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galgitron

The Myth of Market Cap

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@Sebastian 

 

@RegalChicken

I think a lot of the controversy surrounding this post is from the tangential unintended assumptions that arose.  First, if you read it carefully, I do not suggest whatsoever that we 'are' going to get to those super highs, just that there's no reason we can't, but without actually reading the entire document to fully comprehend the author's intent, people get their panties in a bunch when someone starts throwing fantastic figures out there .  For example, right here I'll state "$1000 per XRP" with absolutely no context, yet watch the knuckleheads flip out and assault me; it's like I lit up a fly-zapper and they can't help flying into it.  And don't even get me started about that other twit that shall remain unnamed, I'll never get those minutes back.

It may be we never get back above 20 cents.  I doubt it, just like I also doubt we'll see $1 in the near future, but who knows.  I don't know, and won't ever pretend to (except in the Gospel Hour club where I will give you exact figures and dates upon demand).

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On 06/10/2017 at 6:47 PM, galgitron said:

ADOPTION: Imagine when people, businesses, governments even, stop always converting back to fiat and just staying in XRP.  This becomes the 'currency flight' turning point, and valuation will go into the hundreds to billions (DIVIDED by the number of utilized coins).  Multiple dollars per coin.

One issue I see with this is that currency represents the trust of a governments economy and ability for that governent to pay its debt.  As each country is different currencies have differing values.  XRP could not replace currency as all XRP has to hold the same value.

To replace currency and thus a government's debt with XRP could only be possible by providing different amounts of XRP to governments.  Gold will still rule as it will never be replaced as a store of value by governments.  How would you then differentiate between different currency if everyone has XRP?

Suppose this, what if all banks adopt the software and principle of Ripple but creates their own currency such as GBPD  = Great British Pounds Digital.

Ripple either runs and manages the system and charges a fee or licenses out the system for banks to adopt and make their own.  That would make XRP an equivalent to a share in a company, whose price would be based on the revenues of Ripple.  Then the value of 1 XRP would be valued the same way as shares are today.

Then governments would create x amount of XRP to represent the XRP to Local Currency conversion.This could also mean that a government creates more XRP the same way money is printed, just would be cheaper. We would then have a digital fiat currency and BTC, ETH, LTC would still be considered as a true store of value unmaniplated by governments. I dont see governments caring too much as they can place a tax on its sale like gold and silver and treated in the same mannger.

Could this be a possibility or am I wildly off the mark?

 

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2 hours ago, reas said:

One issue I see with this is that currency represents the trust of a governments economy and ability for that governent to pay its debt.  As each country is different currencies have differing values.  XRP could not replace currency as all XRP has to hold the same value.

I was too vague, what I was saying is that big businesses and governments would probably initially use XRP as a bridge currency, in and out, but not holding any XRP.  My point was that this may change to actually holding XRP as a store of value; but that doesn't mean they will replace fiat.  This would allow them to benefit from XRP bridging without the conversion from fiat to XRP fees.  Fiat isn't going anywhere.  No country wants to lose control of its internal economics (aka, printing money).  And Brexit proves that there will never be a single-currency world

Edited by galgitron

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4 hours ago, galgitron said:

I was too vague, what I was saying is that big businesses and governments would probably initially use XRP as a bridge currency, in and out, but not holding any XRP.  My point was that this may change to actually holding XRP as a store of value; but that doesn't mean they will replace fiat.  This would allow them to benefit from XRP bridging without the conversion from fiat to XRP fees.  Fiat isn't going anywhere.  No country wants to lose control of its internal economics (aka, printing money).  And Brexit proves that there will never be a single-currency world

Good Point there @galgitron sir Likealot. :thank_you2:

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if a certain % of FX trades inside the network are done against XRP it makes sense to hold roughly that % of the total value of reserve funds as XRP since you can exchange it for the other currencies you may need at half the spread rather than the full spread. That will tie up some of the XRP (it's also where the argument about XRP velocity = 10000 per day falls apart).

 

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Quote

ADOPTION: Imagine when people, businesses, governments even, stop always converting back to fiat and just staying in XRP.  This becomes the 'currency flight' turning point, and valuation will go into the hundreds to billions (DIVIDED by the number of utilized coins).  Multiple dollars per coin.

I stopped at this moment,  i suggest you to take and read an economy 101 book because what you are saying here is really ridiculous...

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6 hours ago, thisisme said:

I stopped at this moment,  i suggest you to take and read an economy 101 book because what you are saying here is really ridiculous...

Lol, you're absolutely right @thisisme.  Thank Jesus you pointed out in one poignant sentence just how stupid I am.  I'll be sure to immediately follow your advice and edumacate myself.

 

OR

 

Why don't you take a risk and actually state what's wrong with my statement and back up what you're trying to bully me with.  Or are you scared. .

 

Edit:  still waiting for my beating...  Or was this just a troll-and-run?  (Troll-by shooting?)

Edited by galgitron

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On 19/11/2017 at 9:06 AM, RegalChicken said:

To them I'd say look at the market cap increase in the past month from $160bil to today's $230+bil.

Crypto has grown nearly 50% in the last month. Somewhat quietly, really. It just keeps trucking along. 

One thing to be careful of is that sometimes people think the market cap grew by X which means X dollars flew in.  

So in the case above you might tend to think that $70billion came into the market. 

Probably our NoblePoultry friend didn't think that...   but some readers might.  

In fact all things being equal,  it does mean new money did come in but not 70 biguns.  

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29 minutes ago, Eric123 said:

@galgitron I don't think market cap is a myth and I don't think you dispelled anything.  The maximum price of an XRP is not infinity.  

Yes it is infinity, because XRP's full potential is to become the only currency in the world.  Not saying that's going to happen any time soon, or will definitely happen, but as fiat becomes less and less valuable relative to XRP, fiat's value will trend to zero, making the exchange rate from XRP equal to infinity.  Bitcoin is already setting this example by replacing the Venezuelan Bolivar.  The trading pair for Bolivar to XRP is approaching infinity.  The same can happen for the US Dollar.  Yes it can..   Yes it can..

 

Yes it can..

Edited by galgitron

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13 minutes ago, galgitron said:

Yes it is infinity, because XRP's full potential is to become the only currency in the world.  Not saying that's going to happen any time soon, or will definitely happen, but as fiat becomes less and less valuable relative to XRP, fiat's value will trend to zero, making the exchange rate from XRP equal to infinity.  Bitcoin is already setting this example by replacing the Venezuelan Bolivar.  The trading pair for Bolivar to XRP is approaching infinity.  The same can happen for the US Dollar.  Yes it can..   Yes it can..

 

Yes it can..

Hope in real life you listen to other's advices because it's clearly not the case here when i suggest you to get some economic 101 course i wasn't insulting you it was an advice.

But since you don't listen to people's advice you can read some answer to "why every country  has its own currency", with answers that even a baby can understand https://www.quora.com/Why-did-every-country-have-its-own-currency 

So no unless you believe in illuminati and one government that rules the world,  XRP or any other coin/currency will never be an universal coin, even gravity it's not the same across the globe...

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@galgitron I posted a link to a video on another thread from a financials person who raises interesting points on valuation. She throws into the mix the nature of QE, the inverted yield curves we are seeing across all asset classes, and in particular the insanity of the risk:yield proportionality turned on its head.

Thanks to global QE, no one knows what value means. There are assets trading at ridiculous price to yield ratios because there is too much cash and everyone is desperately trying to put their money into anything that might give a return.

Once QE comes home to roost, yikes. Going to be a wild scramble. I think xrp might capture that interest once it threatens to make conventional forex obsolete.

But I could be wrong.

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1 hour ago, thisisme said:

Hope in real life you listen to other's advices because it's clearly not the case here when i suggest you to get some economic 101 course i wasn't insulting you it was an advice.

But since you don't listen to people's advice you can read some answer to "why every country  has its own currency", with answers that even a baby can understand https://www.quora.com/Why-did-every-country-have-its-own-currency 

So no unless you believe in illuminati and one government that rules the world,  XRP or any other coin/currency will never be an universal coin, even gravity it's not the same across the globe...

Lol.. oh man, where do you people come from...  first off, usage of 101 and baby is straightforward, not even trying to be obscure, directly attempting to insult me.  You're obviously young and insecure, coping with the pressures of puberty, so it'd be difficult to take any offence to your random jabs as I'm probably yet one more person in a long long line of people that you spit at trying to make yourself visible in this world, otherwise nobody would know you exist all alone in your bedroom. 

That being said, your initial cowardly troll-and-run was unfortunate for you because I clarified just a few posts prior that fiat isn't going anywhere (which I had to surmise was your point given you just spat at me and ran like a coward), because countries want to control their own economic policies (hence Brexit), so yes, in the near and forseeable future, fiat is here to stay.  However, the present political structure of the globe is but one stage of mankind's economic evolution.  Who's to say that government's don't eventually succumb to every anarchist's wet dream of a Bitcoin universe, and they go bankrupt?  It can happen.  It's happening in Venezuela.  Right now.  You can read about it in economics 102.

Edited by galgitron

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