By Pierre Grifter
, on
August 31, 2024
, updated on August 31, 2024
-
4 minutes to read
The Ripple has been making a lot of headlines lately, all types of media are spreading information about this virtual currency. Sometimes about the legal actions from the U.S. SEC and also about the fluctuations in the prices of this currency. If Ripple is generating so much buzz, it’s surely also because it offers a lot of advantages in financial transactions worldwide. In just a few years, Ripple has managed to rise among the most important cryptocurrencies.
The value of Ripple compared to the Euro: Why so much interest?
Although Ripple has only existed for a few years, this currency is part of the most used cryptocurrencies in the world. The Ripple presents undeniable advantages from an economic efficiency standpoint. It has transaction fees that defy all competition, meaning that Ripple’s fees are among the lowest on the planet. Already, at this level, it generates a lot of interest with all the savings we can make compared to standard bank fees. The fees are so low that they are referred to as micro-fees. This is especially advantageous for those who conduct many financial transactions and also for significant amounts. Because fees are generally calculated based on the amount of the transaction, meaning banks apply rates, sometimes very high, to process these financial transactions. The second major advantage is the anonymity and security of the transactions. It’s a kind of software that is installed on your smartphone or computer. That only you can manage. This is called the Ripple wallet. Anonymity is assured because you are the sole holder of your account, it exists only at your level and nowhere else.
The value of Ripple compared to the Euro: Advantages and disadvantages
For the advantages, we have already mentioned a few. We recall the low transaction fees which lead to significant savings. The second advantage mentioned is the anonymity and security of transactions. You are the sole holder of your wallet and traceability is virtually impossible. The third advantage, which is not the least, is the speed of transactions. Here too, the Ripple excels compared to the standard banking system. Transactions are made instantly. This means that as soon as you validate your transaction, the amount in question will be instantly available in the recipient’s account. No more waiting time which can be quite long especially when it comes to international transactions.
Within the same country, interbank transfers already take time. This is a major advantage in the business world where often, the first to pay is always the first to be served. As for the disadvantages, it is also the absence of traceability and anonymity that pose problems. The other disadvantage is that prices are very volatile.
The value of Ripple compared to the Euro
As explained, virtual currencies or cryptocurrencies are very volatile in the market, which is a significant problem for investments. For transactions, Ripple finds a considerable place, but for value stability, that’s far from being the case. To illustrate Ripple’s volatility, we will make a comparison over different periods, compared to the Euro.
The figures provided are averages, based on values that have been very high and very low at the same time.
We take April 2021 as a reference. Over the last five years, Ripple has increased in value compared to the Euro by 2.49%. Given that it is a virtual currency, relatively recent, this is quite substantial. Over the last three years, a positive rate of 7.23%, which is even more significant. Over the last twelve months, meaning one year, the rate is 191.22%. Over six months, it’s 142.60%. For the quarter or three months, it’s 150.66%. For the month, it drops to 33.63%. For the week, that is, over the last 7 days, it’s even weaker at 1.42%.
We will summarize the Ripple rates compared to the Euro:
