Is XRP the smartest cryptocurrency to buy with $ 1,000 at this time?

In each era, there are businesses that try to gain when providing the goods in which others trust, such as companies that sold shovels during gold fever. XRP (XRP -0.34%) It is, at least from a perspective, one of those businesses. Their sponsors in Ripple are working tirelessly to make the main book XRP (XRPL) the settlement layer that financial institutions use to move and manage capital in the block chain.

XRPL can make fast and cheap transactions by implementing solid regulatory compliance controls, so it appeals to banks and currency exchangers, among others. But does that make it the smartest cryptocurrency to buy at this time with $ 1,000, or are there better options?

XRP’s commitment is to own the rails used by institutions

The XRP ecosystem aims to make cross -border transactions and asset handling faster, cheaper and fulfilled by the design so that its users can carry out their activities in the block chain without incurring legal headaches.

Transaction costs in the chain begin with a fraction of a penny and increase with the load to deter spam, maintaining economic payments and, on average, very fast. In addition, the reserve requirement of the biggest book is very low, which makes it more accessible.

Critically, compliance tools are integrated into the protocol, so it is not necessary to implement solutions or a third -party tools pile. Assets of assets can restrict or authorize the accounts and, when allowing the law, freezing assets to enforce the transfer rules, all of which are a family set of tools for regulated finances. Ripple is also extending the XRP ecosystem to include its own stablecoin, which will work in the XRPL and could become basic funds and liquidation guarantees for customers. Financial institutions will be able to access the equivalents of fiduciary currencies to store their value, and institutional investors may safely maintain capital in the chain to implement every time they consider it convenient.

In addition, regulatory problems are finally in the rearview mirror for Ripple and XRP, which means that investment is less risky now. The Bolsa and Securities Commission officially resolved its lawsuit against Ripple on August 22.

The conclusion for XRP is that the advantage of the currency is real if the institutions are standardized in the XRPL rails because they will need to buy and maintain some XRP to do almost anything in the chain. The compensation is that there is a substantial amount of risk of execution for Ripple with XRP, since many other chains compete for the same institutional capital and, in the long term, they could be better to provide the characteristics that institutional users are looking for.

But is there a smarter option?

So what should you do with your $ 1,000? That depends on whether your encryption portfolio is just beginning or is already established.

XRP is a currency that is worth buying and maintaining in the long term. But if it does not have other cryptocurrencies, Bitcoin (BTC 0.76%) It is a much better choice.

Bitcoin is an inherently scarce reserve of value, and is a more conservative option than XRP. He does not need to gain any competition to continue being valuable, since his mechanic in half ensures that the coins are almost always scarce, which supports the highest prices over time.

On the other hand, if you already have a good amount of bitcoin in your portfolio, it makes more sense to pursue additional growth with an XRP purchase. Alternatively, if your only objective is to pursue the institutional adoption of Blockchain, assign a portion to XRP makes sense. Their rails are designed to comply with the compliance standards required by the financial institution and banks, and the impulse of Ripple products gives the greatest book more opportunities to attract capital.

But keep in mind that XRP must overcome other chains to continue growing. That means that it should be treated as a game of greater risk and greater reward in a broader cryptographic strategy than the nucleus must be Bitcoin.