A New Era for Crypto: Why XRP Stands to Benefit
The cryptocurrency community is celebrating Donald Trump’s election win, with Bitcoin reaching all-time highs of over $85,000. Trump’s pledge to reform regulations has instilled confidence in the sector, and I believe it will continue to thrive. While Bitcoin has almost doubled in value this year, my top cryptocurrency pick is not the market leader.
The Underrated XRP
XRP, created by Ripple Labs founders Brad Garlinghouse and Chris Larsen in 2012, has struggled to find its footing due to a Securities and Exchange Commission (SEC) lawsuit. The SEC claimed that XRP was sold as an unregistered security in 2012, but Ripple and its founders emerged victorious in court. Although the SEC has appealed parts of the decision, Trump’s promise to remove SEC Chairman Gary Gensler could be a game-changer for XRP.
A Regulatory Shift
Gensler, who led the charge against Ripple, has been viewed as an obstacle to crypto advancement. His removal could pave the way for a more crypto-friendly administration, potentially leading to the approval of spot XRP exchange-traded funds (ETFs). This would increase access to XRP and drive up demand, much like Bitcoin ETFs have done.
A Solid Use Case and Limited Supply
XRP’s use case in cross-border payments, with its nearly real-time settlements, sets it apart from other cryptocurrencies. Its fixed token supply also makes it an attractive hedge against inflation, which economists predict will rise under Trump’s policies.
Why XRP Over Bitcoin?
While Bitcoin has been the darling of the crypto world, I believe XRP has more room to grow. Its underperformance this year, combined with its solid use case and limited supply, make it a more compelling investment opportunity.
A Word of Caution
Before investing in XRP, consider the broader market landscape. The Motley Fool’s Stock Advisor team has identified 10 stocks that could produce significant returns in the coming years. While XRP wasn’t one of them, it’s essential to diversify your portfolio and stay informed about market trends.
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