I have remained a consistent supporter of ripple (CCC:XRP-USD) while continuing its fight against the Securities and Exchange Commission.
Crypto has played David against SEC’s Goliath and looks likely to emerge victorious.
This alone should give him plenty of fuel to move higher, and there’s a lot to like next, making it a long-term investment worth considering rather than short-term play alone.
While there is a strong overall narrative surrounding Ripple and its XRP, let’s start with what people want: returns.
Whether we are talking about stocks or cryptocurrencies, investors want to know the same thing: how much will they be worth?
In the case of Ripple, the news is positive. According to CryptoNewsZ, critics might reasonably expect this. The blog stated that XRP could return to its highest level at $4 by 2023.
Meanwhile, WalletInvestor expects prices of $1.51 a year from now and about $3.65 five years from now.
A closer look at Ripple
You said there is a strong narrative surrounding Ripple’s growth situation, so you might as well shake your head. After all, you just pointed out that it could take a reasonable five years to see a 4X return on XRP at current prices.
I would like to point out first that these forecasts are not quite the same as those made by Wall Street analysts for established stocks.
There is simply no track record for cryptocurrencies and few, if any, pricing models. So who says XRP can’t rise much more?
But even if it doesn’t, let’s assume these predictions are correct. If so, these 300% returns are very attractive.
They will certainly stop the real risk seekers who are filling cryptocurrency investing right now, but Ripple is an established company with a real benefit.
Shiba Inu (CCC:gray dollars) returns to type has a nearly zero probability.
One reason Ripple is holding back its rally is its ongoing legal battle with the Securities and Exchange Commission.
SEC condition weakens
The general consensus is that Ripple will win its ongoing battle against the Securities and Exchange Commission. I wrote about the recent promising updates for Ripple a few weeks ago. My belief is in line with the general consensus that Ripple will prevail.
My colleague Muslim Farooq feels much the same way. He noted that the SEC uses stalling tactics with regard to opening documents that might harm its case. These and other recent events bode well for the defendant.
What do you do with XRP?
The answer to this question largely depends on what you are looking for in a cryptocurrency investment.
Are you looking for the next cryptocurrency that can explode and turn a relatively small investment of $1,000 into a million dollars? If so, XRP will not satisfy your risk profile.
The opposite is true for cryptocurrency investors who are looking for an asset that is highly likely to provide attractive returns now and in the near future.
XRP will almost certainly prevail in its case against the Securities and Exchange Commission. That provides a short-term incentive to push it higher in the coming months.
In the long run, the global payments platform appears to have a very good chance of undermining SWIFT’s dominance in this particular place in finance.
This was part of the promise around decentralized finance and cryptocurrencies and this is why Ripple and XRP make sense.
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At the date of publication, Alex Sirois did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.
Alex Sirois is an independent contributor to InvestorPlace whose equity investing approach focuses on buying and holding long-term stocks and creating wealth. Having worked in many industries from e-commerce to translation to education and benefiting from an MBA from George Washington University, he has brought a variety of skills through which he filters his writing.