As we forecasted earlier in May, we have started to see a reversal in Bitcoin’s price from its prolonged correction. However, Bitcoin now finds itself oscillating between $29,000 and $30,000. With fears of slowdowns in the economy, high gasoline prices (which have a systemic effect) and inflation, we are witnessing a de-risking event across all markets. We do believe Bitcoin will break out of the short term range it finds itself in.
Irrespective of the direction of the macro economy, institutional money is beginning to enter the space in a more pronounced way, which will gradually add more volume into the overall crypto market. Many of the digital assets in our long term portfolio provide the solutions to multi-trillion dollar problems, and will play a pivotal role in updating the financial system. We expect to see increased adoption of this technology in addition to institutional money following the space receiving regulatory clarity in the United States.
For example, the CEO of Mastercard, Micheal Miebach, stated that he believes it is possible that SWIFT may no longer exist in as little as five years. SWIFT is a service that oversees and facilitates cross border transactions and is widely used by financial institutions. With disruptive companies like Ripple entering the payments space, it is probable that XRP becomes a new mechanism for sending value in a more efficient way, as its speed and cost far outshines that of SWIFT.
While there other blockchain networks that reportedly have superior performance, few have the proven track record that XRP has established. As of yesterday, the blockchain network XRP has functioned without any major issues for over 10 years. While a network like Solana does have a higher throughput capabilities, SOL frequently experiences outages, and lacks the same level of credibility and reliability of a network like XRP.
Timing is one of the most pivotal aspects when it comes to launching a successful business. If a company establishes itself in a space too early, then it will not have the traction it needs to survive. Conversely, if it is too late, it will be beaten out by its competition. We feel strongly that at this present moment in time networks such as XRP are poised to establish network effects similar to the big tech conglomerates of today, and become indispensable resources for the financial world.