Have you ever had the fear of missing out? Recently, I’ve experienced this on a small scale when I was giving the Bitcoin and cryptocurrency some deep thought.
Lately, A LOT of my friends have been chatting with me about crypto and how it has even prompted some of them to invest. I grind my teeth at the thought of investing in Bitcoin when you’ve got moments like these on December 18th, when Bitcoin dropped in value…of let’s just say by more than 30%!!
According to this article I read in Forbes, Bitcoin’s drop influenced the other cryptocurrencies to drop as well and it amounted to a 20% decline in the global crypto market.
So why did Bitcoin drop in the first place? There seems to be no concrete answer and there are many “possible” explanations. Hmm, this doesn’t make me feel ANY better and my “FOMO” has dissipated. I don’t care about the returns, the last thing I want is to wake up one morning and all of my investments be gone. I’d rather invest for 20 years in the S&P and hope to get 100%+ gains than try to “get rich quick” with a crypto.
I’ve got no further interest in Bitcoin and here’s my underlying problem with it:
- In my opinion, there is no intrinsic value
- It’s volatility gives me whiplash
- There’s a lack of institutional support, both government and financial institutions
Don’t get me wrong, it’s not to say that I don’t have an interest in the cryptocurrency world. I believe that crypto is on a path to disrupt the payments processing industry, banking, and currency on a global scale. However, I don’t think crypto will replace the hundreds of currencies in our lifetime, but I may be wrong.
Either way, I’ve actually found a crypto that makes me feel very comfortable with the idea of investing and I love their approach to disrupt and innovate.
Ripple – “XRP”
From what I’ve seen and learned, Ripple is innovating and disrupting this industry from within the system and they are building strategic partnerships. It makes a big difference and definitely gives consumer confidence when you’ve got a laundry list of financial institutions partnering with you…
The CEO of Ripple made a comment once that banks are not the enemy and that’s why these other cryptos are going to have a huge obstacle. Brad Garlinghouse couldn’t be more on point with that statement. Here are the reasons why I feel good about Ripple and why I will invest in it in 2018:
- They work directly with regulators and all major stakeholders in the industry
- Their technology innovates payment processing and payment remittance
- Their payments settles in 3.6 seconds, in contrast to the 4 hours it takes for Bitcoin transactions to settle
- They are providing a liquidity value proposition for banks worldwide
- They’ve got a strong and scalable business model AND they are cash flow positive
- Established partnerships with hundreds of banks
I’m sure I can find more reasons to like them but just with these points alone I feel good about Ripple. The way they have positioned themselves to compete in the global crypto market is a business that attracts me to want to invest. It gives me more confidence in the cryptocurrency asset class. Also, what I like about Ripple is it’s affordable trading price at $1.1261 as of 12/27/17 10:14AM.
So, what can I say? My FOMO has transitioned from Bitcoin to Ripple! Ripple has got a lot more going for itself than just the hype and perception Bitcoin offers. As an investor, I look for a stable, competitive, and scalable business model and a business that is innovating and building strategic partnerships.
Now I’m just waiting for my Bitstamp account to be approved so I can begin investing in my first cryptoccurency!
I’d love to hear your thoughts about Bitcoin, Ripple and the other cryptos in the market. Are you going to invest? Have you invested? Are you experiencing FOMO?