Editors News
- Cryptocurrency will be almost as volatile as gold or the stock market, as per Vitalik.
- In the long run, fees will be the only source of security for Bitcoin, says Vitalik.
In a recent interview, the co-founder of Ethereum blockchain technology, Vitalik Buterin expressed his viewpoints regarding the future of cryptocurrencies. As per Buterin, in the medium term, cryptocurrencies will settle down and become volatile like gold or the stock market.
Vitalik stated:
I definitely think that in the medium-term future cryptocurrencies will settle down and be only about as volatile as gold or the stock market. The main question is just what level the prices will settle down at. In my view, a lot of the volatility early on had to do with existential uncertainty.
Vitalik’s Concern Regarding Bitcoin
Buterin declared that if Bitcoin will not replace gold as a store of value and not replace the mainstream, it will not disappear over the world in 2042.
He added:
The math nerd way of putting it would be: the price of crypto is stuck in a bounded range, and crypto can only stay highly volatile within that range for so long until repeatedly buying high and selling low becomes a mathematically almost-surely-guaranteed winning arbitrage strategy.
Vitalik furtherly expressed his concerns regarding Bitcoin and its security. According to him, in the long run, fees will be the only source of security for Bitcoin. Also, the market dominator is currently failing to generate enough fee income to secure a system that has the potential to be worth many trillions of dollars. BTC transaction fees currently amount to roughly $300,000 per day and have barely increased over the past five years.
As per Vitalik, the Ethereum blockchain is far better built to facilitate usage and applications and is significantly more successful. Additionally, switching from proof of work to proof of stake would appear to be politically impossible given how much less security.
What is Ripple (XRP)?
Ripple (XRP) is the native crypto of the XRP Ledger (XRPL). XRPL is an open-source public blockchain launched in 2011 by Ripple, a blockchain-based payment system. XRP is used as a transaction fee on the native network and a potential payment and investment option.
Ripple captivated the interest of investors with its distinct consensus protocol. It functions based on a federated consensus mechanism to validate transactions. The network allows any user to use the validation software and verify transactions according to their “unique node lists”. Thus, transactions are validated onto the ledger within 4-5 seconds at lower costs.
Ripple (XRP) Price Prediction 2022
Ripple (XRP) holds the 7th position on CoinGecko right now. XRP price prediction 2022 is explained below with a daily time frame.
The above chart of XRP laid out a Falling Wedge pattern. In a falling wedge pattern, both the upper trend line which connects the highs and the lower trend line which connects the lows converge downwards. The wedge pattern in general indicates a trend reversal. Especially, the falling wedge signals a bullish reversal.
This pattern indicates a breakout in the price trend towards an upswing.From the above chart, we can interpret that the momentum of the downtrend is slowing down.
Currently, Ripple (XRP) is in the range of $0.33. If the pattern continues, the price of XRP might reach the resistance levels of $0.3591 and $0.3903. If the trend reverses, then the price of XRP may fall to $0.3184.
Ripple (XRP) Support and Resistance Levels
The chart below shows the support and resistance levels of Ripple (XRP).
From the above daily time frame, we can clearly interpret the following as the resistance and support levels for Ripple (XRP).
- Resistance Level 1 – $0.3950
- Resistance Level 2 – $0.5031
- Resistance Level 3 – $0.6743
- Resistance Level 4 – $0.9341
- Support Level – $0.2904
The charts show that Ripple (XRP) has performed a bullish trend over the past month. If this trend continues, XRP might run along with the bulls overtaking its resistance level at $0.9341.
Accordingly, if the investors turn against the crypto, the price of Ripple (XRP) might plummet to almost $0.2904, a bearish signal.
Ripple (XRP) Price Prediction 2022 — RVOL, MA, and RSI
The Relative Volume (RVOL) of Ripple (XRP) is shown in the chart below. It is an indicator of how the current trading volume has changed over a period of time from the previous trading volume. Currently, the RVOL of XRP lies below the cutoff line, indicating weak participants in the current trend.
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