and where to spend them!
What is Ripple Coin
Ripple is a cryptocurrency that was created to enable fast and low-cost cross-border transactions.
XRP coins are what powers Ripple, which means they can be used as a form of payment or for the trading of assets.
Ripple is for everyone, from individuals to banks.
Ripple aims to become what global payments are built on – a single currency and universal standard.
Ripple is trying to solve what they see as the three main problems with existing cryptocurrencies: scalability, cost, and speed.
Ripple aims to make what is usually a matter of days, into seconds.
XRP coins can be used to pay for goods and services – what many people refer to as owning the coin.
It is also possible to trade XRP coins for other cryptocurrencies and fiat currencies, like USD or EUR.
Who Created Ripple Coin
Ripple was founded in 2012 by Jed McCaleb and Chris Larsen, with a focus on creating an open-sourced payment system that could revolutionize what we know about transferring money overseas.
McCaleb was previously the creator of Mt Gox, which at the time was the world's largest Bitcoin exchange.
Ripple founder Chris Larsen has an estimated net worth of around $59.0 billion, while Jed McCaleb is said to have a net worth in the billions as well.
McCaleb left Ripple in 2014 and now works on Stellar, which is a similar cryptocurrency to Ripple.
Why Was Ripple Created
The founders wanted to create a faster and cheaper way for international money transfers, as well as to solve the problem of banks having their hands tied by expensive global payment processes.
Ripple's team believes what they have created is the solution to what ails the traditional financial system.
And that is what makes Ripple/XRP Coin different than other cryptocurrencies – what they're trying to do is provide a better way for the financial system as we know it to work.
Ripple was mainly created for what is known as “cross-border payments,” which happens when one country sends money to another.
It can also be used for what is called “point-to-point” transfers, which happens when one person sends money to another.
How Does Ripple Work
Ripple's xCurrent provides an efficient and reliable bridge for what is known as “cross-border payments” which enables a bank to communicate with another bank in a different country.
Once the transaction has been confirmed, both banks will exchange their local currency back into what they were using previously – such as Euros or US Dollars.
XRP coins are what make the system work, as they can be sent across borders quickly and cheaply.
Ripple is a real-time settlement system, which means what happens is a transaction is done on the same day.
How to Buy Ripple
You can purchase them through exchanges like Bitstamp, Kraken, and Gatehub by using popular currencies like Euros, US Dollars, and Yen.
Ripple's price has risen steadily over the past few years.
With a market capitalization of $3 billion, Ripple is no small player in the cryptocurrency world.
Bitcoin experts believe that what has yet to happen, will likely be good for Ripple's value – more and higher-profile partnerships with banks and other companies, more use cases for the currency.
Experts have predicted that what will ultimately be good or bad for Ripple will be what is good or bad for Bitcoin.
Where Can You Use Ripple Coins
Ripple/XRP Coin is the most practical cryptocurrency for what it's trying to accomplish.
It can be used as an investment, a means of payment for what you want to buy, or a way to reduce what your fees are when transferring money to other countries.
Using what is known as “XRP wallets,” you can monitor what you have, what transactions are happening in real-time, and what your total balance is.
The company's website also provides “Ripple Tools,” which are what people use to send money to other countries.
Some companies that accept Ripple coins as payment include:
- MoneyGram
- MercuryFX
- Western Union
- SBI Bank
More and more companies are starting to accept Ripple coins as a payment method.
Conclusion
The Ripple/XRP coin is a cryptocurrency that has been around for quite some time now and so, it’s not something new.
It was created to be used as an international settlement method between banks or organizations without having to use fiat currencies like the U.S Dollar or Euro which can sometimes have too many fees attached when trading internationally.
For this reason, XRP coins are becoming more popular because they offer fast transactions with low costs no matter where you are in the world and don’t require any bank account information at all!