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Why we do not support nor invest in Ripple

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DISCLAIMER: What you are about to read is an opinion.  This article is for entertainment purposes only and is not meant to hurt the sentiments of anyone.  Since this is an opinion, it is entitled to be completely false. Ripple is top 3 cryptocurrency on the coinmarketcap as of this writing.  It has made a brief victory lap at number 2 at the end of 2017.  Invest in Ripple has also made a lot of people lot of money, even multi-millionaires.

Then why did we start this article’s title stating outright that we do not support Ripple.  Some might say we are sour for missing out the boat and some might say we are naive, both of which might be true, depending on who you ask.

For the very reason of being called out as jealous or naive or to avoid being attacked, we are going to place an additional disclaimer here.  This article is stitched together to be an opinion piece to welcome dialog rather than debate. What this means is, whether you agree or disagree with us, you are welcome to share your thoughts to ADD to this piece rather than to start a debate or crypto-war.

This article is stitched together to be an opinion piece to welcome dialog rather than debate.  

Having that out of the way, we will navigate this article under the below subject lines.

  • Emotional
    • Bankers greed, rehashed
    • Where art thou Privacy?
    • Media, in the pockets
  • Practical
    • Is XRP required?
    • Adoption and penetration
    • Fiat friendly
  • Crypto-technological
    • It’s not blockchain
    • It’s not innovative
    • It’s not crypto
    • It’s not decentralized
  • Why it may win?
    • Purported bitcoin contender
    • Superfast transactions
    • Active marketing team and social presence
    • Partnerships with financial institutions
  • Why it may lose?
  • Conclusion

Emotional:  Many crypto fans get emotional whenever the topic of Ripple comes along.  Lot of them had an opportunity to invest in Ripple when it was trading at .000 something.  Many individuals, like us, resisted the temptation because they understood what Ripple represents and stands for.

They were burned, brutally.

This added fuel to the fire.   Already scarred crypto public got even more pissed off because of how big and ugly Ripple was getting to be, same as rest of financial institutions space.  The very core of crypto revolution has been shaken up (and still continues to be) with the way Ripple has penetrated the market.  There are few more reasons that add to the resentment of crypto loyals.

 

  • Bankers greed, rehashed: Everything that happens in the technological space happens fast, however, fast in this context could be anything that happens in a decade or so.  It took more than few years for Blockbuster to be completely busted by NetFlix.

Bankers are slowly realizing that blockchain technology is here and will not go away.  Cryptocurrencies are here to stay and will not go away in spite of FUD they garner on the mainstream media.

Ripple is giving a way for bankers to ‘participate’ in this new technological revolution without ever touching or sniffing the blockchain or cryptocurrencies. In that regard, Ripple in our opinion is giving ammunition to big financial institutions to undermine blockchain technology and crypto currency space.

Ripple in our opinion is giving ammunition to big financial institutions to undermine blockchain technology and crypto currency space.

It became evident how low Ripple will stoop to when the news of it trying to ‘bribe’ Coinbase and Gemini exchanges came to limelight.  This is a warning sign of what happens when a centralized entity gets its hands on too much money and power.

It became evident how low Ripple will stoop to when the news of it trying to ‘bribe’ Coinbase and Gemini exchanges came to limelight. 

In our view, Ripple can empower greedy financial institutions to circumvent the full brunt of blockchain revolution and manipulate the crypto space and its technological advancements with the sheer power of money they sit on.  For this very reason, and keeping the spirit in which crypto space came to be, we are not big fans of Ripple.

  • Where art thou Privacy?

Ripple has settled with the Department of Justice to a fine of $700,000 and to cooperate in releasing the details of its customer base. You don’t trust us?  Make whatever you want to of this statement lifted directly from the Department of Justice’s portal

“Further, the remedial framework calls for external audits through the year 2020, enhancements to the Ripple protocol, increased transaction monitoring and an extensive review of historical activity.”

Mind you, we never recommend evasion of taxes or being involved in anything that is illegal.  We ourselves disclose and declare all our holdings to the respective tax authorities and encourage you to do the same

Crypto space provides ‘privacy’ as a choice (not as a means to evade) which is one of its key propositions and very fact that Ripple seems to have lost this along the way, at least in our interpretation, our conviction of staying away from Ripple becomes stronger.

  • Media, in the pockets

This one will be a complete ‘hunch’ based claim rather than a documented proof based one.  Unless of course, you follow mainstream media.

‘Bitcoin is a villain until CBOE enters the market.’

‘Bitcoin is very volatile until Goldman Sachs and NASDAQ create their own versions of cryptocurrency exchanges.’

‘Bitcoin is used for illegal activities and is criminal’s currency until futures are announced’.

Bitcoin this and bitcoin that, we have heard so much news (aka FUD) in the mainstream.

What you will fail to find on any mainstream media is comparatively negativity about Ripple.

No media pundits asked Ripple, “You are not a blockchain company and what you offer is nothing more than a SaaS, then why are you pretending to be a crypto and who gave you the right to create money out of thin air?”.

If this so-called media was unbiased, why would they throw shit at the king of all cryptos which started a revolution while never mentioning much negative about a non-blockchain based cryptocurrency.

Think for yourself.

  • Practical: Keeping our biased sentiment aside, even the practical aspects of Ripple fail to garner our interest. Below are few of our views in this respect.
  •  Is XRP required?

Ripple and its non-blockchain based technology may actually help financial institutions  figure out a way to circumvent the hurdles of international money transfers.

Ripple’s extensive partnerships, however, do not translate to use of XRP (Ripple’s native currency).

Ripple Labs doesn’t need to use XRP in its three products: xRapid, xVia and xCurrent offerings.  In fact, its own CEO says “The Interledger protocol that we use, connects perfectly well to any blockchain and any asset, it doesn’t only work with XRP, it’s very open.”

Institutions are still free to use fiat or any other form of exchange of value. The use of Ripple by its own creators, Ripple Labs, is at its infancy and most public announcements allude to the fact that XRP can be used but is not required.

  • Adoption and penetration

For Ripple to succeed, in spite of its existing boasted partnerships, it will need to beat SWIFT that has over 11,000 existing banking relationships.

Why would an existing business that has been operational for decades watch passively while a newbie takes over its bread and butter?

Beats us.

Big financial institutions will not exhibit loyalty and if SWIFT (or other platform) gives them an actual blockchain technology-based support and offers more than what Ripple can, they will jump the ship in a heartbeat.

Some might say that this same argument can be made for everything that is introduced on the blockchain.  Not quite.  What other projects on blockchain have and Ripple doesn’t is: blockchain and loyal crypto followers.

Also, some businesses do not need a blockchain disruption.  For example:

A business like facebook can be completely eliminated by a blockchain based social system that promises privacy, security for their data and reward for user content.  On the other hand, a video streaming service like NetFlix may never be replaced by this technology due to what NetFlix offers in entertainment space.

We are still trying to find strong reasons as to why SWIFT will sit on the sidelines while their business comes under attack by Ripple, OR, what stops from big financial institutions with fractional lending on their side from creating their own blockchain, OR, using Ripple as a SaaS model while they continue to use Fiat?

In each of these scenarios, in spite of adoption of the technology offered by Ripple Labs, Ripple currency itself sees no value.

Thoughts are welcome.

  • Fiat friendly

21 Trillion is missing from the Department of Defense’s books.

Read that line again.

It is a Trillion with a T, not a Billion (Billion is also a massive big deal).  21 Trillion dollars of unaccounted adjustment.  Only made possible because of current fiat system.

If these records were on blockchain platform, even a private one (for security purposes), this could have been almost entirely impossible.

Every single dollar (or dollar equivalent) would have been brought to account.

When every single penny is accounted for and is open for public to audit, can you imagine having a 21 TRILLION dollars surprise?

Blockchain technology may not be a panacea but it is definitely a massive solution to avoid this kind of issue from cropping up and even when they do, an easy detection.

Now, if Ripple is facilitating existing fiat system without disrupting it, is it truly what we need?

21 Trillion dollars!!!  Honestly, do we need another technological solution that enables the current broken fiat system or do we need a blockchain revolutionary solution?

  • Crypto-technological: Most of the people that know the origin of Bitcoin may remember the very reason why Bitcoin came into existence. 2009 Crash of the financial market.   The need for revamping the existing financial systems came about from the despair of the financial crash. Bitcoin’s emergence sprung from the 2009 crash which was (and proven to be so) due to the greed of big financial institutions.

 They were the ones that actually benefited from the misery of millions of individuals that were victims of the financial crisis, in the form of bailouts post-crash.  Keeping these basic issues aside, below are few points why we think Ripple deserves no place in the crypto revolution.

 It’s not blockchain

Contrary to being listed on coinmarketcap and being a contestant in the cryptocurrency and blockchain space, Ripple is not a blockchain in traditional sense.

In our view, it is nothing but a distributed ledger information sharing platform that is offered as a SaaS to big financial institutions.  In other words, Ripple’s adoption makes existing broken and crooked financial system faster.

Ripple’s adoption makes existing broken and crooked financial system faster.

The above example about how a revamp of existing financial system is the need of the hour is not answered by Ripple’s offering.

  • It’s not innovative

A private shared ledger is no more innovative than a shared excel workbook.  Google drive does a better job in sharing information, if that was really the plague that haunts current financial system.

We all know, that is not the problem.  Problem is centralization, lack of transparency and too much control vested in few hands.

Ripple doesn’t change any of the existing issues. None.

What it does is remove the hurdle of ‘time and cost constraint’ for big players.  Not a big innovation in our view.

If you say that Ripple solves the problem of liquidity and instant transfers, you should learn about Xoom.com (a Pay Pal company now).  They offer instant transfers (even on a non-workday) for verified customers.  They operate within the realms of existing financial system and do much more than facilitating money transfers.

Why do we need the ‘cover’ of cryptocurrency for a system that is already being helped by a company like Xoom?

  • It’s not crypto

Ripple is not a crypto in true sense in our view because:

  • It is not private
  • It is not anonymous
  • It is not based on blockchain
  • It is not mineable
  • It is not TRULY limited
  • It is not controlled by public (or voting)
  • It is not required to use services on the Ripple’s platform

Although, it might sound like this is an anti-Ripple article, we assure you, it is not.  If you have legitimate reasons that can change the opinions expressed in this article, feel free to share them with us.  Given the infancy at which crypto space is at, we all can learn from each other.

  • It’s not decentralized

Ripple owns about 60% of its total supply.  This is anything but decentralization that crypto has emerged to be. We can go on and on about why decentralization is important for crypto space but intelligent patrons know better.

  • Why it may win?

A wild card scenario maybe SWIFT and Ripple partner to join forces with major financial institutions.  If that happens, there will be no stopping of Ripple.

Ripple may be adopted by world’s major banks and the XRP used as an actual means of exchanging/transfer of value across the borders.  This too will contribute to a major victory for Ripple.  Ripple has already shown the signs of being on the road to wide-spread adoption, more than most other projects on the crypto space.

Also remember, most of the world population (more than 97+%) is not invested in the crypto space and if Ripple can translate the benefits of blockchain without ever starting a blockchain and helping big financial institutions to offer the benefits of a blockchain enabled world through its distributed ledger framework, then it may actually wipe most of the crypto coin projects from the face of the crypto space.

Here are more reasons that might contribute to Ripple’s success.

  • Purported bitcoin contender

Many have speculated that Ripple with its lightning fast transactions and almost negligent transaction cost will soon take over and replace Bitcoin.

  • Superfast transactions

Ripple actually has one of the fastest transaction speeds.  Not the fastest but definitely in the fastest list.  However, we contend that since it is not a blockchain based currency, it doesn’t take a genius to understand why they might have fastest transaction speed.

  • Active marketing team and social presence

Just go to google or YouTube and search for Ripple.  It is likely that you will find inexhaustible number of articles and videos, respectively.

Whether this information is based on real value or perceived value because Ripple has made many individuals truly wealthy and thus has secured a loyal fan base, the sheer amount of social traction that Ripple has is enough to propel it to new heights.

  • Partnerships with financial institutions

We have stated this before but the partnerships with big names that Ripple has established is one of the reasons why Ripple captures lot of mainstream media’s attention.

Aspects like appearances on CNBC, 50+ Billion dollars at its disposal, capability to expand its team and connections and fact that Ripple is doing everything in its power to be the dominant player in the crypto space, who knows, it might even succeed in its mission.

Why it may lose?

If the financial institutions crumble under the weight of innovation of blockchain, cryptocurrencies and decentralization, then inevitably, Ripple that depends so heavily on the adoption by big financial institutions will go down with them.

Expect a major fight from these financial institutions that have been enjoying ripping people off with fees, oligarchical control over the financial health of the world and playing with the lives of ‘common men’ across the world.

Bank of America has already announced a digital coin of sorts.  If big financial institutions adopt to the changes and participate in this blockchain revolution (and succeed) then Ripple may play a part and succeed with them.  Even then SWIFT with its gigantic network is not going to let a new kid on the block destroy them.

A major collapse of current financial system model, a blow back from SWIFT, financial institutions adopting ACTUAL blockchain technologies or developing their own system, crypto-fans retaliation and the fact that there is not an actual use case for XRP itself in the Ripple ecosystem, any of these reasons in isolation or in combination can bring value of XRP crumbling to the ground.

OR at least that is the logical thing to happen.

However, we all know, crypto space is anything but logical.  So unfortunately, we along with others have to wait and see what happens of Ripple.

While writing this article, Goldman Sachs announced that they will start their own cryptocurrency backed by USD.  With its existing connections and sheer business volume, projects like these can prove to be a big blow to the projects like Ripple.

If Ripple fails, it will bring the whole crypto market, although temporarily, crumbling down.  This is another undesired outcome when a project like Ripple grows bigger than it should be.

Conclusion

You might say, what Ripple is trying to solve doesn’t actually need a blockchain technology and that all this rambling is in vain.  You may be right.  But we do ask you to show us a software company or for that matter any other company (other than financial institutions) that were able to ‘print’ money out of nowhere?   Show us a company that raised money from public with 60+% control on all of its assets and option to release a billion shares per month (at today’s value, about 680 million dollars) at its own whim?

If you operate in blockchain and crypto currency space, we have every right to expect you to be playing in the spirit of crypto space.

While the case can be made for any number of possible outcomes, we at CryptoTapas (and QRIP) are firm in our position, we will not invest in Ripple nor will we recommend it.  We might be utterly wrong at this position and that is ok.  As Buffet taught us “we win some, we lose some” and we would rather win with some truly world changing ideas, which we do not believe Ripple qualifies for, in our opinion.

CryptoTapas is an initiative of creators of QRIP group.  QRIP group is FREE to join.

Do your own research before investing. Crypto space is very volatile, don’t invest more than what you can afford to lose.  Opinion, not an advice.

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Crypto News

Crypto News Today #53

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breaking crypto news

A rather slow week in the crypto space.  

Bitcoin on track to $100,000 by 2025

A Bloomberg report titled “Bitcoin Trend, Adding Zeroes” predicts that $100,000 by 2025 is on track.  “Bitcoin could continue doing what it has for most of its nascent existence, appreciating in price on the back of increasing adoption, but at a slower pace as we see it. The first-born crypto has had a tendency to add zeros to its price from around $10 in 2011. It took about four years to go from $1,000 to $10,000 in 2017, so doubling that time frame for maturation could get the price toward $100,000 in about five more years. Or the new technology could fail, but our demand indicators are positive. With the exception of stable coins, the rest of the crypto market is subject to excess supply and competition,” report read.

Another company joins the $100 Million Bitcoin club

Stone Ridge created a subsidiary called New York Digital Investment Group (NYDIG) to act as the custodian of its own customers bitcoin.  The move was prompted by the growing demand from customers who were willingly investing 1% to 5% of their portfolio in Bitcoin.  Forbes reported that “Stone Ridge Holdings Group revealed NYDIG is acting as custodian of 10,000 of the parent company’s bitcoin, valued at $115 million at today’s price.” “The two largest funds currently managed by NYDIG are the $190 million Institutional Bitcoin Fund LP, disclosed in regulatory documents in June and the $140 million Bitcoin Yield Enhancement Fund LP disclosed in May,” the article revealed.

Coinbase lost 5% of its workforce, got over 1000 requests from FBI

coinbase best exchangeAbout 5% of the workforce left Coinbase due to its ‘no politics at work’ stance. At the same time, it has allegedly received more than 1000 requests from agencies, mainly FBI, regarding crypto transactions. While these news are unrelated – Reddit and other social media channels are flaring up with anarchists rhetoric calling crypto users to move away from the capitalists Coinbase. We are indifferent on the matter.

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

 

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

 

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Crypto News

Crypto News Today #52

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On ramps are being built to pave the world’s businesses to the blockchain. Latest in this trajectory is EY, one of the world’s big 4 accounting firms, who has built a solution to onboard businesses onto blockchain.

EY launches Ethereum Solution ONP

OpsChain Network Procurement (ONP) which is expected to help convert the procurement contracts into digital smart contracts and automate volume discounts/rebates has been launched by Ernst & Young (EY) on Ethereum Blockchain. EY is one of the Big 4 accounting firms in the world that has been eyeing to be at the forefront of blockchain technology and this ONP is a great addition to its forte. “EY OpsChain Network Procurement supports network-level business processes by moving those business processes outside of any single ERP system and into a shared blockchain-based smart contract. It builds upon EY experience with other procurement activities, such as software royalty calculations, where shifting to blockchain-based contracts has compressed cycle times by more than 90% and cut costs by 40%,” according to the press release.

KuCoin hack hauls $130 Million, creates a stir re: decentralization

KuCoin got hacked during the week for 100s of millions of dollars.  However, according to the KuCoin CEO Johnny Lyu substantial part of those stolen funds have been recovered. Over $200 Million in stolen funds have been recovered. While many crypto maximalists were furious at the fact that KuCoin and the projects supporting KuCoin were able to freeze the funds in the suspected accounts, some argued that the key tenet of blockchain and cryptocurrencies is the ability to be not shut down by an external force. Say what may – this recovery of funds has been welcomed by those who use KuCoin. In a clear twist of the plot, KuCoin was able to turn these things around and instill confidence in the exchange. The latest in this hack thriller is that KuCoin claims to have located the hackers and are now working with the authorities to take the legal action.

The man who called banking system a scam buys his first Bitcoin

The UK politician whose speech against the banking scam has been referred to by crypto communities, Godfrey Bloom,  has tweeted that he made his first purchase of Bitcoin. 

 

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

 

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News Today #51

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This week people are reminded why Blockchain and cryptocurrencies are needed.  An expose by Buzzfeed reviewed the FinCEN files to show that major financial institutions have been assisting and facilitating illicit affairs to earn their fees.

$2 Trillion scandal shows why we need blockchain now

Standard Chartered, HSBC, Bank of America and many of the world’s biggest financial institutions have been secretly mining money in the form of fees for the world’s most dangerous individuals and entities.  “A huge trove of secret government documents reveals for the first time how the giants of Western banking move trillions of dollars in suspicious transactions, enriching themselves and their shareholders while facilitating the work of terrorists, kleptocrats, and drug kingpins,” reports Buzzfeed which ran an expose on the whole matter.  This reminds us one more time that the number one choice of criminals is not bitcoin or cryptocurrency which remain quite traceable.  Criminals use cash and also major bank accounts in broad daylight for their illicit affairs.

OCC issues clarification for banks regarding stablecoins

Office of Comptroller of the Currency issued clarification about banks holding cryptocurrencies, specifically, stablecoins.  Essentially, OCC gave greenlight for banks to hold stablecoins as long as they have 1:1 reserve.  “A bank providing services in support of a stablecoin project must comply with all applicable laws and regulations and ensure that it has instituted appropriate controls and conducted sufficient due diligence commensurate with the risks associated with maintaining a relationship with a stablecoin issuer. The due diligence process should facilitate an understanding of the risks of cryptocurrency and include a review for compliance with applicable laws and regulations, including those related to the Bank Secrecy Act (BSA) and anti-money laundering,” OCC letter clarified.

Cryptos are part of Visa’s future strategy

Digital assets and blockchain technology are going to be important parts of Visa’s future,” was the conclusion of an exclusive Forbes interview with Terry Angelos, SVP global head of fintech at Visa and Cuy Sheffield, senior director, head of crypto at Visa. “We are seeing significant interest in demand from crypto companies that want to work with Visa and connect their clients to our network of 60-plus million merchants,” Terry mentioned during the interview. Visa expects to be part of broader cryptocurrency adoption and also work closely with the world’s major banks in the CBDC adoption.

EU announces plan to regulate cryptocurrencies

European Commission is working on introducing a framework to regulate cryptocurrencies.  It could potentially take a year or more for these regulations to come out.  Investor protection and enabling innovation will be cornerstones of these proposed plans.  The new plan will mean that crypto-asset companies authorized by one of the 27 EU countries will be able to provide its services across all the other member states, according to the CNBC.

Gemini is expanding into United Kingdom

Winklevoss brothers brainchild, Gemini, is expanding into the UK as it received the electronic money license from the Financial Conduct Authority (FCA).  This move will allow residents of the UK to buy bitcoin using a debit card on the Gemini platform.  According to the article in Bloomberg, Gemini is looking to expand into Singapore next.  

Fun Fact: Norway, Blackrock and Vanguard hold Bitcoin, indirectly

The Norwegian Government Pension Fund, which owns 1.5% of MicroStrategy, effectively owns roughly 577 bitcoins. Blackrock and Vanguard also own shares in Microstrategy which in turn makes them indirect holders of Bitcoin. Source: Forbes.

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

 

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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