Ripple (XRP), Not Bitcoin, Has True Utility and is Unfairly Priced: Analyst

Ripple XRP
Image Courtesy of Pixabay

Ripple (XRP), Not Bitcoin, Has True Utility and is Unfairly Priced: Analyst

XRP, the native currency of the Ripple ledger, has utility and is unfairly priced because of its correlation with Bitcoin. This is the view of one cryptocurrency analyst and an answer to his preview of Bitcoin’s utility, its true market valuation, and its chances of inching higher after a mixed 2019.

On Demand Liquidity Gives XRP its Utility

The analyst is confident that XRP, the coin that gives Ripple Inc. its edge as a better alternative to SWIFT in global remittance, could be undervalued given its use as an On-Demand Liquidity agent. Ripple Inc., under the guidance of Brad Garlinghouse, its CEO, is valued at $10 billion.

Recently, the company stopped institutions from direct purchases of XRP and instead directed them to the secondary market.

This was interpreted as positive by XRP holders who for a long time have been complaining of Ripple Inc. wholesale liquidation of the token despite sliding prices and a depressed market.

Taking to Twitter, the analyst had this to say:

“XRP has real utility, and therefore, it has a measurable value. However, it isn’t fairly priced, because it trades in tandem with BTC, an asset that has no real utility. So, I think XRP could be undervalued as a result.”

Bitcoin Has its benefits but Lacks Use

It is his view that Bitcoin, while crucial for the ecosystem and watched by governments and deep pocketed players, lacks utility.

He argues that while Bitcoin has turned out to the most valuable because of its speculative nature—and the reason the coin soared to $20,000 at the height of 2017 ICO mania, will crumble if it doesn’t find use.

The analyst highlights several benefits of the coin as its censorship resistance advantages and a shield for careless monetary policies.

“BTC like any asset is worth exactly what investors are willing to pay for it at a given point in time. BTC is not a utility coin like XRP. BTC is a SoV vs currency. BTC is us not having to put up with shitty monetary policy, excessive quantative easing and exponential LoV.”

In the beginning of the year, and as part of its decentralization strategy, Ripple Inc. released 1 billion XRP from escrow worth much to the chagrin of the easily agitated XRP army.

Summary
Ripple (XRP), Not Bitcoin, Has True Utility and is Unfairly Priced: Analyst
Article Name
Ripple (XRP), Not Bitcoin, Has True Utility and is Unfairly Priced: Analyst
Description
XRP, the native currency of the Ripple ledger, has utility and is unfairly priced because of its correlation with Bitcoin.
Author
Publisher Name
CoinGape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich

Post your comment...
Dalmas Ngetich 177 Articles

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich

Follow Dalmas @