XRP has been one of the most talked-about cryptocurrencies of late, and that’s something that attracts the attention of various enthusiasts who would like to offer a more in-depth account of it. According to one Mark Phillips, there’s enough evidence to indicate that XRP was actually designed to be worth of $10,000.
Designed For Financial Institutions
In the article, Mark argues that XRP was specifically designed for use by financial institutions as a viable replacement for the tedious conventional systems currently in use. As such, the crypto operational design offers better liquidity that overcomes the hurdles faced by price volatility.
This aspect is especially enhanced by XRP’s fast transaction processing, meaning that the funds transferred are not subject to value change in the course of the transfer. This comes in very handy in the case of cross-border transactions.
Divisibility And Low Cost Of Transaction
The fact that XRP tokens are divisible by huge numbers tells a lot in regard to what it’s designed for. For example, looking at the current price, it would seem weird that a cryptocurrency worth just $0.31 should be divisible by 1 million. However, as the market expands, the system needs more liquidity, and that means a higher price.
In that case, if all asset classes were to be incorporated within the XRP ecosystem, a single XRP coin would trade at roughly $11,000 to achieve the proper liquidity. In fact, the company behind XRP, Ripple, has been lobbying for partnership with hundreds of financial institutions around the world and encouraging them to use XRP as the base currency for funds transfer, it wouldn’t be a surprise if XRP was to hit $10,000 in value sometime in the future. The low transaction cost makes it more appealing to such institutions.
XRP To Serve 7.5 Billion People
Going forth, Mark argues that the XRP ecosystem was designed with the whole world in mind, saying that XRP can serve the whole world population (7.5 billion people). The XRP team is working to scale up the accounting mechanism to make the XRP Ledger more efficient in hosting personal accounts for users to use in their daily financial needs.