Chris Larsen, former CEO and executive chairman of Ripple (XRP) now the fifth wealthiest person in the US with his cryptocurrencies rise.
Ripple is a cryptocurrency that is being traded by investors and gamblers all around the world, which made this digital coin rise to a value of $3.84. Since Larsen holds 5.12billion coins, his value automatically goes up to $19.92 billion. He also holds 17% of Ripple shares, which adds to his net value and brings him to $59.6 billion. Ripple still holds 61% of the “coin” which means it holds 61 billion coins.
Now, there is a lot of talk on the web as to which cryptocurrency will be the next “digital god” of the coin. With Bitcoin, Ethereum and Ripple as well as a plethora of other coins al competing for top dog place. However, unlike legal currency, the big difference between cryptocurrencies and legal tender is that a “bitcoin” can disappear, become worthless while a real currency will retain its value even during devaluations and inflation.
Let’s take a look at Ripple. Ripple is a blockchain transaction platform used by financial institutions for speeding up their settlement infrastructure technology. Basically, blockchain is a technology platform that is used to create public ledger transaction systems. Each use of a node in the chain, which is a person’s PC, is paid for in “coin.” The larger the blockchain, the more power it has and the greater its “payment” trading power. This is why the press is stating that Ripple could outdo bitcoin. Basically, they are claiming that one platform will outdo another, and the trading value of the larger platform can devalue the weaker one. Cryptocurrency is not a coin, it is a commodity, and it gets its value from the number of real currency people are willing to trade it for.
Since cryptocurrency is only the “asset” that is traded for the use of a blockchain node, we will see thousands of “coins” emerging as more blockchain platforms evolve. In fact, unless one company becomes a market leader like Microsoft is to operating systems, then there will be many coins available at every given time. This is the future we can expect, since blockchain platforms can be used for many different operations, and not one company has a monopoly on the market. Add to this the tradability of cryptocurrency, and what we will eventually see is a regulated commodity market, where the value of the coin will be in direct relation to the size and scope of its reach.
In other words, the current volatility of the market is the birth pains of a new entity. The cryptocurrency exchange, what I term the “CCEX” that will grow alongside the FOREX. The new exchange will be a regulated hub which decides the exchange rates of the different cryptocurrencies.
Conclusions: there are two ways to become a cryptocurrency billionaire.
1. Develop a leading blockchain platform and sell it to as many financial institutions and business as possible.
2. Buy as many variant currencies in their infancy and hope one makes it big.