- The ongoing global health emergency COVID-19 has sparked an escalation of the usage of cryptocurrencies.
- BTC Markets said that after adding Ripple’s XRP to its exchange it has seen massive amounts of growth.
- At the same time, investor Paul Tudor Jones touted Bitcoin as the gold of today.
The global pandemic that is Coronavirus has escalated the use of digital payments and cryptocurrency exponentially. With the lack of cash flow and financial fluidity, digital assets have disrupted the economy.
Clearly, the post-pandemic recovery plan for every economy will be different from what happened after the last financial crisis. This time it might most certainly involve the use of crypto. One of the company which is bullish about crypto is the Australian digital asset exchange BTC Markets.
In a new report, It reiterated the benefits of initial coin offerings since the sector inflated in 2018 and reported a “serious growth spurt.” It was the same year, BTC Markets added XRP to its exchange. Two years on and XRP has driven financial liquidity for “faster, cheaper cross-border payments,” and “sustainable growth.”
“XRP has created business-driven trading volume on our exchange,” said BTC Markets CEO, Caroline Bowler in a statement. “Companies are using the asset to make more effective cross-border payments. This use case is a real differentiator to other digital assets.”
BTC Markets witnesses “Sustainable Growth” after adding XRP
BTC Markets affirmed that cryptocurrencies such as XRP have aided “people to overcome the pain points of cross-border payments like high fees and multi-day settlement times,” proving that XRP is a with “true utility.”
Adding on to the need for cross-border payments, Bowler added that Down Under “most people recognize the problems with cross-border payments, [as] businesses often need to pay suppliers based outside the country.”
Indeed, Australia has witnessed a massive growth when it comes to using XRP. According to a 2018 survey, circa 13.5% of the population owned digital assets. As a result, the government even launched a national blockchain roadmap.
“People are looking for alternatives to the status quo. As a bridge between the two worlds of traditional finance and innovative technology, XRP has a big role to play,” said Bowler.
“Using XRP to cut transaction fees and make same-day payments brings real benefits and fixes the problems of the existing system.”
Expediting Trading with On-Demand Liquidity
Given that XRP’s main use is easing funds movement for traders, it also supports On-Demand Liquidity (ODL).
“The amazing thing about ODL is that businesses using XRP for faster and cheaper cross-border payments are driving volume through our exchange, which is unique in the crypto markets,” concluded Bowler.
“XRP is a bridge between traditional financial institutions and the new world of fintech.”
Will Bitcoin become what Gold was in the 1970s?
It’s not XRP which is proving its value. In fact, investor and billionaire Paul Tudor Jones declared that he will use Bitcoin as a hedge against dollar inflation.
In a market outlook note entitled ‘The Great Monetary Inflation’ published by Bloomberg, he said:
“The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.
“I am not a hard-money nor a crypto nut. The most compelling argument for owning Bitcoin is the coming digitization of currency everywhere, accelerated by Covid-19.”
According to the report, Jones’ announcement caused a higher demand which then pushed BTC above the $10,000 mark. Jones even went as far as to say that Bitcoin has a similarity to gold during the 70s. “Bitcoin reminds me of gold when I first got into the business in 1976,” he said.