I hate Ripple: Is a wolf in the skin of a sheep?
Cryptocurrency purists have always judged new currencies for some important factors. In addition to that list, there has always been decentralization. However, one of the largest currencies in the cryptocurrency market has been hidden from view with its centralized nature. But, its recent boom that saw it end last year as one of the best cryptographic assets has seen a lot of hatred accumulate.
What is causing Ripple in the market?
Ripple, a token created by the company of the same name that aims to facilitate transfers between major financial corporations. In this objective, it has been very successful in 2017 with the collaboration of some important banks.
In spite of working with the central banks, it is the centralized nature that has many in a state of war. When the system was created in 2013, the development team eliminated many of the key functions found in most other cryptocurrencies.
This was done so that the token could be oriented towards these main financial institutions, which is good and probably necessary, but it becomes problematic when considering Ripple in the same boat as Bitcoin and other highly decentralized digital currencies.
“It’s not a cryptocurrency”
Many in the community, including creators of other currencies, criticized Ripple’s definition as cryptocurrency.
“For the most part, I’m not frustrated or angry with Ripple, I’m frustrated with the general lack of community knowledge these days (ie, Ripple is a symptom, but not the problem itself),” said the user. Reddit thieflar, a moderator of the Bitcoin subreddit, tells Inverse.
“The fact that Ripple is labeled as a” cryptocurrency “and included in sites like CoinMarketCap has been, for the most part, erroneous and inaccurate for many years,” Thieflar adds.
The creator of Litecoin, Charlie Lee, has said he does not think Ripple should even be considered a cryptocurrency.
Despite the mixed opinions of Ripple, it still made big gains in 2017, rising 36,000 percent. This caused that its market capitalization pushed the currency to a second place in Coinmarketcap for a period.
However, even this award has been criticized.
“It seems that the multi-year cryptocurrency bull market finally reached a point where newcomers have been buying indiscriminately, without understanding anything of what they are buying other than just believing that ‘it’s a cryptocurrency so you can make money with it’ , and Ripple managed to find herself in madness, “continues thieflar.
Interestingly, Ripple accepts that you should not buy indiscriminately to try to make money with the profits.
“Liquidity providers and private exchanges may choose to maintain an additional XRP for trading, and Ripple (the company) does not promote XRP as a speculative investment,” he says in his gateway guide.