The Ripple value (XRP) is supported by its utility value in the payment network. Ripple is a payment system that works like Bitcoin. It allows users to perform transactions in seconds. All transactions are secure and verified using the latest technology. But the new currency has unique features of its own.
There are several factors that affect Ripple value. These give utility value to the payment network.
Ripple Value Factors
Security
First is security. Each transaction that goes through the payment network needs a transaction fee. This puts a mark on the payment before sending. It places a cost on each transaction, which prevents threats and attacks. This value provides the network with security. It is paid in XRP and gives Ripple value.
Bridge Currency
Bridge currency is second. It is another attractive trait of XRP. Auto-Bridging was available with the RipplD version 0.28.00. This is useful if no direct exchange is available between two currencies. The network’s exchange allows uses to trade freely against other currencies. This allows quick conversions in seconds. It also serves as exposure of the network to liquidity and better Ripple value rates.
No Counterparty
Lastly, there is no counterparty. XRP is the only asset in the network not supported by the issuer. Everything on the ledger is XRP or issued by a real world entity. This gives the Ripple value an advantage. It has limited risk and. No account is prone to freezing. All of this makes Ripple the only asset that could serve as a bridge currency.
The future for Ripple
The highest point for XRP was around $0.09. Unlike Bitcoin and other altcoins, there are billions of XRP. All of this is held by the founders and administrators. This makes the supply larger that Bitcoin. But what most don’t realize is that this is only comparable if divisibility is considered.
Since the introduction of Ripple, the new currency received good words from various fields. It is helpful in both financial and mainstream aspects.
The Ripple value has a fixed supply. White it does not have the same level of demand compared to Bitcoin, it covers a specific area of the market. There are a few features that only Ripple can provide. The currency links to the utility of value to the entire Ripple payment network.
The eventual adoption of excess supply can greatly improve Ripple value exposure. Add to this the increase in speculation as the system improves. There are still plenty of factors that could come into play.
