Launched in 2012, XRP (CRYPTO:XRP) is one of the oldest cryptocurrencies out there right now. Created by Ripple Labs and often called Ripple, the XRP token has not exhibited stellar growth comparable to Ethereum or Bitcoin over the years. Both of the top cryptocurrencies have made millionaires out of early investors.
XRP has not provided such astronomical returns to the crypto traders who own the cryptocurrency. Many investors have mixed opinions about the crypto token’s ability to achieve network growth that could make millionaires out of its holders. The cryptocurrency is the sixth-largest cryptocurrency by market cap at writing.
I will discuss a few reasons it would be wise to keep this top crypto on your radar if you want to invest in this speculative asset class for significant long-term wealth growth.
It makes cross-border payments a breeze The ability to transfer money anywhere worldwide is something that many investors tend to take for granted. The world is becoming increasingly interconnected, and the importance of being able to make cross-border payments easily will only grow as time goes on.
XRP is uniquely positioned to capitalize on the growing demand for easier international money transfers through its global payment transfer system called the Ripplenet.
Ripplenet allows XRP users to transfer money in virtually any currency anywhere worldwide for a transfer fee of around $0.25 per transaction. The transaction cost of making cross-border payments through the Ripplenet and XRP token is significantly lower than using most of the biggest traditional money-transfer services.
As it grows its money-transfer business, XRP could become increasingly important in the cryptocurrency industry. XRP’s blockchain is one of the best when it comes to cross-border functionality, especially at a large scale.
It boasts an efficient blockchain network The efficiency of XRP’s blockchain network is the primary reason for the considerably low transaction fees its users have to pay for cross-border payments. The overall efficiency of a blockchain network determines the prices charged as fees for any cryptocurrency, and XRP beats most of the major cryptocurrencies in this.
XRP allows you to make several transactions with charges of merely a fraction of a cent. The ability to make international money transfers at a large scale with considerably low costs and quick completion time could make XRP a valuable tool for merchants worldwide.
Foolish takeaway Ripple Labs, the company that developed the XRP token and Ripplenet, has locked horns with the United States Securities and Exchange Commission (SEC) in a lawsuit for over a year now. I have covered the Ripple and SEC case in previous weeks, but it is still something you need to consider when deciding whether to invest in this cryptocurrency.
The outcome of the lawsuit could shape the future of the XRP token. The result will also have an impact on the broader cryptocurrency industry. The case appears to be in favour of Ripple Labs right now, but the case has yet to reach a conclusion.
XRP appears to be an ideal investment based on fundamental factors and developing trends. However, risk-averse investors might want to sit on the sidelines to see how the case ends before they make investment decisions.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.