Contemplating an Investment in XRP Given Its Current Price Below $3?
In the midst of Bitcoin's soaring past $100,000, other cryptos like Solana, Cardano, and Dogecoin have their own surge. Among these, XRP has particularly gained attention, skyrocketing about 400% since November 2021. Recently, it even breached $2.70, only to retreat to around $2.30 now. But should you buy XRP while it's still below $3?
Trump's Win and XRP's Hope
XRP enthusiasts welcomed Trump's election win in November 2020, as he made pro-crypto statements during his campaign. The prospect of a "crypto capital of the planet" under a second Trump presidency gave hope to many cryptocurrencies, especially XRP.
While Trump-friendly regulators could benefit many cryptos, XRP might reap the biggest rewards. The token was under scrutiny by Biden's SEC, which claimed its sales violated securities laws and even filed a lawsuit. Trump's SEC is expected to be more favorable towards XRP, with Paul Atkins, a pro-crypto pick, set to replace the current chair, Gary Gensler.
Clearing Regulations and the Future
A friendlier SEC would indeed be great for XRP. If the SEC doesn't appeal the recent judge's ruling in its favor, XRP's price is likely to rise. However, while regulatory clarity is a positive, I'm not convinced of its long-term value.
XRP's value proposition lies in its ability to speed up and cheapen banking transactions. Currently, these generate over $193 billion in fees annually. However, the banking industry's reluctance to change its practices makes XRP's future uncertain. Even if the industry adopts XRP's technology, it might choose to use other currencies instead.
XRP: A Short-Term Bet
Despite these challenges, XRP could still see a short-term surge to $3 or more, thanks to regulatory resolutions and positive sentiments. But I'm skeptical about its long-term prospects. For serious investors, Bitcoin still seems like a safer bet, with greater potential to outperform the market for years to come.
- Given the potential regulatory changes under a Trump-friendly SEC, investing in XRP could significantly increase in value by 2023, as Trump's pick for SEC chair, Paul Atkins, is known to be pro-crypto.
- Finance experts propose that XRP's catalysts for growth include its potential to revolutionize the finance industry by speeding up and reducing banking transaction fees, which currently total over $193 billion annually.
- In the realm of investing, many financiers view XRP as a short-term opportunity due to potential regulatory resolutions and positive sentiments, with some predicting that the token could surpass $3 in the near future.
- Despite XRP's strong points, investors should approach this currency with caution in the long-term, as the banking industry's hesitance to fully adopt XRP's technology could limit its growth and potential to outperform the market as a whole, with Bitcoin remaining a safer investment option for serious long-term investors.
