Ripple Tries Interesting Strategies to Increase Circulation

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With the advent of Bitcoin futures contracts and the potential for cryptocurrency exchange-traded funds getting Wall Street approval in the future, volatility is starting to decrease in the markets, which means that stakeholders can return to focusing on adoption and circulation.

Spread of Cryptocurrency Integration Development

Over the last few years, the cryptocurrency world has been stuck on trading and mining operations, which can be quite lucrative, but they do not have the overall positive impact of widespread circulation. The last wave of Bitcoin acceptance in terms of retail transactions took place around 2015; at that time, a few financial technology firms were engaged in ATM and point-of-sale merchant solutions to enable cryptocurrency payments, but these efforts were ultimately eclipsed by trading fever.

One digital currency that has not given up on circulation is Ripple, which trades as XRP. This cryptocurrency has the third highest market capitalization behind Bitcoin and Ethereum, and it runs on a blockchain that is not exactly decentralized; however, this has not stopped investors from paying attention to its growth and development.

The History of Ripple’s Development

The development team behind the Ripple blockchain has taken two main approaches to increasing circulation: donations and international money transfers. The latter approach has featured a trial collaboration with financial wire transfer giant Western Union, which was not exactly impressed with the idea of the Ripple blockchain replacing its established network.

Despite striking out with Western Union, Ripple developers have continued to promote their blockchain tokens as being ideal for wire transfers and remittances; while they are instant and free, they still require conversion to fiat currency, which can be tricky during times of high market volatility.

Donations are also part of the Ripple circulation strategy. The development team has donated nearly $30 million to charities that provide classroom supplies to needy schoolchildren; Hollywood actor Ashton Kutcher has also donated millions worth of Ripple to wildlife protection organizations. Since these donations ultimately require currency exchange transactions, they can be considered to be circulating to a certain extent.

The number of Ripple coins is set at 100 billion; this is a digital currency that cannot be mined, and the number of tokens can theoretically decrease with each wire transfer. Notwithstanding the lack of mining, developers have created certain blockchain solutions that providers of financial services can use to earn Ripple tokens. Thus far, these efforts have resulted in a level of circulation that Bitcoin and Ethereum could envy, but Ripple still has ways to go before it is accepted at local convenience stores.
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