From 1848 to 1855, thousands flocked to California during the famous gold rush – the California Gold Rush – in hopes of striking it rich. Some succeeded, many others did not. Today, a similar story is unfolding in the cryptocurrency world. Many investors are entering the market with hopes of changing their fortunes. Among them, XRP (CRYPTO: XRP) is one of the most discussed cryptocurrencies. So, can XRP become a 'millionaire-maker'?

What is Needed to Reach $1 Million?

Before answering this question, consider the path to turning a small investment into $1 million. Suppose an investor starts with $10,000. To reach the $1 million mark, this investment needs to increase 100-fold.

Currently, the market capitalization of XRP is around $173 billion. To increase 100 times, XRP's market cap would need to reach $17.3 trillion – an enormous figure that no cryptocurrency has achieved, not even Bitcoin, the largest crypto currently with a capitalization of about $2.3 trillion.

Nevertheless, a 100-fold increase is not unprecedented in the world of cryptocurrency. Bitcoin has increased more than 485 times in the past 10 years, turning a $10,000 investment into nearly $4.85 million. XRP has also recorded strong surges, though not as impressive as Bitcoin.

What Could Make XRP a 'Millionaire-Maker'?

The clearest path for XRP to explode is to become an alternative asset favored by investors, just as Bitcoin has done.

The three founders David Schwartz, Jed McCaleb, and Arthur Britto launched the XRP project in 2011 with the goal of creating a 'better Bitcoin' specifically for payments. They addressed several limitations that Bitcoin faced:

  • Transaction speed: XRP takes only 3-5 seconds to complete a payment, while Bitcoin takes about 500 seconds.

  • Cost: The transaction fee for XRP is only about $0.0002, compared to $0.50 for Bitcoin.

  • Sustainability: XRP consumes extremely low energy, making it much more environmentally friendly than Bitcoin.

A major turning point could occur if the XRP ETF is approved. The U.S. Securities and Exchange Commission (SEC) is nearing the approval of a spot ETF for XRP – something that previously helped Bitcoin grow significantly when the Bitcoin ETF was approved.

Additionally, President Donald Trump recently signed an executive order requiring the Department of Labor to reconsider regulations restricting investments in alternative assets, including cryptocurrencies, in 401(k) retirement funds. If implemented, this regulation could open up a new wave of demand for XRP and the crypto market in general.

Probability of Success – High or Low?

XRP has potential, but that does not equate to a high likelihood of turning $10,000 into $1 million in the next 10-20 years.

  • Technical advantages are not enough: Being superior to Bitcoin in speed, cost, or energy does not guarantee that XRP will experience similar growth. Many other coins also have technical advantages but still have much lower market caps and acceptance rates.

  • Positive regulations may not necessarily lead to a price explosion: The agreement between Ripple (the company behind XRP) and the SEC to settle the lawsuit regarding whether XRP is a security or not did not create the significant price momentum as expected.

  • Already a 'big player' in the market: XRP currently ranks third by market capitalization, only behind Bitcoin and Ethereum. Large-cap coins often find it difficult to achieve explosive growth like smaller, lesser-known coins.

Conclusion

XRP could yield significant profits for high-risk investors, especially if the ETF is approved and new regulations expand investment demand. However, the probability of XRP turning $10,000 into $1 million is quite low in the current context.

For investors seeking a 'modern treasure' like during the California Gold Rush, XRP could be a potential option, but it is not a guaranteed ticket to becoming a millionaire.