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Positive and negative sides of the XRP token as an investment asset


XRP is the second largest altcoin by market cap and has been singled out by many as one of the most potential investible assets on the market. However, the digital asset has not lived up to expectations after posting a record high of $ 3.84 on January 4, 2018.

Despite the asset's ongoing fight to break its resistance point to enter the $ 0.2 level, and subsequently the $ 0.3 price zone, some experts say investors need a lot of stability as there is still hope that the asset will hit rocks. green. This piece will look at why XRP is said to be unreliable enough as an invertible asset and also why others have a different opinion.

Negative side

XRP has been criticized for not operating online with other cryptocurrencies. Experts claim that the digital asset is not completely decentralized and was designed for banks, which means that its price stability is treated differently than Bitcoin.

Cryptocurrencies with a smaller circulating supply react to change faster and are suitable for investment than those with a larger circulating supply. This questions the digital asset as an invertible asset. Its recent price formation has been a confirmation of this analogy considering the fact that its value has struggled enough and has seen a minor price change since 1 billion XRP is released to the market each month.

The investment idea is to buy at a cheaper price and sell at a higher price. However, the slow rate of its price change is a challenge for XRP investors.

Positive side

On the other hand, XRP is a solid asset for portfolio diversification. Its price is very cheap and regardless of the large offer in circulation, it can generate profits for investors who buy in large quantities. Assets like XRP must be sourced in large quantities to produce tremendous returns even with a minor price change.

Additionally, there have been a number of partnership agreements with Ripple that are expected to cause a change in XRP's market valuation. However, the change should be large enough to return the price to one dollar.

XRP is highly dependent on Bitcoin's price as well, and this is another optimism for investors. However, the price change, in response to the spreading effect of any expected Bitcoin bullfight, will not be as massive as that of Dash and Bitcoin Cash in late 2017 through early 2018 due to the increase in the size of the bullfight. existing circulating supply.

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