Ripple and its token XRP are often talked about when people discuss the future of money. In a video, Vandell Aljarrah, co-founder of Black Swan Capitalists, explained why he thinks XRP could play a huge role in changing how the global financial system works.
Vandell pointed out something strange. We can send messages, photos, and videos around the world in seconds. But moving money from one country to another, especially between banks, can still take days. That’s because the system runs on old technology that hasn’t been updated in about 50 years.
To make it work, banks keep around $27 trillion locked up in special accounts around the world. This money earns nothing and can’t be used for loans or investments. Vandell says this is not just slow but also a serious flaw in the system.
Ripple is trying to fix this. The company builds technology for banks and payment providers that lets money move in seconds instead of days. Ripple focuses on helping financial institutions, not everyday investors. It has even applied for a US banking license, which could give it a big edge in the market.
How Ripple and XRP Work Together
Ripple’s products, like Ripple Payments and Liquidity Hub, let banks and payment providers send money instantly. The heart of this system is XRP, the digital asset that runs on the XRP Ledger.
The XRP Ledger is a blockchain created in 2012 to handle fast, secure, and cheap payments. Bitcoin can take 10 minutes or more to confirm a transaction, but XRP settles in three to five seconds with almost no fees.
XRP also works as a bridge between different currencies. For example, a bank could send US dollars, convert them into XRP, and then instantly turn them into pesos. This removes the need for those expensive dormant accounts.
Vandell compares Ripple and XRP to Apple and the internet. Apple builds devices and software to make the internet easy to use, but the internet works without Apple. Similarly, Ripple builds tools for the XRP Ledger, but the ledger can work without Ripple.
Ripple has already partnered with over 300 financial institutions and works with central banks and regulators. Vandell believes this shows XRP is being built for long-term use.
Why Vandell Thinks XRP’s Price Could Keep Rising
Many cryptocurrencies are based on speculation, but Vandell says XRP is different because it solves a real problem. He believes two big forces could push its price higher in the long run:
First, fiat currencies like the US dollar lose value over time because central banks keep printing more money. When money loses value, the price of scarce assets, like XRP, tends to go up.
Read Also: XRP Price Prediction: Ripple’s Legal Win Still Boosting Sentiment
Second, XRP has a fixed supply of 100 billion tokens, with less than half in circulation. As more banks, institutions, and investors use and hold XRP, supply will get tighter and demand will push the price higher.
Vandell believes the old financial system is slowly breaking down and new infrastructure is being built. He expects only a few cryptocurrencies will survive this change, and XRP will be one of them. In his view, owning XRP now is about being ready for the new financial system that’s on the way.
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