Ripple is distributing its digital currency for free to make people use it

By July 19, 2018 No Comments

XRP is currently the third most valuable digital currency by market capitalization behind Bitcoin and Ethereum. Ripple, a virtual currency company working out of San Francisco, has a majority stake in XRP. It seems that Ripple is dealing with a challenge centered around the fact that the public is willing to trade XRP but do not seem inclined to use it yet.
XRP is everywhere
Usage refers to utility outside of just buying and selling XRP out of sheer speculation. Our world doesn’t seem ready enough to use virtual currency at their grocery stores and gas stations just yet and so Ripple is focusing its energy on getting the public to utilize XRP to make global money transfers. If I have $1,000 that I want to send to my sister living in France, I would convert my dollars to XRP and send it to my sister who would then convert it into Euros or any currency of her choice. Ripple has tied up with several banks financial institutions to make this a reality.
How do you get people to use your currency? You have to ensure they have an abundance of it. Ripple is making this happen by distributing a ton of XRP to the public. Earlier this year, Ripple made an XRP contribution worth $29 Million to a charity to purchase classroom supplies for schools in the United States. Ashton Kutcher, the well known actor who is also an investor in Ripple, donated XRP worth $4 Million to the Ellen DeGeneres Wildlife Fund on behalf of Ripple when on her talk show.
Ripple is also gratifying people who use XRP. At the end of last year, Ripple put XRP worth $300 Million into the RippleNet Accelerator Program which is designed to reward banks and/or financial institutions that use the three Ripple products, one of which is xRapid. xRapid specifically uses XRP. In May 2018, Ripple created Xpring, a project focussed on financially supporting the development and growth of XRP- focussed startups.
Ripple plays a controlling role in the way people use XRP as well as how much of the currency is in existence. This is due to the way the coin is created. The number of Bitcoin in existence is linked to the count of bitcoin transactions (increased number of transactions = heightened amount of mining = more bitcoin). All XRP in the world was simply created in 2013. Ripple created 100 Billion XRP coins and kept 80%. This has given rise to accusations that Ripple has the ability to and actually has inorganically influenced the XRP market and thereby price.
All of these moves that Ripple has made have been done in the hope that XRP can transition from a speculative investment to an oft-used digital asset. It remains to be seen whether this vision will be realized but it is safe to say that they have certainly not hurt their chances by going about things the way that they have.

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