Not every cryptocurrency uses the standard concept that manages every digital coin. Even this newborn technology has its “forks,” and one of them is Ripple, which is proving that cryptocurrency is a scam or casino chip, and not a real currency at all.
Bitcoin, Ethereum, and other standard blockchain based currencies are finite and have a lifespan; they are created through mining, which is a nice term for stating that a member of the blockchain “public ledger” will use his/her PC (or special mining CPU) for authorizing “hashing” transactions. A transaction on a blockchain has to be authorized, and this is performed by a miner. The miner gets paid for every transaction they authorize in an increment of bitcoin, and that is when the bitcoin is born.
Ripple is not “born” or created by miners. It was created by Ripple company, who minted 100 billion company coins, or what I term casino chips. These house chips called “Ripple” were released on the market as a lending asset for the company to raise funds in what is termed an ICO. ICO’s are when companies like Ripple that develop a blockchain based technology, offer to investors instead of stocks or other regulated investment assets. However, this is not a loan either, since there is no lending mechanism that forces “Ripple” to buy back the coin at its original loan value.
Ripple’s scam is that most people regard the coin as a cryptocurrency, but in fact, it is no such thing, it is merely another version of a casino chip, and it has made Ripple executive immediate billionaires. What is disconcerting being the fact that most software development companies need to work hard to develop a product, market and sell it, and hope that they become successfully accepted by clients and the market, before some giant comes along and buys them out or before their value is created due to the size and projected profitability of their technology.
Ripple’s “sell” is that they are a blockchain company that provides platforms for banks and financial institutions, what they didn’t say is that their coin is not blockchain action based, it’s just a bit of free-standing code that resembles a real cryptocurrency code. In other words, it might look like gold, feel like gold but it isn’t real gold, its fool’s gold.
What adds insult to injury is the fact that Ripple released only 38 billion coins which means it still owns and controls 62 billion coins. In other words, it can saturate the market with more coins, cashing in on the fake cryptocurrency and laughing as they “steal” money for a product that has yet to prove its efficiency and profitability. Basically, Ripple is printing its own money, and people are buying it with hard cash, and this gives Ripple’s owners value. Imagine if Twitter decided to create a Tweetcoin using these same principles, since Twitter is a profitable company it would be highly tradeable, but offer no security to its investors. This is a great way to circumvent all regulated means of capital investment.
The Bottom line: Ripple is not a cryptocurrency, it is a Ripple’s way to get cash out of investors and speculators without having actually to owe a debt. In other words, buying Ripple is not buying a loan or company stock, it is buying a “casino chip” and gambling with it online by trading it on binary platforms. Hoarding it will be self-defeating since the probability of deflation is high due to the large stock of Ripple coin readily available for distribution by the company.
Personal Take: The cryptocurrency market is where companies create a private coin, hope speculators are daft enough to buy in, and then wait for the coin to be traded against other cryptocurrencies on Binary and CCEX (FOREX for Cryptocurrencies) exchanges. Over time, and since the currency is finite, the demand should outgrow the supply leading to an increase in coin value. Basically, it’s a virtual game that is succeeding, just as the 1990’s internet technology bubble succeeded in raising exorbitant amounts of money for software companies that promised the next “Google” like results before the bubble burst when investors realized that the internet is not about immediate profit.
The bubble in cryptocurrency will only burst when people stop buying into it, which won’t happen for a while since everyone likes to fantasize about becoming a billionaire and that can only happen when you invest in a coin at $0.0001 and sell it three years later at a value of $1.20 or maybe at $16,000. With over 6 billion possible investors, and only a few thousand companies providing cryptocurrencies, I personally believe that companies like Ripple will start to appear in the thousands, offering fake coins that are not blockchain reliant, so long as they can be traded on an exchange, they will have value. The answer to success has always been in marketing, and cryptocurrency markets exceptionally well.
