A crypto-currency called Ripple has become the second most valuable virtual cash system
Over the weekend, the value of the digital currency hit of more than $100bn (£74bn), according to some market monitors.
This rating is higher than the other common crypto-cash-system – Ethereum.
Each Ripple coin called XRP, is now worth around $2.34 – far higher than the half cents, they were worth a year ago.
Bitcoin is still the most valuable crypto-currency. The value of 16.8 million bitcoins in circulation, worth a nominal $231bn. Each bitcoin has a value of approximately $13,580.
Ripple has been trying, as a safe alternative to other crypto-currencies by emphasizing his connections to already existing financial institutions.
Ripple was created to accelerate banks and modernize how you pay each other. So far, more than 100 banks the use of its payments system. The Bank of America and UBS are among its customers.
Analysis – Rory Cellan-Jones
“Forget Bitcoin, this is old hat – it is time, in Ethereum, Litecoin, and Ripple.”
So the message goes from the crypto-currency enthusiasts when critics mention Bitcoin will fail as a currency, and its wasteful use of energy in the mining process.
You can use a doubtful measure, market capitalization – to show just how significant a force, a crypto-currencies such as Ripple, or rather the crypto-currency, XRP.
When investors speak of the “market cap” of a company like Apple about $870bn now – you can reach the number by multiplying the number of shares to calculate the price, the value of the business.
That the price can move pretty sharp, but you are unlikely to have problems, the sale of their shares and turn them into cash.
Ripple’s market cap was calculated by multiplying the number of XRP coins in existence by the current dollar exchange rate
But in contrast to Apple, Ripple is not a reliable assets to secure values, or revenue, rate, and change it to “fiat currency” – the dreary old concept, which allegedly prove can for extinction – in heading, it is difficult, when all the heads for the exit at once.
Like everything associated with crypto-currencies it is best to their market caps with a sack load of salt.
Growing adoption of the Ripple seems to be driven be a rise in value.
Over the weekend, three of Japan’s major credit card companies revealed that they had signed to use it, payments and payroll.
To treat prior to this announcement, some South Korean and Japanese banks announced a pilot-project, Ripple cross-border payments.
Both events are believed to be the bump in value have moved.
In contrast to other crypto-currencies, Ripple coins or tokens are not broken by the members of the network, the processes, and transactions. Instead, the coins will be mined in advance and slowly is released, how the network is used.
Eddy travia da, head of the crypto-cash financing Coinsilium, told the Financial Times that the higher value could be a problem for Ripple had done well to win banks over its technology.
“The concern is that, if the price increases, it shifts the focus from the technology to only the speculation,” he told the newspaper.