Why investing in the 3rd rank cryptocurrency is a smart move for 2021
Everyone is talking about cryptocurrency these days, and with good reason. Bitcoin, the first cryptocurrency, hit an all-time high of $64,000 in April 2021. However, not many people know about the value that the third-rank cryptocurrency holds. In this article, we’ll be discussing why investing in the 3rd rank cryptocurrency is a smart move for 2021.
What is the 3rd rank cryptocurrency?
Before we start discussing why the third-rank cryptocurrency is a smart move, let’s first discuss what it is. Ripple (XRP) is currently ranked third by market cap, with a market cap of $61 billion as of May 2021. Ripple is a digital payment protocol that was created to facilitate instant and low-cost international money transfers.
The value of Ripple
One of the main reasons why investing in Ripple is a smart move for 2021 is because of its potential for growth. Ripple has partnerships with over 200 financial institutions across the world, including Santander and American Express. This means that many banks and financial institutions are using Ripple’s technology to facilitate their international payments, and this number is only expected to increase.
Another valuable factor is the efficiency that Ripple offers. Ripple allows for almost instant cross-border transactions, taking only a few seconds to complete, which is much faster than traditional banking methods. It’s also low-cost, which means that the amount of money lost to transaction fees is significantly reduced.
Regulatory concerns
One concern that people have about Ripple is regulatory concerns. In December 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging that Ripple had conducted an unregistered securities offering. This caused the value of Ripple to plummet. However, Ripple has stated that they plan to fight the charges, and they have also gained support from the cryptocurrency community.
Ripple’s potential for growth
Despite the regulatory concerns, the potential for growth of Ripple is still significant. Ripple is expected to continue to grow as a facilitator of international payments, and its partnerships with financial institutions will only become more extensive. Additionally, Ripple’s low-cost and efficient payment options make it a compelling choice for those looking to make cross-border transactions.
Conclusion
Investing in the third rank cryptocurrency, Ripple, could be a smart move for 2021. With its partnerships with over 200 financial institutions, its low-cost and efficient payment options, and its potential for growth, Ripple offers a promising future to investors. Although there are regulatory concerns, Ripple’s fight against the charges and the support they’ve gained from the cryptocurrency community make it a viable option for investors looking to diversify their portfolios.
