Ripple becomes second most valuable crypto-coin

A crypto-currency called Ripple has become the second most valuable virtual cash system.
Over the weekend the value of the digital currency hit more than $100bn (£74bn) according to some market monitors.
This valuation is higher than the other popular crypto-cash system - Ethereum.
Each Ripple coin, called an XRP, is now worth about $2.34 - far higher than the half a US cent they were worth a year ago.
Bitcoin still remains the most valuable crypto-currency. The value of the 16.8 million bitcoins in circulation is now worth a nominal $231bn. Each bitcoin has a value of about $13,580.

Bank payment
Ripple has sought to establish itself as a safe alternative to other crypto-currencies by emphasising its links to existing financial institutions.
Ripple was set up to help banks speed up and modernise how they pay each other. So far, about 100 banks have signed up to use its payments system. Bank of America and UBS are among its customers.

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Analysis - Rory Cellan-Jones
"Forget Bitcoin, that's old hat - it's time to get into Ethereum, Litecoin and Ripple."
So goes the message from the crypto-currency enthusiasts when critics mention Bitcoin's failings as a currency and its profligate use of energy in the mining process.
They also like to use a dubious measure - market capitalisation - to show just how significant a force a crypto-currency like Ripple, or rather its crypto-currency XRP, has become.
When investors talk of the "market cap" of a company such as Apple - about $870bn right now - they reach the figure by multiplying the number of shares by their price to calculate the value of the business.
That price can move around pretty sharply but you will have little trouble selling your shares and turning them into hard cash.
Ripple's market cap has been calculated by multiplying the number of XRP coins in existence by the current dollar exchange rate.
But unlike Apple, Ripple has no reliable assets or revenue streams backing up that rate, and changing it into "fiat currency" - that dreary old concept that is supposedly heading for extinction - may prove tricky if everyone heads for the exit at once.
So as with everything connected with crypto-currencies it's best to take their market caps with a sackload of salt.