Hedging Bitcoin with Ripple (XRP)

Bitcoin (BTC) has been on a monster run. Hopefully you caught the ride up when Bitcoin broke out of the ascending channel in early November (see Bitcoin Breakout). In life great success has both its benefits and its draw backs, the same is true for Bitcoin. The Bitcoin run is not over in the long-term (although the “blow off top” recently at $11,400 is a short term top), but the volatility is increasingly attracting the attention of regulators. Uncertainty and unease, among skeptics, over the use and stability of Bitcoin will continue to grow as price appreciates. At a certain point Bitcoin may come under pressure if banks and regulators make a concerted effort to reign in the coming disruption. This is why we must identify hedges to our Bitcoin (BTC) exposure. The case for investing in Ripple (XRP) has several attributes, but the best way to conceptualize the investment is the old saying, “if you can’t beat them, then join them.”

Why Invest in Ripple (XRP)?

The Ripple (XRP) use case is described on their website:

Today the world sends more than $155 trillion* across borders. Yet, the underlying infrastructure is dated and flawed. Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally.

XRP is the cryptocurrency that gives RippleNet the functionality described above.

Ripple is a partner to the banks, not a disruptor like Bitcoin. Banks will need to develop an offering that can compete with Bitcoin. Several banks and venture capital firms have already invested in Ripple. Ripple has also been hiring prominent former regulators. I know that seems like crony capitalism, but if you used morality as an investment guide then you’d be righteous but also penniless.

Even current regulators are urging banks to develop better offerings to compete with Bitcoin (see ECB’s Yves Mersch: Banks Need Faster Payments to Counter Bitcoin).

Is Ripple (XRP) Currently a Buy?

Yes. The chart below shows the asset is currently breaking out of a “bull flag” formation. It is time to diversify and invest in Ripple (XRP).

If you need a better understanding of where to purchase Ripple (XRP) or other crypto assets, refer to How to Invest in Cryptocurrencies.

As always CoinSavage is here to help, see the Token Report section for a report with price target. Members receive chart analysis with weekly updates.

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