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I’ve remained a steadfast proponent of Ripple (CCC:XRP-USD) as it continues its battle against the SEC.
Source: Shutterstock
The cryptocurrency has played the role of David to the SEC’s Goliath and looks likely to emerge victorious.
That alone should give it plenty of fuel to move higher, and there is plenty to like beyond that, making it a long-term investment worth considering rather than a short-term play alone.
While there’s a strong overall narrative surrounding Ripple and its XRP coin, let’s start with what the people want: Returns.
Whether we’re talking about stocks or cryptocurrency, investors want to know the same thing: How much will it be worth?
In Ripple’s case, the news is positive. According to CryptoNewsZ pundits might reasonably expect this. The blog reported that XRP could return to its $4 high as soon as 2023.
Meanwhile, WalletInvestor anticipates prices of $1.51 a year from now and roughly $3.65 five years from now.
A Closer Look at Ripple
I said that there’s a strong narrative surrounding Ripple’s growth case so you might be shaking your head. After all, I’ve also just indicated that it might reasonably take fivr years to see a 4X return on XRP at current prices.
I’d first note that these predictions aren’t exactly analogous to those made by Wall Street analysts for well-established stocks.
There’s simply no track record for crypto and few if any established pricing models. So who’s to say that XRP couldn’t rise much more?
But even if it doesn’t, let’s assume those predictions are correct. If so, those 300% returns are quite attractive.
Surely they’ll turn off the real risk seekers that populate crypto investment right now, but Ripple is an established company with real utility.
Shiba Inu (CCC:SHIB-USD) type returns have a nearly zero probability.
One of the reasons Ripple is being hindered from rising higher is its ongoing legal battle with the SEC.
The SEC’s Case Is Weakening
The general consensus is that Ripple will prevail in its ongoing battle against the SEC. I wrote about recent updates which bode well for Ripple a few weeks ago. My belief falls in line with the general consensus that Ripple will prevail.
My colleague Muslim Farooque feels largely the same. He pointed out that the SEC has been using stalling tactics with regard to opening documents that may hurt its case. These and other recent events bode well for the defendant.
What to Do With XRP?
The answer to this question largely depends on what you’re looking for from cryptocurrency investing.
Are you looking for the next crypto that could explode and turn a relatively small investment of $1,000 into $1 million? If so, XRP isn’t going to satisfy your risk profile.
The opposite is true for crypto investors looking for an asset very likely to provide attractive returns now and into the near future.
XRP should almost certainly prevail in its case against the SEC. That provides the short-term catalyst to propel it upward in the coming months.
Over the longer term, its global payments platform looks like it has a very good chance of eroding SWIFT’s dominance over that particular niche within finance.
That was part of the promise around decentralized finance and cryptocurrency which is why Ripple and XRP make sense.
InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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