Rumors about Amazon getting into the blockchain technology and utilizing cryptocurrencies have long been floating in the air. While there are not yet any official announcements by Amazon, here are three reasons why Ripple is a great candidate for Amazon’s digital currency needs.
Swift, cheap transactions
Instability in cryptocurrencies has built fortunes for some investors, but that is absolutely beside the point for Amazon. The one thing it will ask from any digital coin as an essential for adopting it will be stability.
Bitcoin’s services were dramatically improved by Ripple. Ripple transactions only take ten seconds at the most compared to Bitcoin’s average of 10 minutes (at the least). Ripple transactions are also much cheaper with the usual fee set at 0.00001 XRP.
Though XRP has the possibility to reach $10 per token, which is quite far away yet, each transaction would be a cent of a penny. These features build Ripple as a cryptocurrency that can finally deliver on Bitcoin’s promises at a practical level.
The rise in supply lowers volatility
Another advantage of Ripple is its lower volatility, which has something to do with its large supply.
Bitcoin mining will stop at twenty-one million coins. This makes each Bitcoin a scarce resource and a special asset to own. Ripple’s supply is much higher and all of it has been mined already. There are hundreds of billion XRP tokens in the world and fifty-five billion of those are held in escrow by Ripple Labs.
Currently, Ripple price does fluctuate as well, but the large amount of currency that will end up being in circulation will dampen the fluctuations enough to make XRP usable in the real world. Ripple’s growth, compared to Bitcoin, has been slower but steadier.
Lower prices per coin don’t scare people off
Bitcoin is absolutely valuable. At the time of writing, Bitcoin is trading at $7,400. The problem here is that the really high price is daunting. This is where Ripple has another advantage: the high token supply will keep prices manageable which, in turn, will make it a lot more consumer-friendly.
Since Amazon is all about customer satisfaction, whatever coin it chooses must bring more people in instead of scaring them away. This is just as essential as stability and short transaction times. For this, Ripple is one of the best candidates.
While Amazon is still not making its official announcement, we can just hope that Amazon would decide to take on the cryptocurrency market and help boost the crypto economy as a whole.