There is no doubt that Ripple (XRP) is one of the most adopted crypto in the market, having been adopted by over 150 banks and counting. It is quickly gaining a foothold, as the cypto of choice in cross border payments. Just a few days ago we saw ripple being used to make a multimillion dollar transaction on the Ellen show. The latest aspect to ripple adoption is in the real estate sector, by a company called Propy. Propy is selling a prime piece of real estate in Silicon Valley, and is accepting payments in crypto specifically bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). This is exciting news because it means that ripple is finally gaining a strong use case, outside of the finance industry.
While such moves are great for the future growth of Ripple (XRP), I would be skeptical about spending ripple (XRP) on real estate at the moment. That’s because there is so much potential for ripple to grow that any expenditure at the moment might look stupid in the future. You can easily end up the guy that bought pizza using 10,000 bitcoins. Someone can argue that real estate is not the same as pizza, since it is an asset. However, going by the growth potential that Ripple holds, there really is no much difference between the two scenarios. Here is why.
Assuming you spend $800k on real estate, and it grows by 20% per year, in 5 years this property would be worth something between $1.6 million and $2 million, depending on multiple factors such as the investments done in that locality. However, assuming the same amount is held in Ripple (XRP) and in that same period Ripple (XRP) gets to $100? That money would be worth at least $80 million in 5 years! That’s enough money to buy multiple real estate worth $2 million each. Even if ripple were to rise to a conservative value of $10 in 5 years, it would still be worth so much more. You would still be sitting on a cool $8 million.
One can argue that real estate is safer, when compared to ripple. Well, when you factor in the problems that ripple aims to solve, then you quickly realize that it is actually a safer bet than real estate. Ripple intends to solve the problem of cross-border payments in the global banking systems. This is a problem whose cost is upwards of $20 trillion dollars, and so far no other cryptocurrency has managed to gain as much ground as ripple in this market.
As such, even by conservative estimates, there is no way ripple can take a percentage of this market and fail to hit a value of at least $10. Most people actually believe ripple could hit upwards of $300 a coin in the next 3 years or so. Getting to such a level would make you way wealthier than any real estate bought today at $800k would ever do!