I’ve done a very cursory analysis on Ripple years ago, this is not the findings of that analysis. This is rather an analysis of the chatter I’ve seen around Ripple during the recent price pump.
Let’s establish that there are ultimately 2 types of Blockchain investments.
- Investments in blockchain currencies.
- Investments in businesses using or catering to blockchain.
What I am seeing a lot of on social media around Ripple (and many other projects for that matter), is investors not understanding which of these two investments they have made.
This is not a new phenomenon, as an early contributor to Dark Coin, I saw first hand as my investment turned from investment into a cryptocurrency to an investment in a company (DASH). When one becomes the other, does this distinction really matter? It matters if the company can succeed simultaneously with the currency failing. Disclosure, I no longer hold DASH.
Ripple hodlers need to ask themselves a couple of questions.
- If Ripple the company succeeds, how does the Ripple token benefit?
- How can the Ripple currency succeed without the company behind it?
I can’t answer either of those questions with something investable. If you can, please comment. If you've enjoyed this insight, please visit my blog at capitalistdog dot com
