XRP continues to dominate as one of the most popular altcoins with the highest volumes. Known as the “cryptocurrency for banks”, Ripple is a project that aims to unify transactions with a more convenient form of global payments. In our XRP price prediction 2022, we will take a better look at the technology behind Ripple, the ongoing price calls and what is in store for XRP holders. So should you get into the XRP hype or will the feds get a hold of its developers and close it down permanently?
The Ripple token (XRP) may be used on the platform, and it is interchangeable with any other currency or digital asset. XRP, on the other hand, has no relation to the ripple network. To move money between currencies, a user doesn't need XRP. As a result, rather than being valued in terms of the XRP token, Ripple is priced in terms of XRP. The company has marketed the token to make international payments more efficient and less costly.
The price for XRP peaked at $1.97 during the 2021 altcoin season and has since then struggled to return to this range. As of this writing, XRP ranges from $0.6 to $1. As long as the BTC price has a healthy movement, so will XRP. Speculators declare that the price can soar as high as $2 to $4 by the end of 2022 and still has a long way to go before it reaches its “optimal” price. It’s quite a fan-favorite crypto, especially since the SEC loves to bully Ripple into submission. But, as long as there is legitimate proof that its technology will benefit the banks rather than cripple them, Ripple will be far from ever getting closed down.
We will look at the XRP price prediction 2022 throughout the rest of this article.
What is Ripple?
RippleNet's xRapid solution does not compete with fiat currencies or existing payment methods, like other cryptocurrencies like bitcoin attempt to do.
In 2004, ripple was first imagined, but it didn't take hold until 2013. In 2013, Jed McCaleb (a well-known developer and entrepreneur who also helped create ripple) invited a group of investors to join the network. Chris Larsen is one of these angel investors and is known as one of the most wealthy individuals connected with cryptocurrencies.
Since its launch, Ripple has become one of the largest cryptocurrencies in market capitalization. As it becomes more widely adopted, the value of XRP will likely increase as well. However, XRP exists only on ripple's network (or the respective networks controlled by other companies) like all cryptocurrencies. Ripple itself owns about 61% of all XRP tokens.
XRP is available as a trading pair with almost every other cryptocurrency (bitcoin, litecoin, ethereum and several others), as well as fiat currencies like euros or US dollars.
Ripple can have a significant impact on the world of payments – the financial services firm focuses exclusively on providing cross-border payment solutions. RippleNet can provide financial institutions with a more efficient, cost-effective and transparent way to make cross-border payments.
In addition, ripple has forged relationships with banks across the world, including Bank of America Merril Lynch Group and Santander. If the institutions will accept Ripple’s technology in the future, then transactions and business deals will find a more convenient way to conclude negotiations.
The South Korean internet giant, for example, is looking to provide digital currency services using XRP's protocol. While this seems a win-win situation for both companies, it will be interesting to see if ripple can successfully integrate with Bithomp. Ripple technology has already been used by other organizations like remittance services, banks and digital asset exchanges.
The hype surrounding ripple has decreased somewhat since January 2018; however, there are still many enthusiastic cryptocurrency supporters. Banks like Santander (Banco Santander) currently use Ripple technology to offer instant cross-border payments.
Western Union also uses Ripple tokens for international money transfers. Western Union aims to integrate XRP to make its cross-border payment services faster and more efficient.
Altogether, XRP is one of the most promising cryptocurrencies available today. As a result, it has been able to solidify itself as one of the top five cryptocurrencies by market capitalization, despite fierce competition from other well-established currencies like bitcoin.
XRP is readily available on most major cryptocurrency exchanges and can be purchased with fiat currencies like euros or US dollars. It is also widely used as a trading pair for other cryptocurrencies like bitcoin and ethereum and is currently one of the more popular digital assets in terms of market capitalization.
The Technology of Ripple
The network of Ripple is based on its protocol consensus mechanism. It does not utilize Proof-of-Work or Proof-of-Stake, in contrast to those two systems. Instead, many independent nodes verify the validity of accounts and transactions using Ripple's transaction protocol.
For the operation to be accepted, every node must agree on it, and this is the only path through which transactions may be completed. Furthermore, by conducting polls to assess the general preferences, this protocol improves the system's security against 'double spending' by ensuring that most people want one thing.
Double spending is the chance that cryptocurrencies might be spent twice, which is a problem unique to them. It's also due to digital data that may be readily reproduced by knowledgeable individuals who understand the blockchain network and the computational power needed to tamper with it.
Users will not be able to make multiple payments with the same amount of cryptos. This is because the system recognizes the transaction first and subsequently erase all subsequent data. Furthermore, in this consensus technique, validation takes just a few seconds. As a result, minimal transaction time: operations generally take around 4 seconds to complete.
Ripple also utilizes gateways. These gateways portray as the trust chain between two engaging parties that seek to complete a transaction. Banks, for example, are gateways. Even more, the architecture of Ripple is identical to that of the SWIFT global fast payment system.
Price Prediction for 2022
The future feels uncertain for Ripple. Yet, some experts believe that XRP will reach a $10 or more value, while others believe that its value could be much higher. Whatever the case may be, it seems likely that XRP will continue to rise in value as its popularity and use cases continue to grow.
However, XRP has always been one of the more polarizing cryptocurrencies in the market today, precisely because of how the SEC deems its developers as criminals in finance. Those who know the tech behind Ripple remain unfazed no matter how much the SEC or any regulatory department harasses Ripple. But, those still new to the world of cryptocurrency, they will have doubts. After all, why settle for XRP when there are other Defi tokens out there like the ever-growing Polkadot or the fan-favorite Cardano. Yet, if you consider XRP as a solid pick that may rake in unspeakable profits for you in the future, then you may have some good cards up in Ripple’s sleeves.
Will XRP Reach $10?
The biggest question that comes to everyone’s mind in Ripple is if it is worth becoming $10 per token. This all depends on how Bitcoin’s movements pan out, as well as the SEC slowly letting go of Ripple. Given that departments will see Ripple as a legitimate technology that will benefit everyone, including billion-dollar corporations and banks, without manipulating the old system, the price of XRP will certainly spike up. While it may be less than $1 today, the future does seem bright for the altcoin.
However, if the SEC proves that Ripple is a dirty technology, it will have a significant loss in its price. Additionally, this kind of result may even affect cryptocurrency as a whole, especially if the masses will agree with the SEC that crypto is nothing more than just a fad with made-up words just to make everything sound legitimate.
Yet, as more companies support the blockchain, there is still hope for XRP. After all, XRP is one of the most popular altcoins to date. Moreover, with its ever-growing technology despite all the controversies as well as transfer fees and transaction speeds proving faster and more efficient than the likes of Bitcoin’s performance or Ethereum’s statistics, Ripple may soon return to its throne as the #3 coin based on market cap.
Should You Worry About the SEC?
Is Ripple in trouble all this time? Technically, all cryptocurrencies are under the raised eyebrows of governments and the SEC. However, XRP is the most popular target among the others since it is directly under investigation. Yet, should this make you turn your head to another currency instead or should you keep having diamond hands no matter how hard the institutions try to crack down Ripple?
The Claims
According to the SEC, Ripple's platform, which allows businesses to move money, was financed using XRP, making it a security. The company's executives were likewise enriched with the sale of XRP in the process. Protection must be registered with the SEC and certain financial information must be made public under its regulations. The objective is to prevent fraud and protect investors' interests. They also claim that it forces governments to reconstruct the tax laws, although, in reality, some governments already adapt to cryptocurrency’s way of income to ask its users to declare their taxes such as Australia.
The Howey Test, which was created by the Supreme Court after SEC vs. W.J. Howey Company in 1946, is used to determine whether a virtual currency qualifies as a security. The test is that if an item is marketed with the promise of profits derived from the efforts of other people, it must be classified as a security. It is important to note that the Howey test is not an exact science. The main argument was whether XRP was liquid enough to be traded on open markets.
One of Ripple's arguments centered around the company's decision in September 2016 to lock up 55 billion XRP into a cryptographic escrow account, which it has complete control over. This meant that Ripple could not threaten to flood the market with XRP, a move that would collapse its value.
Two months later, Ripple opened up about 55 billion XRP from escrow and sold them on secondary markets over the course of four weeks. Only 5% of those funds came from selling XRP owned by the company itself. The remaining 95% were funds from XRP owners. Because Ripple did not spend this money, the company claimed that there was no expectation of profit and therefore argued that it could not be considered a security.
However, during testimony, David Schwartz (one of Ripple's founders) revealed that he had researched the Howey test before opening up about the 55 billion XRP. Schwartz had concluded that the sale of XRP did not have to be registered with the SEC because it was not a security, which means that Ripple's legal counsel was either unaware of his findings or intentionally ignored them for their own benefit.
The fact that Ripple then moved to purchase XRP in large numbers once its value began to rise sparked suspicion that the company had intended to profit from price rises in XRP. If that is true, then the sale of XRP could be considered unregistered securities offering under US law.
What Ripple Says
There are claims that the SEC has been unfairly applying the definition of "security" to virtual currencies. It would cast doubt on the commission's power and legitimacy, not to mention sully its reputation. Ripple, in particular has emphasized some of the connections between members of the SEC and other cryptocurrency organizations, especially Ethereum. While there is still little proof of these claims, it cannot be ignored that such accusations exist. At any rate, this new SEC decision may affect all digital currencies and the ICO market in general.
It is true that cryptocurrencies pose a significant risk to investors and consumers of financial products. A recent study has shown that there was a sevenfold increase in investigations involving ICOs between 2015 and 2017, and the SEC has brought lawsuits against a number of companies in recent months.
While some believe that the SEC is showing favoritism towards Ethereum, that is obviously subjective. This is especially so since Ethereum initially funded its operations with an ICO, which would absolutely be considered a security. The SEC has claimed that Ethereum currently operates in a decentralized manner, which disqualifies it from securities regulation, but if that's the case, Ripple questions why XRP is being attacked.
Ripple is also denying any prior notice that their actions were unlawful, despite the fact that they are accused of a number of securities violations. The SEC has revealed recently that before bringing its case, it did not establish whether XRP should be labelled a security.
Conclusion
XRP still keeps its head held high no matter the public scrutiny it takes from the media and the SEC. Ripple is still a great project that may reshape the way transactions are made - but it MUST outpace its other competing technologies like Solana, Avalanche and Polygon if it aims to keep up with the other top coins. That said, were it not for the SEC harassment, XRP would be at more than $10 today. Yet, that price goal is still achievable given that supporters remain strong. If more companies will start implementing XRP’s technology, then anything that the SEC will throw towards Ripple becomes irrelevant.
At the end of the XRP price prediction for 2022, we can conclude that XRP can even reach more than $2 as long as Bitcoin continues to rise. Yet, it can still go to a more significant bottom as low as $0.7 if the bears overrun the market. Overall, it is up to you whether you want to risk your money on Ripple and your faithfulness towards its technology. Ultimately, you must manage your losses and the amount of money you are willing to lose.
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