Ripple, just like bitcoin, has a total cap of tokens available within the total currency system. With bitcoin, though, this cap is reached through mining, where initially the vast majority of the 21m bitcoins to be mined are still there for the taking, and over time through a process called block halving, will slow down and reach the cap.
Ripple is similarly set up with a capped total token amount: Unlike bitcoin, however, Ripple is not really bitcoin at alltime highthe market mogul cryptocurrency.
Curiously, Ripple still has 55bn tokens its hands. With this massive store of tokens not yet on the market, Bitcoin at alltime highthe market mogul the company is in a position to flood the market at any point they choose.
Ripple has announced a plan to deal with this problem, however. Through their own product, Ripple Escrow, they plan to enter the 55bn tokens into escrow to be released over time.
Over 55 months, they plan to release 1bn XRP tokens per month into the general supply. Taking a bit over four and a half years, this plan was announced in May.
It was announced with an execution timeline in latebut there is now not much time left inand a specific date for this mechanism to be put into play has not yet been announced. While Ripple fits the first part about encryption techniques, there is no generation of units of currency with Ripple. They were all generated at the genesis of the system, and Ripple, the company, owns more than half of them still today.
By being a centralisation force, it breaks the definition of cryptocurrency, but is definitely a secure digital currency. Why is Ripple, therefore, considered the third cryptocurrency by market capitalisation?
This is largely an issue of branding. As a cryptocurrency, Ripple is much more attractive to publicise, since it can be compared to Bitcoin while offering much more transaction throughput and therefore speed at lower fees.
All of these benefits, though, are at the expense of what makes Bitcoin a cryptocurrency: Bitcoin currently is going through growing pains in this regard, as the block size is currently causing wild debate about how to best approach scaling past its current bottlenecked throughput of under 10 transactions per second. Bitcoin came out of the financial crisis occurring in the early s, to fight big banks who controlled the flow of currency.
While Ripple will likely shoot up in price drastically, the all time high that was hit in May when Ripple originally announced the aforementioned escrow plan is now almost twice the current price.
Bitcoin at alltime highthe market mogul fact that the escrow plan has not been put into motion yet is somewhat worrisome, but in the bitcoin at alltime highthe market mogul run, Ripple is just another big bank.
While it is employing some good things from cryptocurrency, namely using cryptographic techniques to secure transactions digitally, Ripple is not doing much more in terms of decentralisation. The whole point of cryptocurrencies is to not need big banks. In the 14th century, the Medici family became notoriously wealthy by implementing the first ever banking ledger, with accounting done on two copies to ensure redundancy. Without clarity around their plan to release the exorbitant amount of bitcoin at alltime highthe market mogul supply they hold and considering the long run vision of cryptocurrencies, it is, however, hard to believe in Ripple bitcoin at alltime highthe market mogul now.
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