XRP is one of the most controversial cryptocurrencies, but at the same time, it has a loyal following, even referred to as a 'cult following.' The reason? Many people believe that XRP could reach a value of thousands of dollars in the future. This may sound incredible, especially given the large number of coins in circulation. But if you understand the market mechanisms and the unique role of XRP, you will see that this is not entirely unreasonable.

Supply and demand: The determining factor for XRP price

One of the important factors that could lead to a strong increase in the value of XRP is the concept of "cold storage." When investors transfer XRP to cold wallets, this amount of coins will be removed from market circulation. If more and more people do this, the market will face a "supply shock."

When supply decreases, but demand remains steady or increases, simple economic principles indicate that prices will rise sharply. This makes traditional market capitalization calculations less significant.

The importance of global banks

Currently, there are rumors that major banks around the world are considering XRP as a reserve asset. If this becomes true, the amount of XRP available on the market for trading will decrease significantly. This means that the supply continues to tighten while demand from individual and institutional investors remains high, creating significant upward price pressure.

The value of XRP is not just a number

People often assume that market capitalization is the only factor determining the price ceiling of a coin. They argue that the value of XRP must reach 4 trillion, 40 trillion, or even 400 trillion USD to achieve a price in the thousands of dollars. However, in reality, market capitalization is just one indicator. The way this asset is traded, stored, and used in the real world is the ultimate determining factor.

Trust in the leadership of Ripple

XRP is not just a cryptocurrency; it is also part of the Ripple ecosystem, led by a team that many investors highly regard. Notably, the CEO of Ripple is known for their professionalism, confidence, and willingness to defend their views. These qualities help many people trust the long-term future of XRP.

Personal investment strategy

As a long-term investor in XRP, I believe in both the short-term and long-term value of this coin. However, I am also extremely cautious and maintain a diversified portfolio with many other ALT coins.

  • Profit-taking plan: I plan to take partial profits when the price of XRP reaches 5 USD.

  • DCA (Dollar-Cost Averaging): From a price of 5 USD onwards, I will continue to sell gradually, but it will be very difficult not to sell everything when the price reaches 10 USD.

  • Long-term commitment: No matter what, I will never sell all the XRP I own.

Advice for you

XRP may not be suitable for everyone. But if you understand how the market operates and the potential of XRP, this could be an opportunity worth considering.

In summary, the future of XRP will heavily depend on how it is applied in practice. Study, consider, and make your own decisions. Investing is a journey, and information is merely a tool for you to make the right choices.