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Honeysyd

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  1. My concern is that XRP is not used in all Ripple products, but only in xRapid. In short, if Ripple takes a large market share of the total global cross border transactions (15 trillions USD + ), the size of actual transactions using XRP (like in xRapid) may be low. For example, if Ripple takes 20% of the total market share (15 trillion UDS) and xRapid takes 10% of the total transactions through all Ripple products, then XRP will be used for 2% of 15 trillion USD, which is 300 billion USD (15 trillion x 0.2 * 0.1). In this case, if the velocity of XRP is 10, then XRP would be
  2. The following link provides an good example of using the equation MV=PQ for the valuation of crypto currencies. In this article, INET (not XRP) was used as an example. https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7 The author of the article Kindly provides an excel file, in which the XRP value is estimated using the equation. https://drive.google.com/drive/folders/1SB_9CCcuu9N70Xr-9Uqi16oN-X9DwPna To briefly summarise, the global cross border transactions is assumed to be 15 trillion USD and this increases by 4% annually. The total addressable mark
  3. Now I understood. Using the model MV=PH, it seems to be clear if V increases faster than H, then P must go up. Something contradicting to a general notion is that when V is constant and H increases, then P is going down. In other words, a higher volume can results in a lower price if a circulation rate (or velocity, V) stays at constant.
  4. where did you get the number, $10 trillion? Is that the global daily volume of international transactions in USD?
  5. I agree with you. A question is the current XRP market cap is about 25 billion dollars. To support this price from the real uses of XRP, there must be 25 billion dollar transactions via XRP on average. An interesting point is that the SBI partners manages 80% of more than 20 trillion USD, and this excludes dormant savings (it would be appreciated if you provided where you found this information). I wonder if anyone knows the daily global money transaction in USD (or other fiat money). If we know this, then we can assume the XRP market cap base on the expected market share of XRP in th
  6. Your thought on this question is already very insightful. Thank you very much for sharing your opinion. Yes, I also look forward to hearing someone else's opinion.
  7. First of all, thank you very much for elaborating great answers. As I do not have a background in economics, I am slightly confusing about this equation. From my internet search, T represents the output of economy, e.g., real GDP. If we imagine the global economy is equivalent to one factory producing TVs, P is a TV price and T is a number of TVs produced in the factory. So, I am not clear how T is interpreted as 'transactions' in the XRP economy. I interpreted this as T increases steeper than does V, because it mentioned that only T sharply increases. If so, isn't P decreasi
  8. Thank you for the reply. I agree with this statement. While I can understand this statement in an abstract term, I cannot think of any detailed examples.
  9. Yes, I agree. This is the power of speculation. However, at this time, I would like to open a discussion about the appreciation of XRP in terms of its use cases. As I mentioned in (2) in the original posting, with the current XRP market cap to 10 billion dollars, 10 billion dollars must be transferred all the time on xRapid as xRapid instantly sells and buys XRP. I wonder if in any chance XRP can be used for Nostro and Vostro accounts in other Ripple products (such as xCurrent). I seems to clear that xRapid do not need such accounts.
  10. Yes, it is what I understand about xRapid. If XRP has a chance to be used for Nostro/Vostro accounts, it is a good stimulus for increasing the XRP value. However, as you commented, xRapid removes the needs of Nostro/Vostro accounts. Is there a chance that XRP can be used for these accounts for other products from Ripple (e.g., xCurrent)?
  11. Thank you for the reply. What do you mean that not every XRP is available to trade?
  12. Thank you for the comment. Your comment seems to be my concern in (2), i.e., "the current marketcap of XRP is about 10 billion dollars. So, the XRP price would not go up if the transaction volume at any given moment is not consistently over 10 billion." In short, if the global demand from 100 or more institutions is kept over 10 billion dollars all the time, then XRP price would go up. Otherwise, it seems to be unclear how xRapid will appreciate the XRP price.
  13. Thank you for the link. It is a great help. The first part of the article explains that if banks buy XRP at $1.00 and later XRP is depreciated to $0.80, then banks will buy another pile of XRP at $0.80 for transactions required at this time, and do not touch their initial buying at $1.00 until XRP bounces back to $1.00. This mechanism sounds very risky because no one can guarantee that XRP will bounce back to $1.00. For example, in 2018, XRP has depreciated for 80%-90%. So, if banks bought XRP in the early 2018 at $3.5, they made a great loss without knowing whether and when they ca
  14. Thank you for the reply. I wonder if XRP can be used for nostro and vostro accounts in Ripple products. xRapid does not seem to need these account, as buying/selling XRP for xRapid is near instant. So, did you mean nostro and vostro accounts for xCurrent or something else?
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