XRP Explained Simply for Beginners

XRP Explained Simply for Beginners

xrp truly one of the OG Original
Gangster cryptos xrp launched wait for
this 14 freaking years ago some even say
that xrp is a sleeping giant ready to
wake up and prove all the haters
wrong others saying that xrp is in a
coma and someone just needs to pull the
damn plug already and end the misery of
bag holders who’ve been underwater for
years what’s interesting however is that
other than Bitcoin xrp is the oldest
crypto to be in the top 10 by market cap
so what exactly is going on here well
today we’re going to peel back the onion
dive into the layers of what xrp
actually is and try to explain it so
simply that even your great aunt Eloise
would understand what the heck xrp is by
the end of this video now before we dive
in you do need to know no one has paid
us to make this video the information
that you will find contained here in
within this video is provided to you for
free for educational purposes this is
not a recommendation for you to go out
into buy sell or hold
xrp okay keep that in mind furthermore
you can see my full risk statement on
crypto because crypto is risky you can
lose all your money also portfolio
disclosures about all the coins that I
own all my Venture invest don’t own xrp
by the way you can find that in the
YouTube description or the pin comment
over on X now that all being said when
looking at xrp there are four major
buckets that we need to explore Ripple
Labs The xrp Ledger the xrp token and
ripple net a lot of stuff going on here
what we’ll discover is that these
buckets are all quite interconnected and
work together to form the xrp ecosystem
okay so back in 2012 Ripple Labs was
launched in San Francisco as a
technology company looking to
revolutionize crossborder payments for
banks and institutions cool idea
especially all the way back then that
was the company’s Mission then and it
remained GS their mission to this day
the problem Ripple is trying to solve is
the fact that crossborder payments
between all those big Financial players
the big Banks all that kind of stuff
they operate on something called the
Swift system that was developed in
1973 it’s the future of Finance guys ah
Swift hey th heavy lifting back in the
day but Swift is a global
telecommunications Network that
facilitates payments and mesh and
related transaction data between all the
world’s Banks about 11,000 institutions
in 200 countries are part of the Swift
networks basically everyone everywhere
but it’s a wellknown fact that Swift is
a pretty damn Antiquated Dela
Communications Network for finance so
most payments especially those that
involve multiple currencies often take
several days to settle and are fairly
expensive when compared to crypto
transactions so Ripple labs came along
and conceived of xrp and an attempt to
build a new foundation for the 21st
century payment Network a crypto payment
Network fundamentally the xrp ledger
works similar to any other blockchain
out there it operates as a single Ledger
but it’s distributed and decentralized
across a Global Network of computers
anytime that someone makes a transaction
with the xrp token the trans transaction
is then recorded and becomes permanent
across the global Ledger now just to get
a little bit technical here for mon
don’t worry we’re not going to go too
crazy the computers that operate xrp’s
Ledger do not use a proof of work system
like Bitcoin or a proof of stake
consensus mechanism like we see with
ethereum and others instead they use the
Ripple protocol consensus algorithm
something unique in the market
essentially all the computers
independently propose a list of
transactions that they think should be
included in the Ledger’s next block the
computers share and compare their
proposals with each other and the
proposals are then revised based on the
shared information and then the
computers vote on The Proposal that they
believe to be the most correct now this
is all done with Advanced algorithms
obviously and it results in a global
consensus for the state of The xrp
Ledger and all the transaction
settlement occurring every 3 to 5
seconds on The xrp Ledger additionally
xrp’s consensus mechanism is not energy
intensive so this is something that
you’ll hear criticized Bitcoin
criticized for so transaction fees are
extremely low at a tiny fraction of a
penny on average so all that stuff’s
great now we’ve got the xrp token let’s
talk about this the native crypto for
The xrp Ledger is xrp xrp has a max
supply of 100 billion tokens all of
these were created when The Ledger
launched in
2012 currently out of the 100 billion
tokens 55 billion are in circulating
Supply 39 billion are in escrow
contracts held by Ripple labs and these
tokens are periodically sold into the
market or used to fund network
operations and to promote liquidity
across different exchanges offering xrp
finally it’s thought that the remaining
six billion tokens are held by Ripple
outside of these escrow contracts so all
right before we continue let me just
interrupt the flow real quick because I
want to let you know about something and
that is the best damned newsletter in
the cryptocurrency industry just happens
to be my newsletter I know it’s called
wealth Mastery it’s freaking awesome
every week my team and I are working
hard to bring you the latest and
greatest and best money making insights
and value on airdrops altcoins deep
Dives on altcoins nfts technical
analysis crypto memes charts all kinds
of stuff you can join 120,000 plus
weekly readers and sign up for free
using the link Down Below in the
description
so that being said now we started this
discussion by saying that Ripple lab’s
mission is to create a 21st century
cross border payments Network so you
might be
wondering well how the heck do they do
this well that brings us to Ripple net
and once you understand how Ripple netw
works you’ll see how each piece of xrp
fits together Ripple net is a software
program that connects together banks
financial institutions and companies
right across the globe for payment
services therefore Ripple net is a
direct direct competitor to Swift this
way ripplet works in a very simple way
actually whenever an institution wants
to send a crossborder payment ripplet
uses the xrp currency as a bridge
currency in order to facilitate a
transaction between any two parties with
their own preferred currencies for
example suppose that the Bank of America
and that the bank of Japan are rippled
net members if the boa needs to send a
$10 million payment to the
boj once boa initiates the payment
Ripple net then swaps 10 million in US
to $10 million worth of xrp in boa’s
ripplet account then that xrp is
transferred to boj’s Ripple account
happening in of course a couple of
seconds and at that point the xrp is
swapped again into $10 million worth of
Japanese Yen and then transaction is
complete it’s a pretty quick and
seamless process and the entire process
can happen in under 20 seconds from
start to finish and for a very very low
fee and in our example you’ll notice
that there were a total of count it one
two three transactions
involved xrp so USD to xrp xrt transfer
between the two accounts then xrp to Yen
therefore these three transactions would
all be recorded you guessed it back on
The xrp Ledger now apparently over a
hundred different financial institutions
are actually members of Ripple net
including some really really big banks
in the USA in Canada UK Singapore Japan
Thailand and other places as of April
2023 it’s thought that Ripple net has
processed a total of $30 billion in
transactions since its Inception which
sounds like a big number but then you
realize that has been around xrp’s been
around since forever for comparison
Swift processes about $150 trillion in
value annually okay so ladies and
gentlemen if you got all that then you
understand xrp and what it’s all about
now let’s discuss risks and
opportunities this a juicy one so stay
tuned the most serious risk I see is
xrp’s tokenomics see here’s the deal
close to half of the hundred billion
tokens are controlled by Ripple laps
that of itself is problematic right and
we’ve seen Ripple Labs selling huge
amounts of xrp over time then there’s
the fact that the computers that run The
xrp Ledger do not earn xrp as a reward
so if you combine that with the fact
that xrp’s primary use case is as a
bridge currency then it seems like we’re
a bit stuck in some kind of almost
Purgatory like situation where billions
and billions of xrp are serving as this
digital intermediary but there’s no real
mechanism that really works to add value
or scarcity to the Token itself it just
goes back and forth Changing Hands no
burn mechanism there’s no great
incentives to hold on to it now to be
fair there’s actually an xrp burn
mechanism so I want to be clear about
that but such a tiny fraction of one xrp
is burned with every single transaction
that it’s basically an irrelevant
mechanism right so it’s not really
meaningful at all so I’m just not
persuaded that there’s this you know
really long-term strong value case here
for the xrp token case Point look at
xrp’s Price action this chart pattern is
what we like to call pain and suffering
ouch look maybe it’s going to get some
giant Catalyst that sends us just
absolutely ripping higher the cycle
wouldn’t be surprised but what if it
doesn’t then there’s the
competition I get the idea of xrp being
used as a bridge currency on ripplet
it’s a compelling idea it was especially
compelling when they brought it out all
the way back in the day it’s a cool idea
but the same can now be done with tons
of other cryptocurrencies and stable
coins on other protocols that are just
as cheap and have better token
mechanisms the use case used to be super
compelling but I honestly don’t think it
is so much anymore Jack M’s strike for
example doing something similar with the
Bitcoin protocol why wouldn’t you want
to use the Bitcoin protocols strongest
computer network in the world so when I
look at xrp’s tokenomics and then add it
all up looking at all the other
competition looking to disrupt
crossborder payments it gives me pause
right a bit of concern about xrp
future fate finally there’s the ongoing
litigation between Ripple and the SEC
and again my hats off to the Ripple team
for fighting the good fight here these
two been battling out in the courts
since 2020 the SEC sued Ripple arguing
that the company was selling
xrp as an unregistered security Now
Ripple did receive a partial legal
victory in 2023 from a federal judge and
my congratulations to them that judge
ruled that the xrp token in of itself is
not not a security great victory for the
whole crypto industry thanks Ripple Labs
however the case is still ongoing and an
unfavorable outcome could hurt the
protocol and the token we shall see of
course how that plays out now what about
the opportunities there are
opportunities I know we’ve been kind of
trashing off there opportunities so it’s
possible xrp wins its case against the
SEC and for one reason or another
achieves really just massive success in
onboarding tons of Institutions many
many more than they currently have onto
Ripple net and that they thereby become
a real serious competitor to Swift all
while beating out all the other crypto
competition and Banks themselves because
central banks are now rolling out
Central Bank digital currencies which
are again competition to what they’re
doing here then one way or another the
value of the xrp token breaks out of its
pain and suffering pattern and starts to
moon this is all possible but guys you
know I want to shoot you straight here
I’m I’m not placing any bets on xrp it
was one of the first altcoins I ever
bought actually but I’m not going to buy
anymore there’s a just too many things I
don’t like about the way xrp has been
going and I hope that they have mass
success and to the xrp Army watching
this video losing your minds at this
point guys I got love for you I want you
guys to make money I want xrp to moon so
freaking hard that you guys all go
retire on Yachts with you know your kids
in the Caribbean and all that stuff okay
but feel free to let me know about what
I’ve got wrong about xrp in the comments
down below always Keen of course to hear
your opinions and your thoughts on that
thanks for watching

XRP crypto altcoin explained for beginners.
🔥 GET MY FREE NEWSLETTER 👉 https://cryptolark.co/WEALTH_MASTERY

💎 BITGET 👉 $30,000 IN BONUSES ►► https://cryptolark.co/BITGET30K

💸 BYBIT $30,030 BONUS & FEE DISCOUNT 👉 https://cryptolark.co/BYBIT

💡💡💡 ESSENTIAL CRYPTO KNOWLEDGE 💡💡💡
🔥 GET MY FREE NEWSLETTER 👉 https://cryptolark.co/WEALTHMASTERY
💎 BITCOIN INVESTING COURSE 👉 https://cryptolark.co/BTCCOURSE
🔑 ALTCOIN INVESTING COURSE 👉 https://cryptolark.co/ALTCOIN
💹 CRYPTO TRADING COURSE 👉 https://cryptolark.co/TRADING

🧨🧨 FULL PORTFOLIO AND DISCLOSURE OF VENTURE INVESTMENTS 🧨🧨

Lark Davis Crypto Portfolio & Disclosures

⭐️⭐️⭐️ GET IN TOUCH ⭐️⭐️⭐️
🎬 SPONSORSHIP REQUESTS https://cryptolark.co/SPONSOR
🎙 MEDIA REQUESTS https://cryptolark.co/MEDIA

🌟🌟🌟 BEST EXCHANGES TO BUY CRYPTO 🌟🌟🌟
💰 BINANCE: BEST EXCHANGE FOR BUYING CRYPTO IN THE WORLD
👉 10% OFF FEES & $600 BONUS ►► https://cryptolark.co/10
📺 BINANCE TUTORIAL: https://www.youtube.com/watch?v=2tZ6sEyx56s

🐙 USA #1 EXCHANGE TO BUY AND SELL CRYPTO
👉 BUY BITCOIN ON KRAKEN ►► http://cryptolark.co/KRAKENBTC

⚜️⚜️⚜️ TOP CRYPTO SERVICES & PRODUCTS ⚜️⚜️⚜️
🔢 #1 CRYPTO TAX SOFTWARE – IF YOU OWN OR TRADE CRYPTO YOU NEED THIS
👉 COINLEDGER https://cryptolark.co/CRYPTOTAX

🤵 NUMBER ONE BROKER – PROFESSIONAL PERSONAL WEALTH MANAGEMENT
👉 CALEB & BROWN – 30% OFF ►► https://cryptolark.co/CB

🔒 BEST CRYPTO WALLET TO KEEP YOUR ASSETS SAFE
👉 BUY LEDGER WALLET HERE ►► https://cryptolark.co/LEDGER

NOTE: The above are affiliate links and I receive a commission when you use these links to start your accounts. Using any cryptocurrency platform involves risk which may result in a complete loss of funds. Futures trading is a high-risk activity and should only be undertaken by those who understand the risks and are prepared to sustain a complete loss of funds. Thank you for your support.

00:00 Intro
01:43 Ripple Labs
03:10 XRP Ledger
04:56 XRP Token
06:18 RippleNet
09:12 Risks and Opportunities

#bitcoin #crypto #investing
Subscribe for more great crypto videos https://www.youtube.com/channel/UCl2oCaw8hdR_kbqyqd2klIA

Disclaimer
Everything expressed here is my opinion and not official investment advice – please do your own research before risking your own money. Lark Davis (The Crypto Lark and affiliated brand Wealth Mastery) is not providing you individually tailored investment advice. Nor is Lark Davis registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Lark Davis is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.