This article compares and contrasts the potential returns on Bitcoin and Ripple (XRP) in the future. To be honest, I have never really understood the craze or uses for these cryptocurrencies. I always feel like the people who write about them are fairly biased/optimistic. For instance, this article mentions that Bitcoin could have a 140% return on investment if its price were to return to its previous high of $20,000. At least for now, I feel that that is an unachievable goal in the near future. XRP is similar in the sense that it reached a high price of $3.30, yet it is currently trading at $0.70. I think this article reveals the high level of risks in these cryptocurrencies. In addition, the endowment effect is very evident, as the crypto owners and article writers ascribe more value to things merely because they own them. What do you think about cryptocurrencies?
https://www.forbes.com/sites/naeemaslam/2018/04/20/bitcoin-is-the-religion-but-ripple-would-pack-higher-return/#605f6f25504b
7 comments:
I have many of the same feelings. People are so optimistic about these cryptocurrencies, but I too am confused as to how exactly they carry value. Due to the recent downturn within the market, I believe the bubble will burst at some point. The 140% ROI for Bitcoin seems to be too outlandish, and I also believe it will not formulate.
With increased support from banks ripple has a great base to grow from. Since this would reduce the cost of the massive transactions the banks handle it could be used all be around the world. As a result this should promise a stronger return since as you stated bitcoin has went on a run already
I agree with Chandler, many banks have started investing in ripple specifically. In December 2017, American Express and Spain's Banco Satander's UK unit were collaborating to test the blockchain payment system- if this is adopted by banks around the world this would allow payments to get transferred instantly rather than waiting a few days as is normal for international bank transfers which would definitely make ripple's value go up.
While bitcoin is certainly the cause of the hype to the cryptocurrency boom, assets like Ripple and Ethereum hold the key to long term growth potential. The real value behind this new asset class is not the asset themselves but rather the blockchain technology behind them. I believe that Ethereum in particular has the most applicable value past holding economic value in the form of an asset.
I agree with Kevin. It will be interesting to see how Bitcoin does in the future will how much it has been talked about the past 6 months
I believe that the bitcoin should follow the demand and supply curve. If the demand of bitcoin is high, the price of bitcoin would increase, but if no one wants bitcoin, the price would fell. The demand of bitcoin, personally, I believe it depends on the policies of countries. Since only all the countries allow the transaction of bitcoin, the using area is limited. We can’t buy anything by using bitcoin. Unlike American dollar, people could use it to buy anything in the United States, and people could use it to exchange for foreign currencies easily, but it is hard to be done by bitcoins. So, I believe there is demand for bitcoin, but it is not much unless more countries promote it.
I believe crypto currencies are a disease to the US and global economy. I have read more than one source claiming over 50% of Bitcoin's investors could not define what block chain technology is. One of Warren Buffet's famous principles of investing is to never invest in something you do not understand. I think more people need to heed this advice.
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