Speculation Around XRP: Is It A True Cryptocurrency?
XRP has always been surrounded with speculation, it has been the topic of much criticism on exactly where XRP stands and it’s status as a cryptocurrency. There are several experts and analysts who have said that XRP isn’t a true cryptocurrency and numerous reasons including the fact that the token doesn’t have any miners or mining capabilities compared to say, Bitcoin. But unlike Bitcoin, Litecoin, Ethereum and other popular cryptocurrencies, XRP isn’t mined but is powered through a streamlined blockchain to be fast and reliable.
The CEO of Elpis Investment, Anatoly Castella has said that the XRP token is far from the cryptocurrency family on grounds that:
“Its centralized blockchain and all XRP was mined at once. Ripple resembles a Fintech platform combining the best elements of fiat money and blockchain cryptocurrency. It is ‘Digital Fiat,’ not a cryptocurrency.”
After Bitcoin entered the digital and financial market, people who found interest in it were able to gain access to them in two ways: mine or buy. The fact that Bitcoin was a decentralised and central bank or parent firm has no hand in its operation made it one of a kind and so different from traditional issued currencies.
There are other known digital currencies as well as Bitcoin which are known by their unique identity of being decentralised currencies, and being able to be mined like gold. This is where XRP becomes the odd one among the popular digital currencies.
As reported by ZyCrypto, the majority of XRP is held by its parent company, the Ripple Foundation which is different compared to other cryptocurrencies. 100 billion units were produced and 40 billion has been so far made available into the market. The remaining XRP is tucked away safely in a smart contract that only makes some of it to be available on a monthly basis.
There is no doubt that XRP has been one of the most talked about assets during 2018. Analysts and critics alike still continue to slate the currency claiming that the token is a “centralized coin and controlled by its Parent company.” Craig Wright has also been taking a few digs at XRP by calling it a “security and biggest scam in the crypto space” which is where the argument of being in the cryptocurrency class begins.
What are your thoughts? Let us know what you think down below!
Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.