The post Top Reasons Why XRP Is Your Best Bet For 2023 appeared first on Coinpedia Fintech News
Ripple’s XRP token fell substantially on Monday amid risk-averse macroeconomic inflows. According to CoinMarketCap, XRP/USD was last trading at $0.39, down 3.4% in 24 hours, marking a 7.0% reduction in the cryptocurrency’s market capitalization since last Friday.
The sell-off combined with the unfavorable macro factors was too much for the other altcoins to withstand, and they shattered. However, it is predicted that XRP may benefit from the current situation. In recent weeks, traditional risk assets (i.e. global stocks) have benefited from optimism that US inflation has peaked and the Fed would reduce its rate hikes.
This trend might continue if Fed policymakers’ remarks, like Jerome Powell’s speech on Wednesday, as well as the US job market numbers, spark fresh optimism.
To what extent, then, should investors celebrate or avoid XRP? Is buying Ripple’s token a good way to diversify your holdings? If the payment processing company wins its case against the SEC, are the shares expected to skyrocket?
Why XRP Should Be Part Of Your Portfolio In 2023
- A win against the odds: There are great hopes that Ripple will prevail in its legal battle with the Securities and Exchange Commission, even if the case might be dragging on for longer than most expected. It stands to reason that this might be a factor that propels the XRP market forward. The SEC views Ripple’s asset as a security token, but since it began its investigation in late 2020, it has not been able to substantiate this claim. As a result, the industry is placing a wager on the success of the payment mechanism.
- Lower cross-border payments: The digital currency was created to make value transfers both accessible and global. A nation under financial sanctions may use the Ripple system to send money abroad by converting its domestic currency into XRP.
- Swift Transfers: Theoretically, XRP can take the role of SWIFT in the banking industry. It serves as an exchange currency that enables business between banks. Ripple has also demonstrated that it can assist small enterprises in addition to huge institutions in solving their difficulties. Central bank digital currencies are yet another area of development for Ripple (CBDCs).
- Boon for Banks: Nonetheless, does this make XRP a worthwhile asset? According to the reports, much will depend on how you personally invest in the cryptocurrency market. As was mentioned up top, the business behind XRP has banking system support as one of its primary motivations.
- Decentralization: A decentralized economy, on the other hand, seeks to eliminate that industry. Satoshi Nakamoto designed Bitcoin specifically so that people would not have to rely on banks any longer. It’s also worth noting that many of Ripple’s bank collaborations never materialized, especially once the legal battle with the SEC began. It might interest more investors in XRP.
Drawbacks of XRP’s decentralization theory:
- There is no conclusive evidence that even if they had materialized, the majority of them would have focused on Ripple’s solutions rather than XRP.
- As stablecoins like Tether and Litecoin are able to sustain their pricing better than XRP, it’s possible that the premise of selling tokens for foreign transfers is incorrect. In contrast, Ripple’s altcoin doesn’t stand out in the category because any cryptocurrency may be used to send money anywhere in the world.
- On the other hand, Bitcoin serves this purpose admirably, so there’s no reason to switch to a centralized cryptocurrency. Investors who value decentralization may want to steer clear of XRP and similar cryptocurrencies, but major corporations are an exception.
- The price of XRP would be affected by institutional investors’ interest in Ripple if the business won its case with the SEC.
David Gokhshtein Extends his support for Ripple
David Gokhstein, the founder of Gokhstein Media, explained on Twitter last week why he believes Ripple would ultimately triumph in court against the SEC regulator. First, this win will bring regulatory certainty to the crypto business. Despite suing Ripple and other cryptocurrency companies, the SEC has been criticized for lacking regulatory clarity.
Second, Gokhshtein wants to thank the XRP army for its patience while waiting for the legal issue between these two industry heavyweights to be resolved.
It appears that XRP has all the advantages it needs for 2023. Everyone is watching the court battle to forecast XRP’s future.