Jump to content

Leaderboard


Popular Content

Showing content with the highest reputation since 12/18/2018 in Posts

  1. 49 points
    Hodor

    We Will Prevail

    Blog URL: https://xrpcommunity.blog/we-will-prevail/ XRP will prevail: I describe why, and then cover all the latest news impacting the best digital asset ever made. π†πžπ§πžπ«πšπ₯ 𝐂𝐫𝐲𝐩𝐭𝐨 𝐍𝐞𝐰𝐬: The Democrats and Republicans join together to make sure the United States continues to play a part in blockchain tech and crypto. 𝐑𝐒𝐩𝐩π₯𝐞 𝐍𝐞𝐰𝐬: Brad Garlinghouse sits down with Monica Long for the final AMA of 2018; Ripple releases a video compendium summarizing points in the AMA; Ripple submits its response to the October request by the Federal Reserve for proposals of a real-time gross settlement system (RTGS); and a video of Cory Johnson from Slush Singapore is released by an XRP fan. 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: The XRP Toolkit adds support for user-created escrows; and Coinfield adds more XRP pairings, extending the reach of XRP. I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! πŸŽ„πŸŽ…πŸŽ„ My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  2. 39 points
    Guys, Back in June, several people within the community asked whether there were any updates on the lawsuits filed against Ripple Labs, Inc. Below is your update for December, 2018. Please keep in mind that the U.S. justice system moves pretty slow. Essentially, there is one (1) open or active case Ripple Labs, Inc. is involved in (as of December 23, 2018). TL;DR - Nothing really to report. Stay tuned for January, 2019. Something to keep in mind: IF the United States Congress decides to draft and pass a new law (see "Token Taxonomy Act" article below), and that new law redefines what is a security is and/or excludes cryptocurrencies and digital assets from U.S. securities laws, more likely than not, the legal issue as to whether XRP is a security would become "moot" in these active cases listed below. IF that were to happen, one could argue that all of these remaining cases filed against Ripple Labs, Inc. would be dismissed. Lastly, if a U.S. state securities law (California) and U.S. federal securities law are in conflict, again, assuming that a new U.S. federal law passes and redefines what a security is AND the current California securities law does not change anytime soon, generally speaking, the new federal law would take legal precedence over the state law (see "Supremacy Clause" link below). Hence, remanding or moving the case and security legal issue back down to the California state court would do the plaintiffs no good either. They would lose. The open or active cases are in bold: 1.) 2014 - Ripple vs. LaCore Enterprises (closed) 2.) 2015 - Ripple vs. Kefi Labs (closed) 3.) 2015 - Arthur Britto vs. Jed McCaleb (closed)** 4.) 2016 - Bitstamp vs. Ripple, Jed McCaleb, Stellar (closed) 5.) 2016 - Ripple vs. Pixel Labs (closed) 6.) 2017 - R3 vs. Ripple (Delaware) (closed) 7.) 2017 - Ripple and XRP II vs. R3 (California) (closed) 8.) 2017 - R3 vs. Ripple (New York) (closed) 9.) 2017 - Tony Petrucci vs. Ripple (closed) 10.) 2018 - Ryan Coffey vs. Ripple, XRP II and Bradley Garlinghouse (California) (closed) 11.) 2018 - Ryan Coffey vs. Ripple, XRP II and Bradley Garlinghouse (U.S. Federal Court) (closed) 12.) 2018 - Vladi Zakinov vs. Ripple, XRP II and Bradley Garlinghouse (California) (open/active) 13.) 2018 - David Oconer vs. Ripple, XRP II and Bradley Garlinghouse (California) (open/active) 14.) 2018 - Avner Greenwald vs. Ripple, XRP II, Bradley Garlinghouse, Christian Larsen, Ben Lawsky (California) (open/active) 15.) 2018 - Avner Greenwald vs. Ripple, XRP II, Bradley Garlinghouse, Christian Larsen, Ben Lawsky (U.S. Federal Court) (closed) 16.) 2018 - Avner Greenwald vs. Ripple, XRP II, Bradley Garlinghouse, Christian Larsen, Ben Lawsky (U.S. Appeals Federal Court) (open/active) Notes on active cases: #12 and #13 (above) were combined into one (1) court case. This was a procedural move (and small win) by Ripple Labs, Inc. This combined court case is currently in federal court. The plaintiff(s), those individuals suing Ripple Labs, Inc. for U.S. security related issues, are trying to remand the case or move the case back to California state court where it would be more favorable for their legal arguments. *Dates to keep in mind are December 28, 2018 and January 14, 2019. Eventually the court or the judge will be deciding whether the case should stay in the U.S. Federal Court or if it should go back to the California state court. Again, nothing really to report. Enjoy the holidays and your time with your friends and families. June 2018 Update: https://www.xrpchat.com/topic/24386-ripple-lawsuit-tracker/ August 2018 Update: https://www.xrpchat.com/topic/26151-ripple-lawsuit-tracker-august-2018-update/ October 2018 Update: https://www.xrpchat.com/topic/27832-ripple-lawsuit-tracker-october-2018-update/ https://www.cnbc.com/2018/12/20/lawmakers-look-to-change-secs-72-year-old-securities-definition-to-exclude-cryptocurrencies.html https://definitions.uslegal.com/s/supremacy-clause/ https://definitions.uslegal.com/m/mootness-doctrine/ @Pablo @Snoopy @zerpdigger @vlad_got_it @jcdenton @Mrsrippley @Sebastian @xrpisking
  3. 39 points
    Hodor

    Own Your XRP

    Blog URL: https://xrpcommunity.blog/own-your-xrp/ In my 1st blog in 2019, I discuss the importance of coin ownership & cover the latest news! π†πžπ§πžπ«πšπ₯ 𝐂𝐫𝐲𝐩𝐭𝐨 𝐍𝐞𝐰𝐬: Own your coins to make sure the demand is reflected in price! 𝐑𝐒𝐩𝐩π₯𝐞 𝐍𝐞𝐰𝐬: Cory Johnson makes an appearance at Cornell's latest Entrepreneurship Summit in NYC. 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: The XRP Community API expands its features and capabilities; Coinmetro adds support for XRP; and Bitrue adds 5 base pairs against XRP. I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  4. 37 points
    Hodor

    2018: The Forming of Team XRP

    Blog URL: https://xrpcommunity.blog/2018-the-forming-of-team-xrp/ In this blog, I cover 2018 & how it led to the formation of a large-scale XRP Community - and I cover the latest XRP news too! π†πžπ§πžπ«πšπ₯ 𝐂𝐫𝐲𝐩𝐭𝐨 𝐍𝐞𝐰𝐬: Fidelity forms a new company specifically to address custody for cryptocurrencies. 𝐑𝐒𝐩𝐩π₯𝐞 𝐍𝐞𝐰𝐬: Ripple publishes its end-of-year retrospective along with some videos released on Twitter; I provide a current status of xRapid from the standpoint of those of us tracking its progress in 2018. 𝐂𝐨𝐒π₯ 𝐍𝐞𝐰𝐬: Stefan Thomas announces that he will match up to $25,000 in crypto donations to the Internet Archive. 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: I cover the 2018 formation of the largest crypto community & describe how WietseWind's long list of 2018 projects supercharged the community; I cover XRP Community's use of the XRP Tip Bot for small charitable donations; XRP surpasses Bitcoin on Uphold's holdings list; Bitrue adds more XRP pairings; Crypto Circle eXchange announces that they'll support XRP at roll-out; and I provide end-of-year XRP Ledger statistics and compare them to the beginning I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  5. 35 points
    http://live.theasianbanker.com/video/the-banking-world-kind-of-lost-pace-with-the-rest-of-commerce-and-society
  6. 34 points
    Chewiecoin

    What an Incredible Year

    What an Incredible year 2018 has been for Ripple and XRP. Its foolish to look at the price and complain that we have had a bad year. Look at the amazing partnerships that Ripple have made and look at the incredible advancements in RippleNet with the launch of xRapid, xVia, Coil etc. 2018 will be the year that we will look back on as the year the rails were laid and the launching pad was built. I believe 2019 will be an amazing year. Beyond that the sky is the limit. Happy New Year everyone. Chewie
  7. 33 points
    Hodor

    A Tale of Two Economies

    Blog URL: https://xrpcommunity.blog/a-tale-of-two-economies/ In today's blog I describe how the crypto market exists in parallel with traditional markets, and then cover all the news affecting XRP! π†πžπ§πžπ«πšπ₯ 𝐂𝐫𝐲𝐩𝐭𝐨 𝐍𝐞𝐰𝐬: The UK receives tax guidance for crypto-assets. 𝐑𝐒𝐩𝐩π₯𝐞 𝐍𝐞𝐰𝐬: Cebuana Lhuillier signs on as a RippleNet member; The National Bank of Kuwait releases a new remittance app called NBK Direct Remit; Hot Chips releases a tutorial about the XRP Ledger; A computer science major from Stony Brook University creates an app that rewards people in XRP for exercising; and Ripple Drop Episode 8 is released; 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: CZ announces XRP's elevated status as a base currency on Binance; A decentralized exchange, CryptoBridge, adds XRP trading support; Neteller, a UK-based money transmitter and crypto dealer, adds XRP support; BTCEXA, an Australian crypto exchange, adds XRP support; EO.Finance, an Estonian-based crypto exchange that allows deposit via credit card, adds XRP support; and Voyager, an exchange set to open in January of 2019, has stated it will support XRP out-of-the-gate. I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  8. 29 points
    Hodor

    XRP & The New Economy

    Blog URL: https://xrpcommunity.blog/xrp-the-new-economy/ XRP's decentralized ecosystem is about to the change the world's economy! Discover why, and learn about the latest crypto news in my latest blog: 𝐑𝐒𝐩𝐩π₯𝐞 𝐍𝐞𝐰𝐬: The last AMA of 2018 with Brad Garlinghouse is scheduled for Tuesday, December 18th; Akbank, the highest-profile bank in Turkey, signs with Ripple; R3's selection of CordApps fascinates XRP fans; Israel's largest financial services company signs with Ripple; 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: @xRpTo_O (Twitter handle) updates his Siri code to support a random donation via the XRP Tip Bot; The second-largest exchange in Germany rolls out the Bison mobile application with XRP support; and Travala, a crypto travel site, adds support for XRP; I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  9. 28 points
    kryptoroi

    Uphold comments on XRP!

    Just received an email from uphold and the stats they have on the overall market and XRP specifically point to a bright future! The past month has seen one of the worst sell-offs in digital currencies for three years, with a corresponding collapse in prices. At the time of writing (10/12/2018), Ethereum had crashed to 6% of its peak value, Bitcoin languished at 18% and even XRP stood much diminished at 32%. Yet the reaction of Uphold members to the incipient bear market over the past four weeks may be surprising. Uphold’s Chief Data Officer, Rafael Veloso, picks out some of the trading highlights. Despite the grim market, β€˜Buy’ orders outweighed β€˜Sells’ by 26% in US Dollar terms, with many Uphold customers using the fall in prices to increase their positions substantially. In terms of net inflows, the big story was XRP. Even with a market cap only 20% that of BTC, XRP emerged as the second most heavily bought asset on Uphold over the four-week period, coming within 98% of the US Dollar value of all Bitcoin purchased. Steady growth in XRP holdings continued and most holders of XRP held their nerve. XRP buys ran at almost six times the value of XRP sales in the month. The past month underlines the continuing rise of interest in XRP,’ explained Veloso. β€˜When first listed on Uphold earlier this year, XRP accounted for less than 10% of platform purchases each month. Over the past month, that figure has risen to 43%. Many buyers believe - and Tweet - that XRP has a well-developed use case and is enjoying higher levels of institutional adoption than other digital currencies. Ripple’s xRapid payment technology continues to be picked up by big banks, with XRP providing a liquidity bridge.’
  10. 27 points
    This seems to be an update to a similar announcement back in August (but at that time many XRP chat members thought the announcement might be "fake news"):
  11. 27 points
    If you have been living in a cave during Q4/2018 or just want a nice summary what have happened in the XRP/Ripple world then I recommended reading the first XRP community blog post from Leonidas. Daily recap what have happened Distribution of monthly/daily XRP/Ripple news New XRP/FIAT pairings in exchanges (remember this is a must before xRapid can be utilized) Etc. https://xrpcommunity.blog/q4-2018-xrp-adoption-report-actions-speak-louder-than-words/
  12. 27 points
    xippix

    Visa buys earthport

    https://uk.mobile.reuters.com/article/amp/idUKKCN1OQ0EM?__twitter_impression=true Visa buys eartport ( ripple partner ) Also they launch a new API! https://ripple.com/insights/earthport-launches-distributed-ledger-hub/
  13. 26 points
    Congress may finally bring the cryptocurrency industry what it has been loudly calling for: regulatory clarity. https://www.cnbc.com/2018/12/20/lawmakers-look-to-change-secs-72-year-old-securities-definition-to-exclude-cryptocurrencies.html
  14. 25 points
    I've always been interested in how the popularity of cryptocurrencies affects their price, and so, for the past 6 months, I've been working on (and now have released to the public) "KoinFollow", a way to follow your coins through the media. Accurately tracking each coins' mentions in the news and on social media, over time. Right now KoinFollow processes around ~40,000 news and social media posts every day from Reddit, Twitter, and over one hundred popular news websites. These posts are then used to create the current features, here are the current features: https://koinfollow.com/news is a live cryptocurrency news feed. You can customize & curate your feed to any cryptocurrency/cryptocurrencies you would like and start receiving the latest news about only that coin/those coins. I've developed a very good algorithm that accurately finds which coins have been mentioned in each post. One that does not get confused between "Bitcoin" and "Bitcoin Cash". The feed automatically updates when news comes out. I use it while day trading to see how people are talking about the coin I am trading and find it very helpful. Currently, we do not include Tweets in the feed, although, we will add an option later that allows you to turn on/off seeing Tweets in your feedβ€”for the brave-ones. https://koinfollow.com/newsletter is a smart crypto newsletter that allows you to keep up-to-date on the latest news about your cryptocurrency portfolio (or whichever coins you select that you want to receive news about). You can curate it to the coins you want, and every day you will receive an email with news curated to those coins from the previous day. Unsubscribe at any time, no need to create an account. It is nice if you just want an overall summary of the last day's cryptocurrency news related to a certain coin/coins, and don't want to sit and watch the live news feed all day (or, do both like I do to make sure everything is covered). https://koinfollow.com/ is where you can view very accurate "social stats" about any coin you would like. Right now it lists "The Top 100 Coins by Popularity" in the past 24-hours, but, you can search and compare any of the 1,945 coins we currently have listed using the search barβ€”Later we would like (if there is interest) to add a page listing all 1,945 (and growing) coins together ranked by popularity. You can actually use this page to determine if a coin is being "pumped n' dumped" by seeing an abnormal amount of Twitter tweets, and a spike in popularity out of nowhere (you can also click on the Twitter section under the coin's Coin Profile and see some of the recent Tweet to determine if they are spamming, etc). Clicking on a coin name lets you view it's "Coin Profile - Overview" which shows specific 24-hour mention stats about that coin and lets you see that coin's popularity graphed over time to see how it has grown (right now there are just a few days shown, but that is just because we just started tracking each coins' mentions over time on December 25th, 2018), here is Bitcoin's Coin Profile. In the Coin Profile of a specific coin you can also see that coin's sentiment graphed over time, news mentions graphed over time, Twitter mentions graphed over time, and Reddit mentions graphed over time. This is the main feature and the main "idea" of KoinFollow, which is why it is on the home page. We plan on spicing up these sections and the website itself with more useful features and an even nicer user-experience, that isβ€”If interest grows. As the server costs I am paying alone are very expensive for myself. I just wanted to get the word out to see if there is interest. If you have any feedback or if you find KoinFollow useful/interesting, tell me about it, and I'd love to read it. You can also help support KoinFollow by spreading the word and sharing. Thank you. If interest grows, here are some features we will implement first: A feature for eliminating "pumping & dumping" and price manipulations through the media. As well as eliminating Twitter cryptocurrency scams. Such as this one, which shows the coin "DACC (DACC)" spamming highly-likely malicious Tweets with different bot Twitter accounts. As you can see DACC was never mentioned on Reddit, or in the news. Only on Twitter, as that is the best place to reach thousands of people without being ousted, and be able to post every minute without people catching on that you are spamming (unless, of course, they use KoinFollow, ). On Dec. 26th, DACC was Tweeted 1,257 times, all Tweets saying the same thing, "DACC Cofounder Generous Christmas #Airdrop 10,000,000 DACC Giveaway, No KYC request DACC Already listed on #Kucoin [...]," only with slight changes (user profile names, and Telegram link variations which help them hide under the radar). Pages that would be implemented: All 1,945+ coins ranked by popularity (instead of just the "Top 100"). A page for dedicated tracking of the overall cryptocurrency market sentiment, over time, instead of just the 7-day "Overall Cryptocurrency Market Sentiment" you see on the Coin Popularity page (KoinFollow's home page). A "Cryptocurrency's Most Wanted" page ousting maliciousness in the cryptocurrency market (as I talked about above). And, tracking of cryptocurrency exchanges and prominent cryptocurrency people/teams, as well as user accounts which will allow you to simply "Follow" the coins/people/exchanges you are interested in. Help pay for KoinFollow's server costs (~$70 per month, currently being paid by myself alone) and support KoinFollow's development by donating: KoinFollow's XRP Donations Address: rMmonkxUYYRf6qCjBKsBnoU1f4wavwsUo5
  15. 23 points
    I looked here for my figures : https://www.coingecko.com/en/price_charts/ripple/usd All time yearly lows of XRP 2014: $0.003 2015: $0.004 2016: $0.005 2017: $0.006 2018: $0.26 This shows to me that there is a growing number of XRP holders who won't sell below a certain amount. BTC has shown a similar growth in ATL year-by-year numbers :
  16. 23 points
  17. 22 points
    After the discussion within the thread "The impossibility of liquidity in xrp" went on I was asked the following: In the last several hours I created a document that hopefully gives a clearer overview of the cross-border settlement process with the use of XRP and the corresponding balance sheet operations as I understood it: https://de.scribd.com/document/396839492/Xrp-Balance-Sheet-Operations-v1-0 Please do not hesitate to correct me if I have made false assumptions or if you discover any other critical points as I do neither work at Ripple or at any bank that is implementing or using xRapid. The document merely reflects my current gaps in knowledge. 9th of January, 2019: updated to v1.4
  18. 22 points
    Not just any fridge magnet but one connected to CMC to update the key stats every 10 seconds. My names scooby & I'm an addict. Pretty cool, I'll plead ignorance on the specs but it's something my bro made me using some fancy chip which connects to interweb itself. Cheeky bum that brothers are the middle button plays "this time next year we'll be millionaires" line from only fools & horses. lol
  19. 22 points
    I was going down the rabbit hole again and stumbled across this link at Accenture: https://www.accenture.com/t20181030T101039Z__w__/us-en/_acnmedia/PDF-23/Accenture-Banking-Real-time-Cross-Border-Payments.pdf#zoom=50 On page 6 they discuss a software provider called D&H which "provide standard Ripple integration to their payment engines platform", this is a new one we haven't heard of I believe. You also can't find anything on their website about Ripple, NDA? Page 7 is a ******* bamboozle of exciting **** that only partners could really have confidence saying: "Ripple has proven technology. It is already in operation with banks like Santander and Fidor and is being implemented by others. Governments and central banks are interested and supportive of the technology, and among commercial banks there is a strong desire and appetite to road test the technology with real live transactions. Numerous banks have run internal proof of concepts including the real transfer of money. Thirty have completed pilots and are actively progressing plans to extend into live operation, including a group of several banks who are forming an alliance to build a cross-border payments network together. These banks are drawn from the top 50 banks globally, broadly configured to enable wide geographic reach, with one bank per geography, each with access to local domestic clearing systems. "The Ripple enterprise solution is mature enough to launch and scale a cross-border payments network, and a consortium of banks is forming to use this Ripple technology to keep ahead of the competition." <- In my opinion this consortium are the 12 that met on the eve of Swell to discuss governance. This is happening now, Ripple has partnered with hubs all over the world and the spokes will be dragged along due to the beauty of network effects. PSP/Banking Software providers have been partnered with Ripple for years and are fully integrated into the network. When the network has enough "value" a simple choice will be made by send payments via correspondent banking or send them via Ripplenet. These plans have been in place for 5 years, testing is over I believe we are right around the corner from a massive "switch" being flipped. If Ripple has captured the hub in 40 countries as they state they have access to the majority of all banks in each country and those banks have the option to tap ripplenet. Edit: D&H was known, hidden, but known. The more interesting part is the statements made by Accenture.
  20. 21 points
    karlos

    Own Your XRP

    @Hodor has been posting quality content for years. Theres no rule against posting a link to an in-depth blog like his, actually its very welcome. I think @Hodor even starting writing here first, before contributing to the xrpcommunity.blog?
  21. 21 points
    Many of us here have degrees in economics or finance. Finance for me. We can either follow what the OP is saying or we have studied enough on our own to grasp the concept. In the financial crisis of 2008, there was a lender of last resort. The central bank propped up AIG and Bear Sterns, and let Lehman Brothers fall. AIG and bear sterns were saved because the economy is incredibly interconnected, the argument is that if the central bank had not stepped in, there could have been a domino effect on a large scale. The central bank stepped in, requiring it to print more USD, or sell bonds to raise funds, or a combination of the two. What the OP is saying is that the XRP supply is fixed and there is not a central authority who could perform the same role the central bank performed in the financial crisis. APPLES and ORANGES XRP is not a currency. It is a tool that companies and individuals can use to transfer value. The idea is to not hold XRP on the balance sheet. The idea is to have very limited exposure to XRP because it is volatile. If there is not liquidity trading XRP (XRP ecosystem financial crisis), fine, individuals and companies will not have access to the tool they once did that helped them operate efficiently, they will have to go back to older systems. It would be similar to a computer system for air traffic control getting shutdown so air travel would halt and people would have to travel by train or by bus until the air traffic computer system got working again, a inconvenience, but XRP is not a currency, there are central banks for USD, USD is not going away, USD denominated assets and liabilities are not changing to XRP. liquidity in XRP is the bigger issue, if the efficiencies of using XRP are enough for businesses and individuals to use XRP and still allow market makers to make some money with a decent spread, that is all that matters. The other thought on that: market makers are computers these days, they make their money in volume, not markup, so volume/liquidity is self reinforcing.
  22. 20 points
    Signing off for a bit and just wanted to extend my sincere wishes to everyone for a peaceful Holiday, as well as wish you all an amazing 2019. I have a feeling 2019 might be a very interesting year Message from Chuck:
  23. 19 points
    It is true that by providing credit to borrowers, banks bring money into existence within limits. There is a meager reserve requirement, and there are underwriting considerations and risk management calculations that try to anticipate the risk or lending - this must be done, because the black swan in the financial model is the level of honesty and accuracy provided by the borrower and audited by the underwriter. Money is created as credit in the debt-based economy. We can maintain liquidity - keep unencumbered money in the system - by lending indefinitely. This is the inflationary force within money - it's not based on productivity or the value of assets, but the amount of credit that can be issued without creating systemic risk. This is how money is created, and it is certainly elastic. How is money destroyed? 1) The debt that was used to justify it is paid off. 2) The debt that was used to justify it is either forgiven or cleared through bankruptcy. 3) The money is used to pay back interest to the reserve banks. Under a rigid system, as stated above, there is a potential for a deflationary scenario. This is a very serious problem in finite currency pools that are locked tightly to hard assets. The reason is that bank charge interest as part of doing business, and investors expect interest as well to justify the level of risk involved in depositing their silver/gold in the bank. The problem with interest in a fixed system is that it opens the doors to usury - while a bank might create money - redeemable tender - that represent claims for hard assets in their vault, there is no way to make the money to pay the interest! As a result, banks charging interest will eventually force a certain percentage of their borrowers to default, resulting in collateral for loans being confiscated and the banks not only were getting interest from the person who defaults, but in the end they get the underlying assets too! Which is why you have so many banks interested in loaning you cash advances on your digital assets. They know a certain percentage will eventually default, and they will get the collateral digital assets at a very cheap price - but the money they created and gave you as an advance on your assets did NOT come from the value of your asset, but on the basis of your creditworthiness. And it is why I warned many many months ago against doing this. Once banks start calling in their loans and people start defaulting, investors start panicking - there are runs on the banks, people rush to gather their assets. In a fixed supply system, this creates severe deflationary pressure - under the gold standard this led to severe depression because although there were goods and they were cheap, there was no money to buy them because of hoarding. Essentially all the banks had their margins called in at once. Everything ground to a halt. In terms of an elastic money supply, we saw in the savings and loan crisis and the mortgage debt crisis that there are other tools that can be used to balance the inflationary and deflationary forces. Quantitative easing provides an inflationary force - extending a special credit window at 0% interest to encourage liquidity and allow banks to continue issuing credit. Raising interest rates provides a deflationary force - it causes the money supply to contract. Even in a debt-based system, the money to pay interest is never created as part of the loan - you get the principal, but when you pay it back you have to come up with the interest some other way. This scrapping for interest creates deflation. But these are remarkably open ecosystems. People accept cash in so many ways, they trade value in so many ways. Some folks use barter - and work outside the money supply but still transfer value back and forth. Some neighborhoods develop local scrip they can trade - labor hours, etc. Folks are very creative about transferring value. This is entirely different from cryptocurrency ledgers, which make them so interesting. We visualize cryptocurrency changing hands, but in reality it is more like gold in a vault - people can purchase title to it, but it stays in the vault. People can exchange titles, etc. But all that really happens is that coin balances get assigned to different owners. There is no cryptocurrency that has no owner. There is no 'loose change' out there. In this way, I view cryptocurrency ledger like the cooling system in a nuclear reactor. Fiat currency markets are the uranium - the reactive material that produces the heat. But the cooling system, aside from needing to vent to maintain stability, is a closed system. In a perfect system, the radioactive water would be permanently and safety sealed. It's purpose is to transfer the heat from the core engine to the turbine to generate electricity. The interfaces - where heat is transferred from the core to the turbines and eventually out of the tower - these are the fiat to crypto exchanges. The cryptocurrency as it is designed in XRPs case is not designed to be a currency - it is designs to be a digital asset/token that relies on the circulation of its own ownership transfers to keep the convection current of value moving. What is remarkable about this asset, is that as more value is transferred - as more exchanges occur - the system does become less efficient - it gets more efficient. This is what is so strange about the model. In the nuclear reactor example, if the water temperature gets too high and causes instability and the cooling system ruptures, pressure is relieve and water boils off - causing a meltdown. Overheating of the water causes problems. But if the water doesn't move, you have the same problem! Electricity can't get produced. I am sure there is an ideal heat for the XRP ledger market. There is likely an ideal operating XRP token value and transaction cadence. We are nowhere near it, but speculative attempts to dislodge the system are sort of like someone sitting outside the coolant pipe with a blowtorch trying to heat up the water. My point is, XRP is not a currency that can escape the ledger. It is water trapped in pipes, which is why there is only so much of it. It is not, by design, a daily usage currency. This has been said over and over again by Ripple - they are not treating the asset this way. That doesn't mean that others can't, but the whole interest thing? Notice that many exchanges are offering to pay interest on cryptocurrencies using homebrewed stable coins. This is the 'XRP_2' I think we are discussing, and it is already happening. Every company with a custody solution that wants to attract customers will offer their own stablecoin as interest on its own ledger. This is what makes a project like Kin so interesting to me - they have two different liquidity loops (a forked stellar loop and an ethereum loop) connecting/exchanging with different interfaces. I think this will become a viable pattern for other business applications of cryptocurrency that want transaction and backoffice layers. And thankfully, we will have InterLedger Protocol to transfer value across all supporting ledgers - but wait, that's more reactors, and more choices of cooling systems. Will efficiency always win out over popularity and politics? Who on earth knows... So what do we own exactly, in XRP? We own the water in a hydraulic system for transferring value between reactors. Not a currency. An asset/token. But still super weird/crazy.
  24. 19 points
  25. 19 points
    Not exactly going to make a compelling argument for economic liberalization with a name like that, lol.
×