I have been an investor in Ripple for a long time and managed to make money on this crypto currency many times, so why should I consider a coin a shitcoin?
Shitcoins had made some a millionaire but it does not removed the fact that they are shitcoins. It is not whether you profit or loss to determine if the coin is shitcoin. It is how they are created, setup and distributed and of course their use case. There had been several lies about XRP, and the first one of it is the one stated by Virtual miner .
Great post by you and you have touched upon some great facts. Let me bring in knowledge some more facts that highlight even more deceptiveness of the creators of this coin.
- It is known that around 32570 initial blocks of the ripple blockchain are missing from the ledger. So the nodes are never able to retrieve the data from these starting 32570 nodes which makes it quite fishy as one would never know what transactions happened in these blocks therefore technically making this chain un-auditable forever.
- The coin started to create a P2P lending network which would be based merely on trust however the trust network are known to be un-reliable. Because only a few banks have stood up to tied with ripple which automatically makes it pretty centralized. So until lots and lots of banks join in with their capital as a trust network this coin can't be decentralized.
- Another point to note is that XRP transaction fees is paid by burning XRP. Which means getting it out of supply and naturally increasing the price at a very low scale. For eg. if 0.5% of the total XRP you sent have got burned in fees the remaining 99.5% will now automatically increase in value by some proportion simply due to law of price & supply. This doesn't looks as a big issue now but surely mass adoption and widespread usage will make it look worse as it will be an ever inflating currency.
It is still debatable whether XRP is really a shitcoin but I would be cautious to any project that holds 70% of its supply due to the fact that it may turn ugly at the end.