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Everything posted by KarmaCoverage

  1. Futures can enable the investor to bet "long" or "short". In fact every contract has some trader on both long & short side of it. The good thing is that they enable a trader to control their risk exposures. Options are better IMO because you have more strike prices, you can do multi-leg trades and control your risk exposure more acutely. To be fair though, I've never traded futures or forward contracts.
  2. I think it is broadly underappreciated just how significant Ripple's war chest of XRP will be in stimulating liquidity growth through their "market maker incentives".
  3. It is an indication of the broader crypto markets maturation. So what¿ if it's bitcoin first, something has to be the crash test dummy. The key point is that a large credible exchange is offering futures on a digital asset. I know there are others that offer SWAPs, but they are smaller than Bakket.
  4. https://www.coindesk.com/bakkt-says-its-cleared-to-launch-bitcoin-futures-next-month Surely XRP futures will follow, but IMHO this represents a significant advancement in the maturation of the crypto markets. The markets need futures for risk management practices to be accomplished. Cred already uses futures to hedge the risk exposures when they facilitate loan of XRP.
  5. Nah bro, sell everything immediately. ...but seriously, I'm reading through this and it is pretty good, it is from 2018, but like as was said above, this is all dead inline with Ripple's talking points.
  6. There was a thread about the data flow through Coil, and privacy issues. I forget what the final thinking was, but I'd think some kind of VPN or ZKP methodology could provide appropriate privacy.
  7. I believe the answer is yes. It's been a while since I looked at Coil under the hood, but I think they made a major technology shift towards a browser plugin (or maybe it was away from the plugin methodology, I should double check). Anyway the design goals of Coil is to create a seamless experience for users and content providers. Content providers should be able to easily provide content with both a "coil: pay for play" revenue model and simultaneously an "advertising revenue model" for users who don't want to pay to play.
  8. I found it invigorating , So fun to see all the collaboration and progress. The thing about fundamental innovation, is that it always "takes root at the edges" of the market. China has been wanting to see the IMF/World Bank have some competition for 20 years. It's been clear for a while, but this video drove home the point... the Asian 10 payment markets are going to be the first stepping stone for the IoV.
  9. Just listened to the whole thing, this was excellent. @xrpmommy Where do you find these? I didn't know that the "Asian 10" had an payments interoperability initiative. The regulator lady was great to hear, and everything they said seemed to line up with what Ripple has envisioned and communicated.
  10. Someone correct me if I'm wrong, but aren't all/most of the stable coins simply structured like a margin loan? @Stellios Aside from risks baked into how a "stable coin" is structured, you have to realize that there is a need to network together all financial networks globally. A network of financial networks. Personally I think it is a great idea for banks to serve up their own stable coins, it would be the exact same thing as a Band Deposit, but digital. Then I think that would encourage the Central Banks to hit the gas on CBDC, which would simi-invalidate the bank deposit DA, but not really. Remember when the internet was forming and the corporates were building their own intrAnets? Banks standing up their own DA only makes sense when looking at it as just a digital bank deposit... but no single Corp network ever became "the internet". Maybe AOL came the closest, and we know what happened with that. This is why ILP was such a genius strategic move from Ripple. They recognized early that their Rippled/XRPLedger tech would have to compete with other accounting systems, both distributed and centralized. Then their bet became "XRP as a bridge asset", or said another way "XRPLedger as a bridge ledger", which makes sense to me on the surface, because internationally sometimes neither transacting party wants to submit to FX risk, or holding fiat in the other jurisdiction. Time will tell, but I've been genuinely surprised by the brilliance of two or three of the Ripple team's moves. It took me some time to understand though. I think the paradigm shift is in understanding the nature of how distributed systems will impact the environment in which Financial Services will be operating going forward. You have to know both "the old world" & "the new world" to manage the transition.
  11. r3 has the distributed business logic, Ripple has the distributed transaction settlement methodology, some collaboration would be sensible. I was unaware of SBI's involvement with r3, interesting.
  12. It would be a terrible idea to have the US payoff all it's debt. We need the benchmark for a "risk free" asset.
  13. At first glance, this looks like RippleNet, not IoV. This is a payment flow from one USD Corp, to two beneficiaries in another currency. The internal flow at each FI look to be inline with how Ripple has been articulating to banks how RippleNet would work for years. Because there will be IP fights, where other banks try to tell BoA they can't do something using a certain patented method. That and the IP attorneys both want work now, and when the fights start.
  14. I've thought about this question before. How much liquid value does XRP need to have, to serve 100% of the global international payment flows? Start with the $x trillion "locked up" in nostro acts, then consider inventory turnover cycle times being drastically improved (less time). Once you answer that 100% number, then you can reduce it to actual market share. Once you get that number, it may be interesting to see XRP value Then I would consider a growth rate in global payment flows, say 2% existing growth + 1% for boost in economic activity due to reduced transaction costs & time. So say 3% (I'm making this up out of thin air, it is the methodology that matters), then extrapolate that into some sort of XRP demand growth trendline. Then you can consider other market forces, like speculation and resistance to adoption by incumbent players. Obviously nobody knows, but it would be a fun exercise. D Edit: Great video btw.
  15. @XRPboi yes, Bob is talking about the same environmental change that I was. I'd think that the central banks would want to get their domestic RTGS systems operational first. Then focus more on transactions with other central banks. Most central banks have had 2020 as the target date for their RTGS implementations your live. Most have already been working on RTGS for, 5-7 years. XRP has the best potential to "create value" (ie, reduce friction, time, & both TX cost, and float cost) in an enviroment with ubiquitous RTGS systems that need to be networked together. XRP's value will be correlated to, how much value creation it can accomplish.
  16. I haven't listened to it yet, but I wouldn't expect a treasury sectary to say anything about how private banks make international payments. His focus would be on the domestic financial systems. I'd expect them to be discussing something like using distributed ledger technology for domestic interbank settlement, money laundering, and counterfeiting. As all the Central Banks get their RTGS systems live, it creates an environment where a digital bridge asset like XRP can thrive, and gain competitive advantage over traditional correspondent banking methods of moving international payments.
  17. All I hear is, "CBDC". Which IMHO would be great for XRP, because it would enable XRP to connect digital fiat.
  18. Yeah, this is more or less the way I was thinking about it. I do however think that there is a role in a global monetary system for a digital asset that is jurisdiction-less. I don't want to see, or I guess I think it would be inappropriate for a private company to play the role of "global central bank", but I guess that's what the IMF functionality performs. Idk, I'm just fascinated by all this stuff, at the economic and monetary system architecture level.
  19. @Lamberth I have uncertainty about this. I think your not far off the mark, but only time will tell. I've taken the view of looking at crypto exchanges as "investment banks" conducting IPO or other OTC crypto asset sales. That said, I also think what I outlined in that "How xPool" write up is the methodology which best enables the continued application of well understood monetary policies. The exchanges would be functionally operating a "narrow bank" business model. Monetary policy makers would would retain the capacity to adjust interest rates, access to "reserves" and thereby the "money supply". This is how I envision a CBDC system being best designed. As for Ripple and XRP and the international payment flow market, I could see the methods I outlined being applied, but only avaliable to an inter-central bank market rate of interest. Sort of like how a domestic central bank pays interest on their "reserve account balances" but only banks can have a reserve account, except that the central banks would be paying Ripple to borrow how ever much XRP inventory they need to float their current account trade flow. @tar @Wandering_Dog ?
  20. This could be done in a number of ways... but yes, I think xRapid is intended to use the "public liquidity" from the various participating exchange's orderbooks & users. They could also use OTC liquidity. A 3rd option would be some sort of borrowing of XRP (Ripple subsidies for Market Makers) & or fiat, or some other kind of derivative. This is where it can becomes very important to have an official index for the FX price. I forget who it was but I think an index was announced in the last month or so. If the banks hold XRP directly on XRPL, and there is an index to price the FX, then you could just go direct Bank A > XRPL > Bank B
  21. Regarding "no valuation model", I'd say that may be true for BTC. However for XRP, ETH, and other crypto assets that grant access to their network's functionality, I think it gets a lot easier to develop a fundamentally sound valuation model. Regarding the retail investor's ability to assess the risks, most people don't understand what a simple equity or debt investment is, let alone the derivatives based upon them. Even people with $10 million are often clueless. In my opinion, one of the fundamental reasons why there needs to be crypto derivatives, is for Risk Management. There is all kinds of strategies that can be done with the various types of derivatives. So I'd look at banning them with a cocked head and a squinting eye, with the thought in my mind, "are you sure you really want to do that?" The UK is a financial hub, so this may be counter to their financial industry's best interests. Smells of the same flavor as when governments spoke of "shutting down bitcoin", a mix of arrogance and ignorance. Put the derivatives together with a smart contract, and good luck UK regulators on shutting it down. Facepalm.
  22. Quick story... I was at a bachelor party at a house on the river last weekend. When we got there, I immediately went to the back to check out the river and dock. I noticed a rope tied from a tree, and for whatever reason had the thought, "someone could hang themselves with that". Fast forward to that night, I'm grilling and decided I should climb the rope. So I do, then walk back over to finish grilling. The two brothers whose house we were staying at said, "oh that is dead Dan's rope". I asked, "what?" They said their dad had found their neighbor in his basement and he had hung himself with that rope. The situation messed with their dad's head a bit. I dont know why, but their dad kept the f-ing rope, and says, "it's been tested, it's a strong rope" because Dan was a big guy. Needless to say, I didnt climb the rope again. It was weird. Suicide is not a joking matter.
  23. No not quite, I was making 2 separate points. 1. At some point a market maker (MG in this case) has to trade with a counter party. So, I was just considering the "public markets" at the exchanges to be the counter party. With the increase in speed, you get a shorter inventory turnover cycle, which means you can float less value to serve up the same payment flows. MG as a market maker, can account for its liquidity flows internally, till their balance in each fiat gets out of balance, and they run out of float for predominantly outgoing corridors. At that point they will need to trade with a counter party that has an inventory of the fiat they ran out of. 2. If MG is to act as a market maker, they will need some inventory of XRP to trade, to gain the operational efficiency of a bridge currency... a bridge currency that counter parties also want to trade in. So Ripple could give or loan MG some XRP as a "market maker incentive".
  24. @ADingoAteMyXRP You made a great post. I'm not sure there is enough public liquidity on crypto exchanges to source the liquidity for balancing their funds flow across corridors. Guy said they operate in "200 countries and offer 22,000 corridor parings". He also spoke of some "backend or operational improvements" by using Ripple's tech, and those two comments made me think of this. If Ripple wants to pony up the necessary amount XRP for Money Gram that would seem to be in line with their strategic goals behind their investment in MG. Money Gram would be acting as an "institutional market maker". I wrote this, but it is just me thinking from the perspective of "what would I do if I were CEO", and I dont believe Ripple has said anything about xPool. How xPool may work
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