The Two Figures Indicate a Strong Probability of XRP Surpassing $3 and potentially Advancing Further
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XRP's Magic: The Real-World Application of this Popular Cryptocurrency
With a current value of around $2.40 and a promising future, XRP (XRP 3.88%) isn't just a buzzword in the crypto world. It's a game-changer when it comes to international money transfers. Let's delve into how XRP can save you a ton of cash and time.
Picture This: A World of Convenience
Let's say you're in need of helping a pal abroad. They're running low and need $20 in their bank account ASAP. You could opt for the old-school SWIFT transfer, but that would cost you anywhere from $20 to $50 and take a few business days, not to mention the hefty exchange fees. Or, you could use XRP.
First, you'd need to convert your fiat currency into XRP using your crypto wallet. Depending on the methods you choose, these fees might add up to around 1%, or in this case, a mere $0.20. Then, sending the XRP to your friend's wallet address would cost you an average of $0.0025 in fees - roughly a fraction of a cent. Upon receipt, your friend could transfer the XRP to their bank, incurring another $0.20 in fees. So, between you two, the total cost for this $20 transfer? Just $0.40.
That's the power of XRP, right there.
The Cost of Being Affordable
Once your cash is on the XRP network, you're essentially dealing with free transfers. Why? Because minuscule transactions don't change the cost ratio, making every money move worth its weight.
Onboarding and offboarding funds onto the network aren't expensive either. This means XRP will continue to outshine traditional transfer technologies like SWIFT, gaining transaction shares in the process.
The XRP Flywheel Effect
As of February 20, the 24-hour volume of XRP trading was over $5 billion. With each transaction generating just a few fractions of a cent, that's a lot of revenue for Ripple, the issuer of XRP. They can reinvest this revenue into enhancing the network, making it more scalable and capable of handling even more users and transaction volume.
Additionally, Ripple can promote XRP to financial institutions worldwide, making them see the value in using XRP for their transfers. When more banks adopt XRP, more XRP will be held on their balance sheets, less frequently converted back to fiat. This creates a floor price for XRP, enhancing its demand and pushing prices up over time.
Just because the price of XRP won't skyrocket to $3 right away doesn't mean it's not a solid investment with a promising future. The investment thesis for XRP is rock-solid, and its attractiveness is only growing.
Still unsure about why XRP is gaining traction? Try using it for your next international money transfer. The convenience and cost-effectiveness are unparalleled.
[1] Enrichment Data: While XRP transactions generally cost $0.0025 on average, the total price can vary depending on the choice of on-ramping method, market conditions, and other factors. These costs are comparatively much lower than the SWIFT transfer fees, which are estimated to range between $20 to $50 per transfer, depending on the banks involved and the amount of money being transferred.
[2] Enrichment Data: XRP operates as a bridge currency, facilitating direct fiat-to-fiat transfers without the need for multiple currency conversions. This results in reduced transaction fees and lower exchange rate fluctuation risks compared to traditional SWIFT transfers, which often involve multiple intermediaries and multiple currency conversions.
- For practical investment purposes, considering the average XRP transfer fee of $0.0025 and the typical SWIFT transfer fees ranging from $20 to $50, investing in XRP for international money transfers could prove to be a more cost-effective choice.
- To take advantage of XRP's cost-efficiency in transferring money, one can convert their money into XRP using their crypto wallet, sending it to the recipient's wallet address, and then having the recipient transfer the XRP back to their bank, all while incurring minimal fees.
- The affordability of XRP transactions, even when factoring in the initial conversion and subsequent conversion fees, will continue to make it a more attractive option compared to traditional SWIFT transfer technologies, given its minimal transaction costs.
- By transferring money using cryptocurrencies like XRP, investors can potentially benefit from Swift's competitors, saving both money and time, making such investments a practical choice in the realm of finance and investments.
