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spoiler: probably not. Looking the structure of ripple on, it can be shown that excessive price increases, the ripple course are unlikely.
The trader does not know the enthusiastic looks into the crystal ball: ripple will reach in the April 100 euro, 1000 brand comes next year! is the opposite of FUD HEC: hype, enthusiasm and certainty. One can of hype and enthusiasm (false) security then just as quickly carried away, as by his opponent. But just when ripple the sheer amount of circulating XRP are above all some reasons against a too rapid price increase,.
Why are there so many XRP?
With 38, 7 billion XRP the circulating amount of ripple token exceeds the of Bitcoin by a more than 2000-faches. In addition, that ripple still some (to be more precise about 61.4 billion) holding token in the hindquarters.
This high amount of existing token is due to the intended use cases. Ripple is not like about bit coin, the end-user oriented, but companies such as payment service bar, financial institutions and banks. XRP, the currency itself, is rather as means of payment service provider: it transfers any kind of values.
In addition 1,500 transactions per second are backed up by the infrastructure of the network. Ripple is a network that wants to guarantee fast transactions. (Here only the most relevant details should be disclosed, to the better understanding we recommend our tutorial ). Users pay a fee that is collected but not directly for the carrying out of transactions, rather the XRP tokens will be destroyed.
in the past was the company repeatedly in criticism – so was a whole contingent of 100 billion token more than half, 61.4 billion in the hands of the developer. According to own statements they have withheld them, to secure liquidity, confidence and applicability.
To secure this end better, they have late last year introduced an escrow system . So they have a say, “digital bunker” the number of 55 billion XRP deposited. They have divided them into 55 packages, of which maximum pour out one per month. Among other things, to compensate ripple to burnt (which only a minimum fraction of total – quantity be), but also incentives for new investors to create. All XRP not needed for these purposes are fed back into the escrow system and later lifted.
Once at 100 euros will the ripple course be?
Due to the intended use cases and to ensure a high degree of liquidity and thus also stability, the ripple network requires a high volume of token. And exactly this point makes it very unlikely that the ripple rate rises to 100 euros. (Was the possibility of inflation here aside).
What would have to happen so, that a ripple is worth 100 euros? Here are some simple steps to make.
Just 38.7 billion XRP at a price of 1.01 euros circulating at the time of publication, the market capitalization amounted to 39.1 billion euros.
At a price of 100 euro per ripple we would be a market capitalization of $ 3.8 trillion (these are 12 points behind the 3). This is about 25,5-Fache money of the current market capitalization of Bitcoin.
In other words: to make possible a ripple price of 100 euros, all Kryptowährungen currently listed in Coinmarketcap should dump their amounts of money into a pot, and multiply to a titled 8 way, to make enough euro available to all existing ripple to pay. Unlikely.
But we also take a look from the crypto world and look at Stock Exchange on the . Here based on market capitalization would have to add the following companies (no joke!) their market capitalization to get close to 3.8 trillion euros: Apple (702,35 billion), Microsoft (584,14 billion), Amazon (543,87 billion), JP Morgan Chase (324,9 billion ), (241,2 billion), BP (234,1 billion), Coca Cola (166,45 billion), Boeing (164,55 billion), Disney Nestle 136,05 billion (217,37 billion), shell), McDonalds (114,46 billion), SAP (112,68 billion), Siemens (102.9 billion), LOREAL (102,23 billion) and Netflix (95,66 billion). Pretty unlikely.
it is especially the applicability relating to the infrastructure of the network, which is overly large price increases unlikely. Finally ripple in competition with the popular payment processors such as Visa & Co, by guaranteeing low transaction costs. Since these are calculated from the course, it is not in the interest of ripple, to drive them. By they distribute additional tokens, they can prevent that. In addition, the relationship between circulating amount of tokens and market capitalisation making it possible here is ultimately realistic to look at the thing.
One wonders now, understandably, what prospects are realistic. Would ripple now in first place in terms of market capitalization slide and overtake Bitcoin, would rise to a 3,8-Faches in the market capitalization of ripples. The ripple class would then be 3.88 euros.