Bitcoin prices plummeted over the weekend and continued on Tuesday when it dipped below $12,065, a 20 percent drop from the previous week according to OnChainFX. This volatility followed reports that Chinese authorities are cracking down on online cryptocurrency trading platforms and businesses that offer clearing or settlement services. China may soon lose its role as the world's most active bitcoin trading market. When bitcoin falters, the whole cryptocurrency market often follow suit.
Cryptocurrency and the underlying blockchain technology need a decentralized network in order to be successful long term, said Ripple co-founder Jed McCaleb. Use of a centralized financial payment network will result in "a system that is no better than SWIFT or PayPal," McCaleb said. "The real vision is that you have a network, much like the internet, that anyone can participate in," McCaleb said Friday on CNBC's "Fast Money." "There's not one central entity that can decide that it's going to start charging. This is the way this thing can actually grow and reach ubiquity."
This article originally appeared in the Motley Fool. Bitcoin (BTC-USD) was one of the hottest stories in the financial markets in 2017, and its success was just the tip of the iceberg for the broader cryptocurrency market. As well as bitcoin did last year, though, ripple (XRP-USD) did even better, and many investors in the space are taking a closer look at the bitcoin alternative as a way to diversify their cryptocurrency exposure or look for even greater potential gains. As cryptocurrency investing has gotten more popular, it's become increasingly important to know as many facts as you can about the tokens in which you want to invest. With that in mind, here are some facts about ripple that even some successful bitcoin investors don't know.