There is no such thing as ripple mining: Here’s why • Benzinga

By most measurable standards, 2017 was the year of cryptocurrency, with total market capitalization increasing by over 1,600% – and many believe this is just the beginning.

Ripple, which is traded as XRP, has the third highest market capitalization among all cryptocurrencies. Currently, the Ripple coins in circulation total over $ 39 billion.

Cryptocurrency mining

Most cryptocurrencies are created in two ways: an First coin offer (ICO) Start-up aid for the offer or the currency is being dismantled. Cryptocurrency mining Uses computer processing power and specialized mining software to decode encrypted hashes.

You can think of hashes as pieces of the puzzle. These hashes are part of a block that checks transactions for a specific cryptocurrency. As soon as enough hashes have been decrypted, the block is recorded in the blockchain and the miner receives a reward in the form of a cryptocurrency. For most coins, the difficulty increases as more coins are put into circulation, which requires more processing power so that each new coin can be mined.

For some newer coins and some coins that use decryption algorithms to maintain an even playing field for miners like Monero, a standard dual-core or quad-core processor can be used to mine the cryptocurrency, although mining is part of one Pools Usually More Is More Effective Than Solo Mining, and mining on lower spec hardware is likely to use more electricity costs than is involved in producing cryptocurrencies.

Other coins like Ethereum are commonly mined using cards from graphics processors (or banks from GPU cards) as opposed to computer processing units (CPUs). Bitcoin can be technically mined with a GPU, but it is extremely competitive and now competitive in the field of specialized hardware known as ASICs. The expanded hardware requirements required to mine Bitcoin have centralized mining efforts and made China the largest Bitcoin maker in the world – at least for now.

XRP is the coin, Ripple is the blockchain technology

What is ripple?

Ripple was designed as a currency for a central payment systemThis is both the appeal and a common reason why some members of the cryptocurrency community don’t believe that Ripple is equivalent to other cryptocurrencies, especially due to its centralization and corporate control. Ripple is focused on fast and inexpensive bank-to-bank transactionsAt the same time, business-to-business transfers and peer-to-peer transfers are offered.

A The transmission of the ripple can take place in secondsCompared to minutes for an Ethereum transfer, hours for a Bitcoin transfer and often three to five days for a conventional transfer of standard currencies. An average Ripple transfer costs less than half a cent, one of the lowest of all cryptocurrencies and potentially a thousand times less than the cost of a traditional bank transfer.

Why XRP cannot be degraded

A handful of cryptocurrencies cannot be mined in the traditional sense. This group includes Ripple. At the beginning, 100 billion Ripple coins introduced the currency. Ripple Labs, formerly OpenCoin, still holds around 60% of the currency in general ledger escrow accounts.

Ripple management can release up to a billion coins per month, but the expected release rate is well below the one billion coin cap. The unused credit is transferred to a new transfer deed, which is only released in the first month in which no escrow account is provided for release. It sounds complicated, but all it means is that The supply on Ripple is unlikely to suddenly open up, flood the market and plunge prices. Instead, an orderly increase in supply is expected.

Ripple’s role in the cryptocurrency hierarchy

Every cryptocurrency has a reason to exist. In some cases the currency exists as an alternative to established fiat currencies, with decentralization and a value determined by an active market being the main draw. Privacy is a goal of some currencies like Monero, Zcash and Dash. Instead, Ripple focuses on being a quick and inexpensive way to transfer money. In January, Ripple announced in a tweet that three of the world’s top five money transfer companies would be using XRP in cash flows in 2018, with more expected in the pipeline.

Much of the excitement about Ripple is centered around the news, which Over 100 banks and companies have registered to use the company xCurrent System to transfer money. However, the xCurrent system does not use ripple tokens (XRP). Ripple tokens are used with the company’s xRapid transfer system, a system with a young user base.

Ripple of market value and market capitalization

The value of the Ripple currency rose from 0.006 (a fraction of a penny per coin) near its trading range since 2013 to an all-time high of over $ 3.00 per coin on January 4, 2018. Ripple is trading at $ 1.69 and has a market cap of $ 77.27 billion. Before its massive ramp-up in late 2017, XRP was the coin crypto traders liked to make fun of because its price barely moved compared to other coin values.

Delivery statistics

Ripple’s offering is around 38 billion coins, only taking into account the number of tokens currently in circulation. In total, The offer is 100 billion coins, with the Ripple company being able to release up to an additional 1 billion coins per month as needed. In the past, most of these reserve coins were kept in an escrow account, with the unused coins being converted to a new escrow account to be released at a later date.

Other ways to profit

Ripple’s massive price hike has attracted both investors and speculators a new volatility for XRP with opportunities for both short term trades and long term investments. Ripple isn’t available on the Coinbase exchange or the GDAX trading platform, but a number of other exchanges offer trading opportunities for XRP, including Binance and other well-known exchanges.

Gatehub also serves as the “official” online wallet for XRP, offering both a wallet service that allows you to send and receive money and Gatehub’s trading feature that allows users to trade in popular coins such as Bitcoin and Ethereum and trade for fiat Currencies. The Gatehub wallet can be funded with US dollars which can then be used to purchase Ripple or other digital currencies.

Alternative coins

Ripple cannot be mined, and Bitcoin has become an industrially mined currency that makes hardware and electricity needs inaccessible to most people. Ethereum, Litecoin, Monero, and Dash are still popular with altcoin miners. Mining success rates and profitability depend on a number of factors, including hardware and the availability of pools that coordinate the mining effort. Many miners focus on higher cap altcoins in the hopes that those currencies will have more staying power. Cryptocurrencies, especially newer currencies, can disappear in the dark.

Final thoughts

Ripple occupies a unique place in the cryptocurrency market. Promising acceptance in mainstream financial transactions for banks, corporations, and even individuals, although the focus is on larger institutions. The long-term value of the currency itself, XRP, largely depends on the acceptance that Ripple is gaining to become an alternative or even a preferred method for transferring money around the world.

While Ripple cannot be broken down, There are many trading opportunities either for short-term trades that take advantage of the newfound volatility of XRP, or for long-term trades for the true believers who want to build a position in a currency with limited issuance that could become the backbone of many financial transactions in the future.

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