Is Ripple the new Bitcoin?

By Bfab | Good vibes | 24 Nov 2020

XRP has significantly surged in the last few days. Some crypto analysts even say that the best is yet to come. Is it still time to buy, or is it too late now and we should wait before buying it? Any technical analysis will show that it has been too bullish, and hence it is likely that a correction will happen.

If you look at the fundamentals, it is more than that:

1) The Flare network SPARK airdrop is the main reason of this increase, and it may last till December 12. After this date, XRP might dump. The only good news there is that to benefit from this airdrop you just have to hold XRP on a wallet supporting this airdrop, such as Celsius for instance. Too easy.

2) Flare has DeFi projects. That also makes XRP bullish. We can expect that the fees on this network will be much lower than on Ethereum, as long as the XRP remains cheap, which makes no doubt. However, we still do not know how much we can earn with these DeFi projects. It looks a bit vague.

3) There are regularly bullish news about XRP. The latest one concerns Bank of America... which sounds promising. However, it is not the first time, this kind of news has to be carefully handled, that's the usual way to increase the apparent value of the coin. All the well-known ones do that, especially XRP.

4) More than 65% of XRP is owned by the top 100 accounts. This is a major drawback for XRP. Too much centralized. To be very cautiously watched.

5) XRP is often used to transfer assets from a wallet to another one, due to its low transaction fees. This is one of the main advantages of XRP. However, there are some other good coins to do that, e.g. NEO (no fee at all...).

In summary, there are several reasons to think that XRP will continue to grow, but the main reason is the Spark airdrop. Therefore, I would focus on that one: as the owners of XRP will receive a Spark token at 1:1 ratio, how much will the Spark token cost? If it is less than one cent, what's the point in holding XRP until December 12 when 1 XRP costs 66 cents... You can earn more than that by trading. And on top of that, what will happen after December 12 once the screenshots has been taken? This airdrop looks like a good ad for Ripple. However, it does mean Ripple is the new Bitcoin.

Referral links: