How Ripple going to change the entire payment network and how to derive your profit out of it
In this AI age, world banking system become so much outdated that in the case of transferring money from one country to another country rather than taking the bank's help its better to book a flight ticket and hand over the money to the other person is much optimal, as in present banking system it takes 3 - 5 days to transfer the money from one country to another country.
Nowadays to transfer money from one country to another country banks use a system called SWIFT, which is too old-fashioned, too much centralized and inefficient. As if someone is trying to send the money from India to the USA then the person not only have to wait for 3-5 days but also it comes with other pain too like to fulfill the transaction the sender has to pay a hefty charge of 5-12% though there is no surety of reaching the money on time as the system is too complex and outdated.
But with the help of Ripple the whole process can be done within 4 sec, not only that here the charge is too minimal which indeed make the system more prudent, reliable and cost-effective. For all these reasons I think that it not only able to dethrone the existing system but also some of the black marketers will also be kicked out from the system.
Ripple is not only helpful for the remittance but also it is the best option for the microtransactions too. In today's world most of the retail transactions are managed by the two co. namely Visa and MasterCard. Though both these co.'s are great in their field, though in the case of the cost-effectiveness, they are not the best suitable option. For processing a transaction these two co.'s used to charge 2800 times more than the Ripple.
Ripple not only built on the fast, cheap technology but also it has a highly-dedicated, experienced team of finance and technology professionals fueling its growth. They are either aiming to integrate with credit card processors like Visa or MasterCard or will simply take their market-share. Either way, Ripple is going to be used more in the transaction process which will indeed help to increase the price of the XRP(digital currency of Ripple).
According to CoinMarketCap, there are currently 38,739,144,847 XRP in circulation with a total of 99.99 billion XRP in max supply, held by Ripple leadership and a fund of XRP used to ease the price growth of XRP as the company increases the volume and attention on their products.
$9,000,000,000,000 is Visa’s yearly total payment processing volume.
So if all the volume of the Visa's payment network convert into the Ripple then XRP can get the of VISA's valuation, then let's see how the value of the XRP will be changed
$9,000,000,000,000 / 38,739,144,847 XRP
= $232.32 XRP
Visa is not the only co that it can replace but also it can grab the market share of the MasterCard too.
MasterCard is currently processing $4,000,000,000,000 transactions, if all the volumes shifted to the Ripple then let's see how the value of the XRP will be changed
$4,000,000,000,000 / 38,739,144,847 XRP
=$103.25 XRP
Now, if Ripple is going to b used more then the valuation of the XRP will also increase which indeed help the price of the XRP to be increased in the future. Also the XRP is also likely to be used more as if someone is sending money from the USA to UK then the USD will be instantly converted into XRP, sent to the final destination at the bank in UK, and then settled in Euro.
As Ripple is a payment network which has its own digital currency/virtual currency, financial institutions will add the XRP to their holdings as an Asset Diversification strategy in their Portfolio which also helps the price to be appreciated in future.