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Crypto Analyst Claims XRP Has ‘Real Utility’ Unlike Bitcoin, But It’s Wildly Undervalued

by firstcryptonews
January 8, 2020
in Industry
Crypto Analyst Claims XRP Has ‘Real Utility’ Unlike Bitcoin, But It’s Wildly Undervalued

XRP’s main use case is serving as a bridge currency for cross-border remittances through Ripple’s ODL. XRP has facilitated fast and secure transactions for large companies like MoneyGram, putting crypto on the map. Owing to this, one analyst believes XRP has true utility and is unfortunately unfairly priced due to its correlation to the OG cryptocurrency, bitcoin. Regarding bitcoin, the analyst opined that it risks collapsing due to the lack of true utility.

XRP’s Correlation With Bitcoin Makes It Undervalued
Crypto analyst going by the online alias Magic is convinced that XRP – which bolsters the On-Demand Liquidity product that facilitates international payments – is hugely undervalued. Ripple, with Brad Garlinghouse at its helm, is now a 10 billion-dollar company.

Most recently, the company promised to drastically reduce its quarterly sales after serious concerns were raised regarding these sales suppressing the price of XRP. This was seen as a huge step in the right direction by XRP investors who had long been vexed about the token’s dismal performance.

However, just like most altcoins, XRP’s movement is largely dictated by bitcoin. Magic explained in a tweet that this correlation with bitcoin, an “asset that has no real utility”, drags down the price of XRP.

Sans Real Utility, Bitcoin (BTC) Is Bound To Tumble
It is fair to say that bitcoin birthed the $196 billion dollar crypto industry. However, according to Magic, the top crypto lacks any real utility. He does not stop there. He then says that the 2017 crypto euphoria when bitcoin skyrocketed to $20,000 was driven by sheer speculation and the asset needs to find a real utility to avoid collapsing.

Magic observed that lack of utility can set off a domino effect of other negative reactions like the fall in demand and without demand, bitcoin’s fair value could subsequently be lower.

Not all Twitter users agree with Magic. One user noted that bitcoin cannot be categorized as a utility coin like XRP but is a successful store of value that helps investors hedge against irresponsible dovish policies, quantitative easing, and the likes.

Meanwhile, XRP Hasn’t Fared So Well
In 2019, Ripple bagged countless partnerships with banks and payments companies in a bid to expand XRP’s use case. This extensive adoption, however, only paints half the picture. Over the same period, XRP was one of the worst-performing assets with over 40 percent losses on a yearly basis. XRP is also down from its Jan 2018 all-time high by nearly 95 percent. In 2018, XRP’s market capitalization climbed to as high as $120 billion. Now it is hovering around $8.41 billion.

Nonetheless, in this new year, there is reason to believe that Ripple’s XRP could recover and finally reward its dedicated holders. Meanwhile, Ripple continues to be in the sought-after position of being a global leader in international remittances.

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NYDIG, a leading bitcoin financial services firm, has announced that it will welcome the CFO of Bridgewater Associates John Dalby to its team. Dalby joins NYDIG as the new Chief Financial Officer (CFO) in what represents one of the biggest personnel shifts from the mainstream financial industry to the crypto world. Contributing to the Greater Good The new CFO held a similar position at Bridgewater Associates, the world’s largest hedge fund, before his appointment to NYDIG. Dalby said that he is delighted to join the team and was committed to helping NYDIG deliver innovative Bitcoin solutions to individuals and institutions. The former CFO of Bridgewater Associates joins NYDIG during a period of rapid growth. The leading provider of investment solutions for BTC recently raised over $200M in additional capital from a group of strategic partners. The funds came from top institutions such as Morgan Stanley, MassMutual, New York Life, Liberty Mutual, Stone Ridge Holdings Group, and more. NYDIG also launched a global Insurance Solutions practice that will spearhead the development of bitcoin-powered products and services for the global insurance sector. According to Robert Gutmann, Co-founder of NYDIG, Mr. Dalby brings deep financial services experience to help the crypto custody firm build institutional solutions that deliver BTC safely to everyone. NYDIG to Help US Banks Offer Bitcoin In what has been viewed by many crypto enthusiasts as another step toward crypto’s mainstream adoption, NYDIG has unveiled an industry-first bitcoin solution for banks. Rolled out in partnership with fintech giant Fidelity National Information Services, the new product will enable clients of some U.S. banks to buy, hold and sell BTC via their existing accounts. According to Patrick Sells, head of bank solutions at NYDIG, hundreds of smaller US banks have already agreed to participate in the program. The firm is now engaging some of the leading U.S. banks to join in and enable ordinary Americans to get access to BTC through their existing bank relationships. Until now, many BTC adopters have been forced to go outside of their traditional banking relationships to acquire the benchmark cryptocurrency. The vast majority of traditional banks have steered clear of offering bitcoin to their retail customers. Therefore investors often rely on crypto-centric companies like Coinbase or payment giants such as Square and PayPal to purchase bitcoin. The revolutionary solution from NYDIG will facilitate banks to offer crypto assets to their retail banking clients via a seamless, easy-to-use digital experience. More Banks Are Asking For Bitcoin Top Wall Street banks only recently warmed up to crypto and unveiled plans to allow their wealth management clients bet on bitcoin. However, they have so far refrained from offering the service to retail customers. Nevertheless, more traditional banks are now asking for bitcoin as demand for the asset mounts from retail banking customers. According to Yan Zhao, president of NYDIG, these banks are under increasing pressure to offer BTC to their clients as its reputation as a store of value continues to grow. “This is not just the banks thinking that their clients want bitcoin, they’re saying `We need to do this, because we see the data.’ They’re seeing deposits going to the Coinbases and Galaxies and Krakens of the world,” Zhao noted. The NYDIG head predicts that giant banking institutions could soon face pressure to offer bitcoin to more clients as smaller banks roll out their own crypto services.

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