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Zedy44

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  1. This sounds fairly plausible. Maybe Ripple advised for incremental volume targets for MGI and others to reduce risk of increased volatility around available liquidity across exchanges? If the trend on the charts continues, in addition to XRP's price slowly rising with the rest of the market, I'd also expect to see a significantly more stable XRP price if the rest of the market turns downward temporarily while in one of these higher XRP volume channels. Basically price will appreciate as the market appreciates, but downward pressure is nearly eliminated during these xRapid volume ramp ups. So liquidity will steadily be built over time with the only downwards pressure on price/iquidity when the rest of the market swings down during the low xRapid volume days of the month. Kind of like 3 steps forward, 2 steps back. This would lead to baby steps with liquidity / price and volume increases.
  2. Didn't someone report recently that student loan debt delinquencies in the US has for the first time surpassed mortgage debt delinquencies? I really don't see the housing market imploding again like it did in 2007-2008. For example,. if the US / global economy falls into a recession you can almost certainly bet when people have to choose between paying their student loans vs paying their mortgage they are going to choose their mortgages. This will subsequently cause the student loan delinquency rate to skyrocket similar to the mortgages during the last recession, but with limited damage to the broader markets since student loan debt is not liquid in any way. It's not like in 2008 when people owned something of tangible value in a home which lost 40% of it's value almost overnight. There's nothing for the lenders to offload like foreclosed homes or short sales. It's just debt obligations tied to individuals with nothing they can reclaim. I doubt there is much the banks and lenders can do to offload the bad debt except forgive most of it and overhaul (regulate) their lending practices to prevent such a bubble in student loans from ever occurring again. The only other major debt item I see barreling down on the US economy in the next decade are vehicle loans. New vehicles are prohibitively expensive, yet people are still purchasing them with 7 year car loans. If they trade in and roll their loan over within that 7 years, probably around the 3-4 year mark, the second note is going to be absurdly high for the value of their second new car. People will walk from these bad loans. This combined with the rise of ride sharing services rapidly on the rise should lead to a big overhaul of the automotive sales industry in the US.
  3. All I know is much of the fintech world will have all eyes on Moneygram's Q3 / Q4 reporting to see how ODL utilization is affecting their bottom line. I think we'll see a number of partnerships announced shortly afterwards if things are going well for MGI. Also, I no longer really know how the price of XRP will react if/when utilization of ODL ramps up across the globe, but I think whatever happens it will be happen pretty quickly. For now I'm just thrilled to see XRP getting utilized for cross-boarder payments. It's very promising technology and Ripple has become kind of the the tip of the spear.
  4. *shrug* Disappointing trend these past few months. I'm on the 3-5 year band wagon started approximately 2 years ago so I really shouldn't care so much. But my priorities have shifted as I now am in the process of selling one property and looking to buy another in a significantly more expensive area due to schools. Unfortunately I may be looking to liquidate a portion of my holdings to cover gains on my investment property sale. Not really what I want to use my XRP for, but with a few loss positions it's looking like the smart play for the time being.
  5. In the US taking out a loan does not incur a taxable event from an income tax perspective. I have a strong feeling many of the legitimate digital asset lender/loan services will get significant business during and after the next bull run when people realize they can leverage the value of their assets without actually having to sell them the day they need the funds by collateralizing them into a USD loan for short term usage. For people who want to entertain less risk, but still leverage their assets without selling them they'll turn to these kinds of services for passive income. Some countries tax laws will fair better than others for this kind of tactic. The demand for loans will drive up interest paid to lenders to entice more lending. This means more people flocking to buy their 10K LBA stake to secure the higher interest rate, which in turn should bring scarcity and ever increasing demand for newcomers to secure their 10K lockup of LBA. Will it really happen? Not sure. Personally, I'm not looking to expand my LBA position beyond what I already hold - enough to stake and play around a bit if I want. If LBA builds out partnerships and finds its way into some popularity I think it has potential to take off, but I'm really more interested in finding a passive earning tool as a lender of USD rather than crypto. Big issues coming will be around... Legitimacy. @cmbartley experience canceling his mistaken auto-loan and getting 2x refunded doesn't look great. Regulatory pressure. There are strict rules around loan companies which take an asset from a lender and then turn around and re-lend it for another asset and so far digital assets aren't on the radar for this yet. Does this happen with Cred? No idea. They claim they never lend for short selling, but that's about it and as far as I can tell there is no contractual language in place to guarantee even this much. Taxation. The taxes related to interest payments to borrowers. If you hold LBA you get a higher interest payout, right? Well does that mean the block of 10k LBA technically generates a dividend payout as the difference between the interest you get as a lender without staking the 10k LBA? The value isn't fixed between assets -- USD + 10k LBA = 7% higher payout vs. BTC + 10k LBA = 4% higher payout -- but could tax laws still interpret that as a dividend in addition to the percentage generated as income tax? I feel the whole lender/borrow crypto services are as risky if not more risky than investing in straight digital assets, but it's a business model and it has demand so someone is going to be successful long term. And keep in mind I think we are still really quite early to digital assets. We are just starting to see the potential of tokenizing pretty much anything. If the governance around tokenized assets makes them easier to handle than their non-tokenized variation you'll be seeing a lot more "things" transitioning to a token and as such will become lendable / borrowable in much easier ways than the world has previously been privy to, which could draw in even more demand for these kinds of services...
  6. I think the US has a recession coming, but everyone has 2008 fresh in their minds so they imagine a recession == years of stagnate growth, job losses, massive defaults on mortgages and a housing market collapse. None of that will happen in the next recession. Most recessions last only a few months...a quarter or two. And if we look at leading indicators the only one flashing a warning sign is the increase is student loan defaults, but the overall rate doesn't look scary yet. Now the big question IMHO is what effect the trade war and the interest rate meddling is going to do in regards to the timing and duration of the recession. We just lowered rates, which seems insane as they've barely increased since hitting record flows a few years ago. I think the trade war and the uncertainty around China and Brexit has artificially slowed growth so the recession fear looks delayed a bit. Plus as @Valhalla_Guy pointed out the news has been overly focused on Russia / the economy / Trump's politics since the election occurred. Usually markets sky rocket right before a recession hits and I looked at my 401k again today and I'm pretty sure we can't sustain these 17-18% returns that I'm getting year to year. That being said I don't think crypto will fair well in a recession. If a recession were to hit the broader financial markets people won't flood to Bitcoin or other digital assets over something like Gold or Silver. They'll use tried and true hedges against the risk. I think a recession would potentially threaten crypto's overall value and will force a lot of value out of the market temporarily. When it comes back in it might flow into better / more stable projects than the previous outflow. So maybe some good there...but overall recession probably not a great thing for crypto as a whole.
  7. Sorry replied to @alexdupre after reading the response too quickly. As Alex said new contracts start at 6 months and auto-enroll switches them to 3 after the initial contract is completed and the user opt-in's for auto enrollment.
  8. I agree @NightJanitor it is difficult to understand what benefit the LBA token holds to Cred given you can lend without it, but lending with it provides much higher rates of return. Maybe it's due to some underlying mechanic of regulation around lending services which need to collateralize the value partially against a 3rd party. In other words...if people purchase and stake LBA it inherently proves LBA is an asset with value and the millions of LBA that Cred sits on then appear to be fungible assets they hold. This in turn allows Cred to borrow against their LBA holdings and the initial lenders are paid back through a much larger investment made on behalf of Cred. I'm not sure if any of what I'm saying makes sense, but there has to be some kind of angle for Cred to create value from the LBA they hold. Either they can sell it (a-la XRP) and bring value through dollars or they can somehow collateralize it bring value through borrowed dollars. I mean 10% APR doesn't just come out of thin air. Whatever they are doing is certainly higher risk. They do claim they never use borrowed assets to short, but other than that it's kind of a mystery right now. I find a little comfort in Arrington Capital giving some approval to their operation, but I wouldn't go and roll all my assets into them without knowing a lot more about how the whole system they've built really works. This goes for really any of these lending services with higher single digit / double digit APR interest payments involving crypto.
  9. Ripple would not look to become a bank or financial institution. It brings too much risk to the table of a software fintech company that already has plenty of regulatory hurdles to clear. This is my sentiment as well. I bought MGI shares on the rumor and held past the initial dip to find even greater profit after the most recent quarterly statement they provided. If MGI proves to be a success story for xRapid's effect on a corporate bottom line, then I'd expect many more xRapid announcements over the next 1-2 years. I don't think any of the future deals will look like the stock option scenario with MGI (that was very unique), but I can see a lot of other companies sprinting to Ripple to get the ball moving on xRapid if the MGI experiment works.
  10. My issue with anything that is stakes and paying out in crypto is the tax implications for folks in the US. Especially for payouts that occur in intervals of seconds (I.e. VET/VTHO). I know the IRS will listen to tax payers who indicate certain transactional data should be interpreted a certain way, but it just seems like a headache in the grand scheme of things. Need more clarity before jumping into anything not paying out straight USD.
  11. Random thoughts.... BTC really seems like a social experiment at best when you look at the fundamental design constraints that still exist after 10 years. I'm honestly surprised at the massive infrastructure investments (ASICs / mining pools / mining services) that continue to grow year after year without much actual adoption taking place. Of course BTC does have one of the most proven code bases out there so I think there is some value in that. I don't think BTC is anywhere near as liquid as the broader makes it out to be (this is obvious through all the manipulation we've seen over the last 2 years). Of course some of these things XRP qualifies for too, but I find some sanctuary in the fact that Ripple has really built out the network in a very promising way.
  12. Zedy44

    Ripple is not XRP

    Ok for a more legitimate response... You are about 3 years late on this whole concern and discussion. Ripple has made many changes over the last few years to distance themselves from the association that XRP == Ripple. They really can't do anything about the fact that they hold a majority of XRP or that they are running a fintech software company that heavily leverages XRP and offer products that integrate with it. That's their business. How the broader market, various software applications, websites, and news sources choose to sometimes label XRP as Ripple or Ripple as XRP isn't under Ripple's control.
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