Ripple XRP Gains Momentum Above the $0.2700 Level but More Work Needs to be Done. In other news, the Ripple XRP token is now recovering slowly against the USD.
At the time of writing, it has successfully moved above the $0.282784 level with a trading volume of $1,140,039,078 and a market capitalization of $12,723,823,029. If the token moves above the $0.2850 level, it will make higher highs near-term.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
- Ripple’s CEO Brad Garlinghouse, Says That the USD Will Lose Value Because of The New Fed Policies
- Ripple XRP Gains Momentum Above the $0.2700 Level but More Work Needs to be Done
From the Coronavirus pandemic to the economic crisis, 2020 has been one of the worst years in recent history. The ripple effect of the pandemic alone has affected even the most developed parts of the world. People are dying every day, losing their jobs, and companies are folding up because of a lack of funds. Most cryptocurrency development projects have been forced to slow down or stop completely because of the effects of the virus.
The United States economy is burning through its reserves as they try to curb the virus and these reserves aren’t being replenished. The CEO of Ripple, Brad Garlinghouse has said that the measures the Fed is taking will be beneficial to cryptocurrencies long-term because the value of the USD will drop more rapidly.
A Declining USD is a Good Thing for XRP and Other Cryptocurrencies
In Brad Garlinghouse’s words;
“The pandemic is throwing so many playbooks out the window”, he posited in an Aug. 28 tweet. “Yesterday’s action flies in the face of decades of precedent”, he said, pointing toward an Aug. 27 article from the Wall Street Journal on the U.S. Federal Reserve chose to keep interest rates low at the possible expense of higher inflation. Signs point to further dollar debasement in the near term (leading to the further diversification of assets which will certainly be good for crypto).”
To prevent economic depression the Feds have decided to try quantitative easing and some other measures that promise to make things better without crashing the economy. The two financial instruments they want to manipulate are inflation and interest rates. By reducing interest rates on loans and allowing up to 2% inflation, the Feds will be able to find some form of stability at the expense of the USD.
As reported in our XRP news yesterday, this process is going to lead to a decline in the value of the USD. Garlinghouse believes that this will create the perfect opportunity for the long-term adoption of Bitcoin BTC and other tokens. Garlinghouse compared Bitcoin to gold. People use gold as a long-term store of value
Garlinghouse isn’t the only one who thinks cryptocurrencies serve as a strong store of value. Many other members of the community have faith in Bitcoin BTC and other tokens. Tyler, one-half of Gemini’s Winklevoss twins, said he believes that Bitcoin BTC can sell as high as $500,000 per token one day.