Is This 1 Core Attribute of XRP a Major Red Flag?
Sometimes an investment's strengths can also be its weaknesses or risks when looked at from another perspective. That's certainly true for XRP (CRYPTO: XRP). As one of the largest cryptocurrencies, it has a distinct focus and mandate compared to its peers. That makes it a particularly worthwhile investment, but also exposes it sharply to potential problems that many other coins simply don't have.There's one specific issue that some investors have singled out as being of great importance, as it's perhaps the biggest red flag that it's possible for a cryptocurrency to have. At the same time, it's clear that the coin probably couldn't deliver value to investors at all if the feature in question didn't exist. Let's unpack what investors are concerned about, and determine whether it's actually a big problem or not.One of the dreams of the early cryptocurrency community, specifically Bitcoin, was to create forms of money that were not beholden to the same rules as fiat currencies. By ensuring that the supply of cryptocurrencies wasn't concentrated too much in any individual's hands, and by implementing protocols that required mining by a diverse set of different users, the idea was that much-feared tomfoolery like excessive money printing and extreme monetary inflation could be largely avoided. No one player would control enough of a blockchain's mining power to unilaterally make changes to the protocol or create more coins.Continue reading
Sometimes an investment's strengths can also be its weaknesses or risks when looked at from another perspective. That's certainly true for XRP (CRYPTO: XRP). As one of the largest cryptocurrencies, it has a distinct focus and mandate compared to its peers. That makes it a particularly worthwhile investment, but also exposes it sharply to potential problems that many other coins simply don't have.
There's one specific issue that some investors have singled out as being of great importance, as it's perhaps the biggest red flag that it's possible for a cryptocurrency to have. At the same time, it's clear that the coin probably couldn't deliver value to investors at all if the feature in question didn't exist. Let's unpack what investors are concerned about, and determine whether it's actually a big problem or not.
One of the dreams of the early cryptocurrency community, specifically Bitcoin, was to create forms of money that were not beholden to the same rules as fiat currencies. By ensuring that the supply of cryptocurrencies wasn't concentrated too much in any individual's hands, and by implementing protocols that required mining by a diverse set of different users, the idea was that much-feared tomfoolery like excessive money printing and extreme monetary inflation could be largely avoided. No one player would control enough of a blockchain's mining power to unilaterally make changes to the protocol or create more coins.
