Hello everyone, do you want to know if Ripple can make you a millionaire? How many XRP is needed to make it happen? Which problems does Ripple solve?
It is frustrating to know that the opportunity was so close, but you missed it. You hear this a lot - "if you would invest just $3000 into XRP back in 2017 and sell it at peak level in 2018, then you could've made a million dollars". Same examples are with Bitcoin and many other coins. But you shouldn't think like that. Don’t concentrate on what was missed, but think on new opportunities.
In this article you will know how many XRP you need today to become a millionaire tomorrow. How XRP can skyrocket and become the most used currency on the planet, and what is most believable evolution scenario for XRP. You will also learn the active HODLer strategy which allows you to earn on market volatility and still hold majority of your investments.
What is XRP?
XRP is not Ripple, XRP is cryptocurrency made by Ripple organization. Another Ripple product is RippleNet which is a decentralized global network of banks and payment providers, that is connected through Ripple's distributed financial technology. RippleNet can use XRP as a mediator currency but not only, many other currencies and cryptocurrencies can be used.
The RippleNet platform is an open source protocol which is designed to allow fast and cheap transactions. The goal is to take over all the international transactions worldwide. This platform allows to make payments in any currency with a fee of just $0.00001. Basically, it is free, the fee is needed to prevent DDos attacks. XRP acts as a mediator currency between those being exchanged, this is why there is no any commission. Each side just buy or sell XRP without a need to transfer money or currency. This concept is extremely powerful and lays in a majority of cryptocurrency fundamentals. Ripple just provides a platform for banking systems that easily integrate with it.
GET 1 MILLION
Now when you know the real power of Ripple, let's talk on how you can become a millionaire with XPR, which is kind of associated with Ripple. Current XRP market cap is $11,8 Billion and supply is 43,7 Billion units, which gives us approximately 27 cents per coin. Let's compare the XRP market cap with other market players: Bitcoin, all cryptocurrencies, USD and gold. Let's imagine that in 2-3 years XRP achieves all its goals and adopts masses to use it for most transactions in the world and its market cap reach gold level of 7,8 Trillion dollars. And the supply of XRP reach 70 billion units. Then the price would be about $110 which mean around 400X of current price. In this case you need to invest just $2500 to become a millionaire.
Sounds too optimistic? I think so. Let’s take another, more realistic case, when XRP reach market cap of $280 Billion with supply of 100 Billion units. In this case the price of XRP would be just $2.8 which gives us 10x. So, you should invest $100 000 to become millionaire this way.
But hey, can you imagine you have invested in Ripple 2 and a half grand and things start to go up the hill. You see how your 2 and a half become 25, then 100 grands. Can you imagine you don't touch your investments at all, risking to lose everything? Me not! So, all those hyped phrases do not make sense. Ok you pass 2x, maybe 5x but you definitely will start to take profit out on 10x and more.
All this lead to a conclusion, that each investment does not make sense without a good cash out strategy. If you like to be a HODLer like me, then good strategy would be to take out 4% each time market gets 20% increase in price. And same with 20% price drop where you buy 4% back. In this case you will earn a little on market volatility and will hold a majority of investment. This way your each cash out amount will grow with the price and you can repeat the cash out process infinitely.
Let’s see how it works. We have base investment of $2500. Then the asset goes up by 20% and we cash out 4%. The situation repeats 10 times so we have cashed out almost $3000 in total. Then the asset goes down by 20% and we buy 4% of our investment back. Again - it repeats 10 times and we have invested around $2000 in total. As you can see, we have almost the same asset amount that we had initially, but have 1 grand on hands. You can take 0.2% cash out for every 1% increase in price and it will be equivalent of 4% for 20% market change or you can increase cash out percent if you want to be more aggressive with cash out. Basically, just create the formula which will show you what amount is currently to be sold or bought. The formula will just show you for how many % the current price of asset differs of your base asset price. Then just multiply 0.02 with % count. And remember to reset base price when you buy or sell the asset. This is just an example to test the strategy, in real life the volatility is very chaotic.
Chances On Success
Why XRP hasn’t many chances to grow dramatically? Well, first of all it is not centralized like Bitcoin or Ethereum. The fact that the supply is controlled by Ripple and is very huge (100 Billion units), does not play well. The RippleNet can work without XPR at all, so there is no anything unique about XPR, which can't be said about RippleNet. According to WalletInvestor.com the price of XRP may drop to as low as four cents. They also believe the price will recover to around $0.46 by the end of 2020, $0.58 in 2021, and over $2.00 in 2025. In opposite Longforecast.com think the average price of XRP will be $0.26 in 2020 and will drop significantly in 2021 to $0.15.
At the end of the day only demand of XRP will dictate its destiny and the success of Ripple and RippleNet will definitely help.