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Wrutherfoord

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  1. Like
    Wrutherfoord got a reaction from thinlyspread in Chat: General   
    Hi Bob,
    When you say the "mechanism is NOT in action yet," is this because it's not finished technically speaking, or is it because the RippleNet volume has not reached the necessary threshold to actually "drive XRP into the bridge currency position?"
    Whatever the reason, when would you expect to see the mechanism activated?
    Thanks very much for sharing your point of view and for helping to keep us XRP speculators grounded in reality.
    Walt
  2. Thanks
    Wrutherfoord reacted to BobWay in Chat: General   
    I think Polysign is really big for the XRP Ledger and ILP RippleNet components as well. I'm not sure what features they've implemented for working with other coins or contract code.
    It is important to understand that banks, exchanges and "gateways" (Ripple Fox, Gatehub, Bitstamp, RippleChina, etc) are all trusted with other people's money. Keeping that money safe requires scrupulous security practices related to XRP Ledger secrets and ILP transaction signing keys. Institutions like these need to protect those keys and secrets from both outside attackers and INSIDE threats as well. They also need to provide for system continuity if one of the key human operators dies or becomes malicious.
    A key technology for managing these threats is the XRP Ledger's 'multi-sign' feature. However, the same concepts apply to ILP components as well. But 'multi-sign' just means you have even more keys to protect from threats. Just by looking at their naming "poly" = "many", so it seems reasonable to say that PolySign is an institutional solution for managing multi-sign keys, and likely also for authorizing and signing a high volume of XRP Ledger and ILP based transactions.
    Once you've convinced banks and other institution that using the XRP Ledger is a good idea, then eventually the technical people from those firms start to ask "how" and for "best practices". It seems to me, PolySign has created a system that implements those best practices.
  3. Like
    Wrutherfoord reacted to cryptoxrp in Q1 postmortem analysis and Q2 speculation   
    Maybe I am getting carried away.... but just imagine if Ripple has allready sold most of its escrowed XRP but is still holding it for the buyers. Central Banks, Institutions and other interested parties. It would explain the drop in sales... and it would explain a probable incentive for a higher price. 
    It would be interesting to ask BG if they have done any ‘pre release escrow selling’. And if they are holding XRP for their customers.... ‘safe-keeping’.... custody....
  4. Like
    Wrutherfoord reacted to BobWay in List: The Voices in Bob’s Head   
    Sorry to disappear for so long. The week turned out to be more involved than I thought.
    Just as a quick recap, I've been fighting prostate cancer. I had radiation treatment, but my PSA numbers have not responded in the way they were expected to. (down) Unfortunately, they have been trending up. This is quite puzzling to the doctor's because I caught the cancer early. It was also a less aggressive variant that should have responded to treatment easily. That has been coupled to some nagging discomfort in the area that won't seem to go away either. 
    So last week was a bit stress inducing. I had two full body scans last Tuesday and Wednesday. The first was a bone scan and the second was a full body CT scan. The goal was to make sure none of the cancer had escaped and spread. Medicine being what it is, the scans had to be done, read by a radiologist, then relayed to my oncologist. I had to wait on the final results until this Tuesday. 
    So in between, Janet and I decided to mitigate the stress by driving to Baton Rouge, LA to meet the awesome XRP Community there. Many thanks to @RippleWraith for setting up an awesome dinner meetup. And even more thanks to everyone who showed up despite the torrential rain and flooding happening last week. RippleWraith even brought an amazing birthday cake to top off the evening.

    It turns out, it is only an hour and a half more of pouring rain to make it New Orleans. So Janet and I spent my Birthday there. Her gambling (she won) and me drinking (I won!) We managed to get out of there Saturday morning just before the flooding got to NOLA. Turns out only six hours more rain to make it back to Houston! 
    We ended up going straight to my mothers to pick up Puccini, then stayed over Saturday night to be there for Mother's Day on Sunday. Of course, the endless rain and driving broke something on the car. So Monday meant fixing that. Then staying over longer to see the doctor on Tuesday.
    Good news is, it turns out, all the scans are clean! That was a huge relief. We still don't know what is causing the numbers to stay up, but it is seeming likely that it may be prostatitis. I've got a long course of antibiotics to take now and more testing and followups later in the summer. So all in all, it looks like I'll survive.
    So now that I'm finally home and back online onward to the first study group session. I'll post about that in another thread.
    Sorry to keep everyone waiting. But at least, XRP has been trending up in the meantime!
  5. Thanks
    Wrutherfoord reacted to BobWay in Answer: Bank's and XRP   
    Price up to now has been completely consumer driven as far as I can tell. I don’t know when that will change. I really don’t have any more specific information than you do. I just have a different background in which to interpret the news and press releases that I read.
    I’m simply teaching people the background information I have. I hope that will help you and others better interpret new information and reach your own conclusions.
    There are many reasons banks are unwilling to do something new and weird at the beginning. Singling out regulatory issues in the abstract isn’t particularly helpful go anyone’s understanding. This is because there is no moment in time when “regulatory issues” become settled.
    Banks will use new systems and technology when two things are clear:
    They are going to make more money, or avoid losing business to others They are sure they are personally complying will all their necessary regulations. Ripple’s job is to help them reach those conclusions.
    After they start losing business to others doing so. The same rules apply.
  6. Like
    Wrutherfoord reacted to BobWay in Answer: Bank's and XRP   
    Just to be clear, I have great respect for Brad as a leader and also complete confidence in the direction he has steered Ripple. If I didn't I wouldn't be holding XRP nor here talking to all of you.
    However, Brad and I don't have the super close friendship I feel for Stefan, David, Arthur, Nik, Rome and many other Ripplers. I'll defend my friends to my dying breath. But expect me to give Brad some **** if I ever think he makes a bone headed move. After all, he still is "the new guy" to me. 
    That said, let's be a little realistic when we analyze what happened in 2018.
    Through January while XRP was up 1,000 times in six months, everyone in banking thought they might get promoted for recommending their bank jump on the XRP bandwagon. Later in the year, with cryptocurrency down dramatically, those same people were likely wondering if they would be fired for suggesting they push forward with cryptocurrency. After all banks pride themselves on stability. Going "all in" on volatile assets is not how most banks want to be publicly perceived.
    But here in 2019,
    Small banks are still being overcharged by big banks for the international payment services they need to provide their customers. Remittance companies still have liquidity problems and trouble getting banked. Customers are still having payments go missing, even after paying exorbitant amounts. The problems are still real. RippleNet and xRapid's solutions still solve them.
    What I expect to see is:
    Smaller banks and payment services companies moving the fastest towards XRP as a new liquidity alternative. People at those banks get promoted for creating better and cheaper services for bank customers. Larger banks favoring RippleNet's end-to-end payment synchronization solutions. Nobody ever gets fired for improving internal efficiency, reliability and compliance of traditional products.   That's my bet on the next steps toward money's future. 
  7. Thanks
    Wrutherfoord reacted to AlkalineHume in Answer: About the patent, Let's talk   
    This made it click for me.  It's so devious!  I think a good analogy is to a siphon: there is a pathway for these trades to happen, but if it's in an "inactive" state, nothing is flowing.  Nobody has an incentive to start the flow, because they'd have to pump their water up over the bend.. why not just use a siphon that's already running?  Your algorithm decides when to suck on the hose to start the siphon.  If your path is massively inefficient, you're going to have to suck pretty darn hard to get the flow going.  You might pass out before it gets started   But if it's just a little less efficient than the current path, it only takes a little effort to get it going and then it sustains itself.  But it seems like the real key is not so much in getting your siphon going, but in breaking the other guy's siphon so that you're the only game in town.  Of course, if your pathway can't actually handle the trading volume (i.e. if you were propping up gold as a bridge currency?) you'd never succeed in breaking the other siphon, and it would all collapse soon after you stopped incentivizing the MMs.  But if you can handle the volume, it seems like the outcome is assured.
    It seems Ripple would stand a great chance of succeeding against fiat/fiat pathways because those pathways have no natural advocate: who is going to spend USD to try to pull MMs back to the dollar?  Maybe the US government, but that seems pretty unlikely.  However, I think you could have some interesting game-theoretic scenarios where Ripple and "Zipple" compete for bridge currency dominance, each trying to wrest flows as cheaply as possible from the other.
     
  8. Like
    Wrutherfoord reacted to AlkalineHume in Answer: About the patent, Let's talk   
    The profit MMs make is their spread times the volume.  As volume increases, they can reduce the spread they are willing to buy/sell at and maintain the same profits.  By using the method of the patent to increase the volume through xRapid, you are effectively reducing the spread, as MMs will compete with each other for the business.  If the spread is small enough that the fiat-XRP-fiat pathway is cheaper than the fiat-fiat pathway, the MMs will stay regardless of whether Ripple provides and incentive.
    As I said in my post above, a major part of the method's effectiveness is if you can turn off the other siphon.  If Ripple's incentive succeeds in pulling MMs away from the fiat-fiat channel you'd know that because the fiat-fiat spread would get a lot worse and the volume would plummet.  The same fiat-fiat market they left to chase the incentive wouldn't exist anymore, at least not in nearly the same form, after the incentive succeeded.
    It's vaguely like a company lowering their prices to put the competition out of business.  Once they succeed, they can raise their prices again.
  9. Like
    Wrutherfoord reacted to BobWay in Chat: General   
    So many good questions. I'm not ignoring them. Just need to put together a few more spare minutes to answer them properly.
    I'll try to answer the easy, short answer ones first.
    I do know Justin and worked with him at Ripple from the beginning. I like him personally. I was actually surprised by Tron's success. Not because of Justin, but because I didn't know the two were related. Justin told me over drinks in SF that he was going to start a new blockchain and also what the focus was. I didn't think to ask the name at that time. :-)
    Justin is Chinese and I'm Texan. So I know I have some cultural bias in regards to "normal" behavior. I see Justin as quite a good self-promoter. He is working mostly in China among Chinese folks to which I'm sure all of his behavior is culturally appropriate. For my personal taste, he often seems a bit "flashy" or ostentatious in his self promotion. But again, I completely realize that is my own personal cultural bias. So in the end, I am happy for Justin's personal success. I hope he follows through in creating a lot of value for everyone over the coming years. I'm not jumping up and down to go work with him, but mostly because I don't think I would be any good at it. I simply have a different set of skills.
    This is very much like what Coil wants to monetize. Someone forward this link to them!
     
    I don't know any specific plans. I have written a little about Corda Settler elsewhere in these forums though.
    Each company is working to create value in their own way. But "rippling technology" (XRPL & ILP) does tend to tie all of this new value creation together into a single ecosystem. Corda is going to be good at "settling" non-money forms of value, against monetary forms of value. The two are simply inseparable in business. What both ILP, XRPL and Settler have in common is that they assure both parts of a business deal happen in a single "synchronized" (atomic) transaction.
    It makes a lot of sense for R3/Corda to work with Ripple's various "rippling technologies" because they are the leader in "synchronized" monetary transactions world-wide. Their doing so would benefit the RippleNet ecosystem immensely (from my personal perspective).
  10. Thanks
    Wrutherfoord reacted to BobWay in Chat: General   
    Bob's Note: I expanded on this answer a little bit in the patent thread. I think any discussion should continue there.
     
    The primary reason for talking about "my mechanism" is to convince everyone that "at least one mechanism exists" that could drive XRP into its prime position as a bridge currency. Now lots of people in the cryptocurrency space presume that is true. They also presume that their favorite cryptocurrency is going to become a bridge just because it is awesome and had (X special feature) that other currencies don't have.
    But people that study the economics of the ecosystem are rightfully skeptical that ANY cryptocurrency could actually become a de facto bridge currency. If you try to write down the sequence of steps needed for that to happen, there are almost always significant logical or conceptual gaps in most cryptocurrency fan theories.
    So what I set out to determine was, "Is there really a plausible path to make that happen?"  And also, "What are the necessary requirements and 'forces' needed to actually make that happen." That is what I documented inside the company. That was also what we patented and I assigned to Ripple. (I've discussed this elsewhere on this site so I won't rehash the back story.) The company has hinted at these techniques, but has not detailed any particular strategy that they will employ. (At least based on what I've read in their press releases and public statements.)
    I think I've discovered "the last algorithm" that RippleNet needs to drive XRP into the bridge currency position. And also to maintain it there in perpetuity. But that algorithm won't necessarily be the first one employed to help XRP along on that path. There are other ad-hoc ways that might be simpler to implement and more effective for the initial corridors that companies want to deploy.
    Now keep in mind, saying "I discovered the last algorithm" isn't very humble. Also note that once you find "a way" of doing something thought impossible, it becomes much, much easier to find a second even better way. That was the lesson of bitcoin's consensus algorithm. No one could find a good consensus algorithm because no one thought it could be done. So no one thought they should bother looking. Once the bitcoin algorithm was found, then boom! The ripple algorithm, a re-emergence of other known 'academic' algorithms, proof of stake, proof of space...  Expect the innovation to continue.
    So, there is no guarantee that Ripple will ever deploy my exact algorithm. They may have even better ideas in mind. Ones that I'm not privy to. But what I do know for sure, is that most of the other cryptocurrency teams don't have the resources they need to drive their currency into the bridge position. Nor do they even understand the economics of the ecosystem well enough to know why that is true.
  11. Like
    Wrutherfoord got a reaction from ColonelWhite in Chat: General   
    Hi Bob,
    When you say the "mechanism is NOT in action yet," is this because it's not finished technically speaking, or is it because the RippleNet volume has not reached the necessary threshold to actually "drive XRP into the bridge currency position?"
    Whatever the reason, when would you expect to see the mechanism activated?
    Thanks very much for sharing your point of view and for helping to keep us XRP speculators grounded in reality.
    Walt
  12. Like
    Wrutherfoord got a reaction from mike91 in Chat: General   
    Hi Bob,
    When you say the "mechanism is NOT in action yet," is this because it's not finished technically speaking, or is it because the RippleNet volume has not reached the necessary threshold to actually "drive XRP into the bridge currency position?"
    Whatever the reason, when would you expect to see the mechanism activated?
    Thanks very much for sharing your point of view and for helping to keep us XRP speculators grounded in reality.
    Walt
  13. Thanks
    Wrutherfoord got a reaction from Ryyy20 in Chat: General   
    Hi Bob,
    When you say the "mechanism is NOT in action yet," is this because it's not finished technically speaking, or is it because the RippleNet volume has not reached the necessary threshold to actually "drive XRP into the bridge currency position?"
    Whatever the reason, when would you expect to see the mechanism activated?
    Thanks very much for sharing your point of view and for helping to keep us XRP speculators grounded in reality.
    Walt
  14. Like
    Wrutherfoord reacted to BobWay in Chat: General   
    I moved the above question to General from the introduction List.
    Santander is very forward thinking. They were also very eager to expand their corridors. So if that is what they say, I'd believe them at face value.
    What maybe be confusing people is the difference between xRapid as a product and XRP as a bridge or settlement asset. Specifically, xRapid started out initially as a product marketed towards payment services and remittance companied. This is a separate payment ecosystem to bank transfers. (There are other payment ecosystems). The xRapid product uses XRP as its bridge asset in order to facilitate liquidity for those payment services companies.
    Santander started out using xCurrent before xRapid even existed (if memory serves). All xCurrent customers get to decide how they want to configure each of their corridor's liquidity relationships. Often they use some form of synchronized nostro or vostro accounts. But of course these need to be pre-funded or settled after the fact. How that happens is up to the bank. XRP payment paths are as good a solution to pre-funding or settling bi-lateral (two party) accounts as they are for other types of payments. 
    I have no specific information regarding the latest on Santander, but It is reasonable to presume that xCurrent banks might decide to use XRP in their flows, without being that effort branded as xRapid. Since the xRapid branding was developed for a different industry.
  15. Like
    Wrutherfoord reacted to BobWay in Chat: General   
    The mechanism is NOT in action yet and it is by no means "magic". It can't "spike" the price on demand.
    The mechanism is meant to drive XRP into the bridge currency position. It does this by steering payment from traditional fiat/fiat corridors to fiat/xrp/fiat corridors. But to make that work it needs as much RippleNet payment volume as it can get. That includes both bank payment volume and xRapid payment volume.
    The mechanism in ONE way to unite to currently different ecosystems. Bank payments vs Payment Service Provider payments.  Into a single unified system. This has to potential to drive a huge "network effect". (google that term)
  16. Like
    Wrutherfoord reacted to rippCurrent in Chat: Regulations   
    Hi @BobWay,
    I know regulations were discussed in the Hi, I'm Bob thread but this just came up and i wanted to know what your opinion is.  Do you think the token taxonomy act is what banks and other major FIs are waiting for in terms of "flipping the switch" and leveraging xRapid?  Or,  is there another regulatory hurdle we must overcome in order to see xRapid use grow? 
    As far as this tweet, idk if you saw it, is there any specific video you could share that you think would be best for his request?  I linked the SBI ripple Asia vid on ripples website, but im sure there are much better ones out there.
     
    Thanks to whoever added chat: 👌
  17. Like
    Wrutherfoord reacted to BobWay in Answer: My Dinner with David   
    I just wanted everyone to know that Dinner with David (and four other great guys) was awesome! I really did come away pumped after our long discussions. The fact that everyone at the company is in agreement that David & Arthur's  original (and later my) "long term" vision for XRP acting as a bridge currency has/is/was/will always be the guiding star forward. At least that is the way I heard it in my head. David can make his own public statements.
    But what PUMPED ME UP the most was that it is no longer seen as a "long term" vision. It is a focused activity that the company NEEDS to pursue now. But best of all, they ARE all actively pursuing it, NOW! To David, they all seem unified in the realization that, XRP as a bridge currency, has changed from a “WANT to happen” to become a “NEEDS to happen.” Or else TIME will shift from working with Ripple, to working against Ripple.
    The early Ripplers really, truly BELIEVED in the concept of a cryptocurrency and everything the fine folks on this forum believe. However, Ripple, for all the right reasons, hired the true cream of the crop from the financial services industry. Their experience gave Ripple insight into MANY many ways to improve payments and communication within the financial networks of the world. But they were not intrinsic fans of cryptocurrency. They were open to the idea of course. But still harbored some skepticism.
    For a long time it was fine with everyone if Ripple was seen as an enterprise banking software company. But that silly pipe dream evaporated as everyone realized how much more value could be created by shifting the focus back to XRP. Ripple still makes great enterprise banking and payments software. That will never stop. But Ripple is most definitely a cryptocurrency focused company again!
    ---
    Keep in mind, some of what I said above is perhaps owed to my interpretation of what David said and its personal impact on me, colored by my history with the company. I'm not a reporter quoting David's exact words. He speaks for himself. I'm writing my personal impression of what I heard along with my feelings about it. This may not be the official company position.
    But know that nothing we talked about was private. At best it was semi-private. We were all in the middle of a crowded restaurant talking pretty loudly. We were also all talking openly to people at the table neither David nor I had ever met before that moment. So I'm not selling out my friend or saying things whispered to me.
    (David didn’t say this next part.)
    I personally believe that the company is dramatically revisiting every situation where the software licensing cost was seen as a barrier to entry for institutions. I personally believe that was a case of “false economy”. Ripple the company benefits much more from the customers that small and medium size banks bring, then they do from any licensing fees they could charge the banks.
    Hearing what David has to say made me ecstatic…
    (But I want to be clear about why. I don’t want anyone mistaking what I’m saying as, “XRP to the moon, next week.” XRP will go to the moon, absolutely, in my mind. But I have no idea when.)
    … The reason it made me ecstatic, was that a long while back Stefan nicknamed me Cassandra. In Greek mythology, “Cassandra is cursed to utter prophecies that were true but that no one believed.”mI actually got a substantial raise that on my review said, “I have to rate you highly, because your initial ideas always end up being the ones we implement...  wait for it  ...after trying every other possible alternative. So truly believe me when I say me being ecstatic was not financially related or something you should trade on.
    The reason was pure vanity.
  18. Like
    Wrutherfoord reacted to XRPHornets in List: Unanswered Questions from "Hi, I'm Bob!"   
    This is a new question that I meant to ask before so am posting here...
     
    R3 And Ripple .
    How much integration is there between the two companies ?
    What is the likliehood that R3 Corda will use XRP outside of Japan (where R3 are partnered with SBI )? 
     
  19. Like
    Wrutherfoord reacted to BobWay in Answer: Wen Moon?   
    When bridge payments flow through exchanges they can profit based on fees that charge to help deliver the payment. This is in addition to any other fees they charge the trader for his trade. In in the future, exchanges will be competing among themselves for this payment flow by adjusting the fees that they charge rather than the price of XRP on their particular exchange.
    Arbitragers will assure that all exchanges have roughly the same price. Arbitragers profit on others mis-pricing, not based on any externally driven value.
    So if you are a speculator in XRP's price, you don't need to worry too much where you trade. But certainly exchange will want the additional fee revenue and they will compete for the payment business. And note that was in Coinbase's original vision.
    I have no knowledge of what Coinbase's current plans are however.
  20. Like
    Wrutherfoord reacted to BobWay in Answer: Wen Moon?   
    Other use cases for XRP and the XRP Ledger can only increase the utility of XRP and hence its price. From my perspective, that's what Xpring is all about.
    In working through the dynamics of forcing XRP into bridge currency usage while not putting downward pressure on the price, I restricted my analysis to forces with strict causation. In my mind that is the most pessimistic case. But there are a lot of correlations that might actually be social or psychological causation if you are willing to be a little less pessimistic.
    For example, the biggest likely correlated upward pressure on XRPs price, might come from people wanting to hold the world's most liquid asset. A psychologic reason might be both that you can convert it to ANYTHING else that you need instantly. That's great if you like to travel or deal with folks all around the world.
    But psychologically many might also consider that as the world grows, more and more value (goods and services) is actually created by the growing world population. Value creation is not a zero sum game! And since XRP is in limited supply, who can own how much XRP is a zero sum game.
    Which bring you back to my "Landed Gentry" argument. The landed gentry were perpetually rich, because they held a monopoly on a fixed supply commodity. (The land)  But there was a growing population who NEEDED (not wanted) to use their commodity. So as the population grew, they could always keep increasing the rent.
    The same argument hold for using gold coins as money. They are in fix supply and the population is growing, you can keep charging more and more for them. So you keep getting richer even though the primary asset you hoard (gold), generates zero value to the world at large, while you are hoarding it. It only generates value for others when it circulates (medium of exchange).
    So it's clear there is a tradeoff with XRP.  You might become perpetually rich. But, don't expect that others won't become annoyed that you have done so.
  21. Like
    Wrutherfoord reacted to DucPeter in Answer chat: Wen Moon?   
    Thanks for another great answer, @BobWay! But to help me understand you right: what would you consider short term or long term?
  22. Like
    Wrutherfoord reacted to Liagala in Answer chat: Wen Moon?   
    This is the part I was missing, thank you!  I was wrong when I said the issue couldn't be lack of a network - that's the exact issue, it just uses a different definition of the word "network".  Stellar (and anyone else) can use the electronic network all they want, but if they don't have the network of partnerships and bank buy-in that Ripple has so carefully cultivated all over the world, it does them no good.
    This is what brought me to XRP in the first place!  Getting all rowdy and trying to storm the castle rarely gets you anywhere.  Change most often comes from within, and this is the only coin I saw heading in that direction.
  23. Thanks
    Wrutherfoord reacted to BobWay in Answer: Wen Moon?   
    Absolutely, it has to be 100% automated. There is simply too much information to keep up with otherwise.
    And it also has to be scalable in the sense that as the volume of payments through XRP as a bridge increases dramatically, the amount of XRP you need to support the mechanism does not increase linearly with volume. Otherwise, you'll eventually run out of XRP, the mechanism will fail, and XRP will cease to be profitable as a bridge currency. Always remember, "It's a profit deal!"  If you can assure that, it takes all the pressure off!
  24. Thanks
    Wrutherfoord reacted to BobWay in Answer: Wen Moon?   
    So loaning XRP or deferred purchase or probably several other analogous process like this might work (at least temporarily), they all suffer from some annoying characteristics. I'm going to call them "outside proposals" because I heard proposals like these from non-Ripplers all the time.
    Most seems to (or in many outside proposals do) require favoritism on Ripple's part. Many outside proposals attempt to enforce price stability rather than assuring the narrow spreads necessary to reduce bridge payment transaction cost. Many outside proposals attempt to subsidize the proposer's risk. Most outside proposals I heard tended to be potentially very inefficient in their deployment of Ripple's XRP. 1. Perceived or real favoritism invites vicious criticism from the non favored individual. Paraphrasing you above, "Why to they get "free" XRP to start a profitable market making business but I don't?" This is likely followed by and endless parade of comparison complaints like, "Those guys got piles of XRP from Ripple and look how badly they did at (...). Personally, those sort of proposals from outsiders annoyed me as well, so I was alway quick to push back on them. But it took a really long time before I could propose a non-biased mechanism that served the necessary goals. Some forex market have what are called "specialists". These are market makers that special preference within the trading engine in exchange for guarantee liquidity. Of course that annoys the non-specialists there as well.
    2. Nobody wants price stability. Think ideas like large buy and sell "walls" with a narrow spread. XRP's price must be able to increase as its necessity in supporting bridge payments increases. But at any given instant, what is the right price that narrow spreads should be based upon? Well of course no one knows.
    3. I've heard proposals that went, "I'll make narrow spreads and if I make money doing it, I get to keep the profit. But if the market volatility moves against us and we lose money, Ripple should cover our losses (by selling or giving XRP). These were especially annoying to me.
    4. If you subsidize the wrong price in any market anywhere in the world, you invite arbitrage. It doesn't matter how high a buy or sell wall you put up. If you put it at the wrong price someone absolutely WILL take all your money. Subsidizing arbitragers is equivalent to giving away free XRP to random strangers.
    ----
    The mechanism that we patented:
    Is completely non-biased. It doesn't care which trader facilitated a payment. It works without enforcing or attempting to enforce price stability. Each market follows standard supply/demand dynamics. It only subsidizes risk on the trader supplied funds that actually facilitate bridge payments. Is scrupulously efficient in deploying XRP. This is what prevents it from putting a downward pressure on price.
  25. Like
    Wrutherfoord reacted to BobWay in Answer: Wen Moon?   
    I really don't know. I remember at the beginning Jed promised to give the vast majority away. But I don't know how it actually ended up. It turns out giving away free cryptocurrency in a way that is perceived as fair, is really really hard. In my option that is why Ripple inadvertantly still has so much XRP. It turns out that is a fortunate thing for both Ripple and XRP.
    The real obstacle Stellar or any new startup trying to do the same thing, is that to be the de facto bridge currency for the world, you need to divert payments that currently happen fiat/fiat, into payments that happen fiat/crypto + crypt/fiat. And banks have a statutory monopoly on fiat in most or all countries. Meaning they are already "favored specialists". So you need to work with banks and gain their trust. They need to assure that your proposal is at minimum "win/win" but also that it DOESN'T erode banking's structural advantage.
    Most cryptocurrencies don't have that kind of credibility. Most talk in the crypto space has been about "overthrowing the banking industry".  You go try to sell that idea to bankers. I dare you! :-)
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