Okay folks, we've got to give a violent update on the market. And then for the main entree this lovely evening, I want to talk about something that's trading at about 83 cents that has some big catalysts ahead. I'm going to be breaking down exactly what it is, why it's relevant, what the catalysts are, and the pros and cons. And the only thing that I ask in return for all of this and all the work that Charlie puts into these videos is that you hit that ravishing like button and also don't forget to subscribe either.

Also, prices on Ziptrader you will go up this week for the first time since launch. So if you do want to lock in lifetime access for the current one-time fee, make sure to go ahead and check it out. Coupon code still active. Okay, so saying it was a very nice day in the market today is quite the understatement.

We've had a ton of dip buying this week and it's only Tuesday. The market has carried on the overall trend of every single market dip being bought up very, very quickly. After so many false dips this year, the market has been trained over and over again to rebuy it pretty much every single dip. That said, if you're going to buy the dip on place that you believe in when the market is selling off, make sure that you always keep in mind that dips don't have to recover as quickly as this one did.

You should always train yourself to yes, buy discounted opportunities, but not expect instant returns because there are going to be a lot of stretches of time where a dip does turn into a triple layer or a fripple layer dip. And because you never know exactly when those cases are going to come, you always want to be very, very strategic with how you buy dips. You do want to take advantage of discounts, but you don't want to spend yourself into an oblivion where you have a three, four, five, six, seven layer dip and you don't have any chips left to dip in the sauce. I went too crazy with the uh, chip and dip analogy, but I got to say how insane this is.

After nine days of overall down trending, we've once again broken our red directional Sma line back into an upper direction and we're not too far away from all-time highs in the broader market. But anyways, enough of that. Let's go ahead and get on to the main entree. So Xrp.

This is a crypto asset that we haven't spoken about much on the channel before, if ever, and it's the eighth largest in the crypto ecosystem right now, and it has one of the more unique and in some cases, controversial stories. It also has a very loyal following the Xrp army, who I'm sure will find their way into the comment section. If I make any mistakes with the coverage on Xrp, you are more than welcome to, because honestly, quite frankly, it is pretty nuanced. I'm just going to present my own due diligence and my own thought process, but it should only serve as a foundation to start and encourage you to do your own due diligence.

So, Xrp is the native digital currency of a company called Ripple, whose goal is to provide secure, more efficient payment options to members of the online community via a global network. Xrp and the Xrp ledger, which is the network that it transacts on, are incredibly efficient. For the global payment system, you consider their transaction settlement time compared to some of the biggest cryptocurrencies, Bitcoins at 60 minutes, Litecoin add 10 minutes, Ethereum at two minutes, whereas payments of Xrp moving across the Xrp ledger, settle in at just about four seconds. In terms of stability, Ripple says Xrp consistently handles 1500 transactions per second and can scale to handle the same throughput as Visa and from the perspective of payment processors.

Obviously, this is a big, stinking deal. To understand why it's so much faster than the other currencies, you have to understand the different types of systems. here. With any cryptocurrency, you have to have some mechanism for verifying transactions in order for it to be a decentralized currency.

Generally speaking, you see either proof of Work or proof of stake Bitcoin For example, Miner Mara mines for Bitcoin using little computers and servers that solve complex problems with their computing power and get Bitcoin as a result and a reward. Whereas with Proof of Stake, people take a bunch of their cryptocurrency and stake it in order to get a return. they're effectively locking it up in order to help verify transactions on the network and are rewarded as a result. Now, with Xrp and the Xrp ledger, it doesn't have either of those systems.

Each transaction is verified using many different individual validators who form a consensus algorithmically as to whether a transaction is to be approved or not Under the system. it can confirm transactions much faster and with very minimal electricity use. But anyways, let's dive into the synopsis breakdown of this currency. So starting from the top, the goal of Xrp and the Xrp ledger is essentially to be the cryptocurrency medium for banks and the global network of payments.

The goal is for it to facilitate massive exchanges for a wide variety of Fiat currencies, other cryptocurrencies and commodities. Ripple again has the goal of replacing leading money transfer networks for remittances and currency conversions, providing settlement layers between major financial institutions. Of course, Xrp is the native coin of said Ripple, but most notably, Ripple is trying to be a replacement for the current, inefficient Swift system. This is the system that we currently have in place that handles a large majority of the transactions that flow around the world, But the problem is, it's pretty damn inefficient.

It takes about three to five business days to handle transactions depending on location, and currency conversions, which pairs where they're going, so on and so forth how many different banks they're traveling through. Whereas the Xrp ledger system can be instantly settled in three to five seconds. So what is the market potential here in a competition between Xrp and Swift? Well, the Us Treasury says the Swift system alone handles about 5 trillion per day in transfers and by switching to using the more efficient Ripple system utilizing Xrp liquidity pools. Ripple says that the banks can save 40 to 60 percent of their transaction costs.

Say that you're based in the Us and you want to send 100 to a friend in the Uk. What do you do? Well, you go to a Us bank. You say I have 100. I want to send this to my friend in the Uk.

What do they do? Well, they go, and they use the Swift protocol. most likely. processing times takes several days, you pay high fees, and then eventually the money goes into your friend's account over in, say, London and they get a certain amount of pounds minus whatever the transaction fees were and the conversion fees. With Xrp and the ledger, the bank converts it instantly from dollars to Xrp and then on the other end, from Xrp to pounds.

By using Xrp as a bridge, you skip the entire processing step of the middleman. Even worse, under the current system, for other country conversions, most currencies are converted into Usd before hitting the final destination. for example. Let's say an Aussie wants to send money to the Uk, they will likely use a bridge currency to convert.

The most common bridge currency is the Usd. So for somebody who's in Australia trying to convert and send money to somebody in the Uk, the bank may have to go and use those Aussie dollars. Convert that into U.s dollars, send it to the opposing bank over in the Uk, and then the Uk has to then go and convert those Us dollars into Uk British Pounds, whereas directly converting to Xrp and then to the British Pound takes out the need to convert to Usd in the first place and takes out the middleman. all the extra processing times and extra fees that would result with having to convert through middlemen and people who actually have the liquidity to convert said currencies.

So when it comes to the question of why not just use regular Fiat? Well, it's cheaper and faster to settle payments with Xrp than Fiat exchange pairs with bridge currencies. You need something that has on-demand liquidity. Right now in the world, the biggest bridge currency is again the Us Dollar, because there's on-demand liquidity at most financial institutions around the world. The problem is that converting everything into Usd is very, very inefficient.

If there's a better alternative, you skip that step and you convert directly into Xrp. You get instant settlement. And why does this work? Well, Xrp and the Xrp liquidity pool reduce the need for banks to hold foreign reserve currencies on hand instead of a bank having to hold 10 or 20 or 100 different currencies and be able to convert those on the spot. or have to go and pay to contract with somebody that is going to be able to convert those on the spot.

Well, they can just go ahead and use the Xrp liquidity pool. If you have two banks and one bank has Aussie Dollars and the other bank has Bulgarian Lavs, Well, maybe it's going to be very, very difficult to find a currency pair to trade with that. Maybe you have to trade that into Us Dollars or eventually into Euros and then into labs. But with Xrp, the Aussie Bank convert it right into Xrp and the Bulgarian Bank and convert it right into what Bulgarian lefts.

You can see how useful that would be for uncommon currency pairs, but it also cuts down transaction times across the board dramatically and fees dramatically regardless of what you're converting into. In terms of proof of concept, 300 financial companies have partnerships to some extent with Ripple already B of a Banco Santander, American Express Moneygram, which is a leading remittance platform which uses Xrp liquidity pools according to Mexican crypto exchange bits. So, Xrp is moving around nearly 10 percent of remittance volume from U.s to Mexico already, and that's one of the biggest remittance corridors in the world. now.

What are the problems? What's the catch? Charlie? Well, first of all, there's a class action lawsuit filed against Ripple in 2018, and they allege that Ripple led a scheme to raise hundreds of millions of dollars through unregistered sales of Xrp tokens, and at the end of 2020, the Big Dogs came in. The Sec alleged as well that Ripple is selling unregistered securities, saying that Ripple used the sale of Xrp to raise capital for business operations, and essentially thus represents an investment in the company itself, similar to a security. And of course, because of that, a lot of mainstream cryptocurrency brokers haven't wanted to continue to allow it to be traded on their platforms, because, hey, they're cryptocurrency brokers, not security brokers. And of course, at the end of the day, the big uncertainty cloud that is holding Xrp back right now is whether or not Xrp is or isn't going to be found as of security.

My take on this is it shouldn't really be considered a security. A security attached to a company means that you own a certain percentage of said company and you have a financial stake in what it's doing and what its results are. With Xrp, you don't own any of Ripple, nor do you have any rights within the company. Ripple also doesn't have the ability to issue more coins, it just has a lot of pre-mined coins.

Now, in terms of Catalyst, Xrp isn't traded on many platforms, but we'll open up again after the various lawsuits are won. Or at least we get enough clarification on whether or not this is a security coinbase and many others again de-listed Xrp pending the result of these court cases, and so it's held back a lot of retail demand and the minute that those reopened, you'd expect Xrp to have a lot more capital flow into them from retail. Now more importantly though, because this is a banking crypto, a big financial services crypto, It has a lot of huge adoptive potential if the lawsuits are won, and Ripple's Ceo says the main case will likely end in 2022 if it's a positive result that would open up the floodgates for many financial service payment providers to use Xrp, and I think that it would completely change the game. It's very difficult to make a case for using the current Swift system when this system could potentially be a lot more secure and a lot cheaper and faster and overall more efficient.

Next, the big cons. Well, of course, the biggest con is clearly that it's still uncertain whether the court case will decide in their favor or not, and the Sec is trying to assert their dominance all over the cryptocurrency market. And so even if the court case is found to be in the favor of Ripple and Xrp, the Sec could still figure out a new way to attack it. And in the meantime, a lot of the bigger, more heavily regulated players in the financial services space simply won't use Xrp until the legal situation is more clear.

If Xrp is designated as a security in the U.s all of a sudden, guess what happens? Well, a lot of the real world utility of Xrp goes down the toilet because all of these other currencies don't have that same huge regulatory burden as Xrp would if it's designated as a security, and big institutions aren't going to want to trade with a security when they can just choose something else that isn't next. And this is something that a lot of people debate on. But the truth is that Ripple does have a lot of power over the dynamics that drive Xrp and Xrp ledger, which question the amount of decentralization you're getting with this financial institutions are dependent on Ripple to provide the actual liquidity for transfers, which is arguably one of the biggest value add aspects of Xrp and Ripple controls that repel. Also maintains unique validator node lists for transaction verification, which which again, if they are providing the validator list for people to choose to verify their transactions with, well, that does create more of an uneven power structure, but but at the same time, users can opt out of this so they do have the option of not using Ripple's recommendations.

Xrp and Xrp Ledger: The entire system is decentralized in theory, but Ripple just has some very important levels of control over it. For example, the limit for Xrp coins is set to 100 billion, but only around 41 percent of those have been released into the market so far, and thus effectively, based on what they decide to do with them, controls the supply and circulation of, well, Xrp. That, of course, always raises the risk of, well, what if they decide to do something that's not in the best interest of people who are holding Xrp. However, it is crucial to mention that they did know that this is going to be an issue, and so in 2017, they put a large part the vast majority of their reserve coins into escrow.

and under the rules of the escrow, they only get access to a billion more a month, Which means they only get control of the supply over time and get just enough to support their network utility. In terms of other things to talk about, it's also true that a lot of the large financial institutions that work with Ripple don't use Xrp at this point, but arguably they would for increased efficiency, especially at more mature levels. It's just that at this point, we need to get through this case flood and we also have to get through this overall early development fund. Okay, lastly, some big things to keep in mind here: Misinformation on Xrp is rampant.

Hopefully, I wasn't spreading any misinformation with this video, but sometimes there are things that I can miss. Certain points that I should go more into in videos, and you can let me know if I didn't go into something that I should have gone into. But in my own research, I've seen so many different conflicting talking points that it's insane. There's a lot of people that believe things about Xrp that are completely untrue, and others that believe things that just quite frankly make no sense at all.

I think that Xrp is a very, very misunderstood market, at least on the retail side. Because of this, the level of due diligence required to really, really understand this goes far and beyond the scope of this video. So when you're doing your own research, you have to make sure that you're very, very careful about what you're reading and you have to check it about two or three different times from different sources. Aside from that, it's also worth mentioning that Xrp missed a large portion of the euphoria for 2021's overall Crypto bull run.

And that's because right before the main bull run started, the Sec started their massive litigation back in December of 2020.. So you had that huge dark cloud holding it back. Xrp still went up, but the cloud stopped it from going into new all-time highs like Bitcoin had. Now, in terms of whether you should buy it, you have to have to have to balance not just your take on the technology and proof of concept that it's shown so far, but also the inevitable uncertainty with the court system.

A lot of people that are very, very bullish on extra pure like yeah, they're going to win everything in the courts. The courts don't care about the technology. They don't give a shite, if anything to better the technology, the more they're likely to say hey, yeah, this is a security. Screw it.

Unfortunately, we've seen a lot of situations where the government has gotten in the way of a lot of these innovative technologies. and a lot of times, no matter how great the technology is, it still gets bludgeoned. So at the end of the day I would say hey, this is going to go up a lot if the court goes in their favor, but it could also not go in their favor and it could get decimated. There is some application for it outside of the Us, but it substantially reduces the utility for it if you can't transact Xrp in the biggest main country.

But anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or join us on Ziptrader Circle. If you're looking to join us at Ziptraderu for lifetime access to our step-by-step lessons, our private chat, our daily morning briefings, as well as our price targets. Well, I'll go ahead and put the link to that below prices for Zip Trader you will go up this week and of course our coupon code is still active, so now's a good opportunity to check it out if you haven't already.

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