Reality Check: Why XRP Can Never Get To $1,000

It’s easy for us to fantasise right? Everyone is looking for the next Bitcoin or the next Ethereum since we all missed the opportunity of making huge wealth through those means. The best advice people would tell you is look for a low cap coin and buy them now they are low cap because it’s easier for them to grow in value and give you huge profit. We have seen this happen in the past, look at Dogecoin, was a very low cap coin till it pumped so hard and changed people’s lives. The lucky ones are those who bought it when it was extremely undervalued, not sure about now.

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In the top 10 coin list XRP is one of the listed coins there, the coin has been in existence for more than five years. But the price value is very low. It’s sitting on 51 cent right now, which is below $1, any crypto newbie would fall into the low price trap. Not just newbie, anybody can fall into the low price opportunity trap. Your thought would be if you buy XRP right now it’s 51 cent, if it gets to $100 you would have made over 19,000% profit, your $100 investment would be $19k. That is a lot, but I am sorry to disappoint you and burst your bubble, I don’t think it’s possible for us to see XRP at $100, this means that $1,000 price is almost impossible.

First of all, the market cap of XRP right now is $51.495 Billion, which is quite high for a coin that is below $1, this means that the supply is very high. The total supply is currently at 99.9 Billion while the circulating supply is at 53.175 Billion. You see that is a lot. Circulating market cap is at $27.39 Billion market cap. This means that if we expect to see the value of XRP get to $1,000 the market cap will have to increase to over $50 Trillion. You see how outrageous it looks right? Because where will this money come from to be invested in XRP alone? The US stock exchange is not up to $50 Trillion. The total crypto market cap is just above $1 Trillion, so where is the $50 Trillion coming from? You have to sell the entire U.S stock to invest in XRP to have the price of 1 XRP get to $1,000. The only way this is possible is to reduce the supply of XRP drastically.

Posted Using LeoFinance Alpha