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Does Ripple Want The Price of XRP High?

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20 minutes ago, mDuo13 said:

Even if most if it is locked away in escrow for a while, Ripple has over 55 billion XRP in assets. Of course the company wants XRP to go up in value.

Think about it. XRP was worth USD $0.0064 at this time last year, per CoinMarketCap. Now it's $1.08. The company's assets went from being worth ~$350 million to being worth almost $60 billion in one year. That's a lot of value for shareholders, employees, early investors, and the future of the company. Think of how many more employees Ripple can hire, or how many more promotions Ripple can hold to increase adoption and spread of XRP with those assets.

At this rate¹, the internet of value will pay for itself.

 

¹For the record, I strongly believe that "this rate" is an unsustainable bubble. I'm not sure where we'll be when it bursts, but Ripple has strong fundamentals so we're going to keep working on increasing the spread and utility of XRP. It sure makes it harder to plan a sustainable business model when the market is highly volatile, though.

Thanks for the insight @mDuo13

As a thought experiment, would it make sense to posit that if the bubble pops at a point that xRapid is being widely (or moderately) used, that XRP would be stable(ish) due to it's utility and xRapid's volume?

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32 minutes ago, mDuo13 said:

Even if most if it is locked away in escrow for a while, Ripple has over 55 billion XRP in assets. Of course the company wants XRP to go up in value.

Think about it. XRP was worth USD $0.0064 at this time last year, per CoinMarketCap. Now it's $1.08. The company's assets went from being worth ~$350 million to being worth almost $60 billion in one year. That's a lot of value for shareholders, employees, early investors, and the future of the company. Think of how many more employees Ripple can hire, or how many more promotions Ripple can hold to increase adoption and spread of XRP with those assets.

At this rate¹, the internet of value will pay for itself.

 

¹For the record, I strongly believe that "this rate" is an unsustainable bubble. I'm not sure where we'll be when it bursts, but Ripple has strong fundamentals so we're going to keep working on increasing the spread and utility of XRP. It sure makes it harder to plan a sustainable business model when the market is highly volatile, though.

Xrp is the only Crypto that can survive the bubble because it has a use case

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1 hour ago, rowling said:

Xrp is the only Crypto that can survive the bubble because it has a use case

except it doesn't have a *necessary* use case

financial institutions can use a different more liquid and stable currency and still completely benefit from ripple's blockchain tech

https://multicoin.capital/2017/12/20/bear-case-xrp-bitcoin-futures-edition/

 

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Of course they want the price of XRP as high as possible. That's basically analogous to asking if Ripple wants their marketcap as high as possible.  In short, everybody invested in XRP wins, but then there's the issue of a stable price for XRP's optimum utility - that's a different story, but fortunately with high price, high volume, and high liquidity should come high price stability.

Edited by enrique11

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8 minutes ago, bananas said:

except it doesn't have a *necessary* use case

financial institutions can use a different more liquid and stable currency and still completely benefit from ripple's blockchain tech

https://multicoin.capital/2017/12/20/bear-case-xrp-bitcoin-futures-edition/

 

Yes it does. Saves banks and institutions more money than ripple platform. So YES. It's just a matter of time they'll all use xrp.

Brand new account joins to spread FUD between people who know ins and outs of Ripple. This ain't no reddit son

Edited by rowling

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1 hour ago, nav said:

Thanks for the insight @mDuo13

As a thought experiment, would it make sense to posit that if the bubble pops at a point that xRapid is being widely (or moderately) used, that XRP would be stable(ish) due to it's utility and xRapid's volume?

The answer is "probably yes." This isn't specific to xRapid, but it's a general principle:

The more liquidity a currency market has, the more orders for greater amounts at prices near the market price. That means that the market can accommodate greater variations in supply and demand with smaller shifts in price. Fundamentals will still move the market, but only at the rate that traders (and their bots) are comfortable adjusting their existing offers.

Put another way, price shifts occur in two ways:

  • People's evaluation of the future value for one side or another of the market changes, so they withdraw their orders and issue new ones
  • Uneven demand consumes orders mostly on one side, or uneven supply undercuts orders mostly on one side

That second case happens much more slowly when the order books are deeper (there are more orders to consume/undercut). Ripple hopes that when xRapid funnels lots of volume through the market, it'll incentivize more people to join the market, making the books deeper. On the other hand, the short-term effect of more volume is to consume that liquidity, making the order books shallower, so it'll only happen if people respond rationally to the increased volume by engaging in more trading.

Or something like that.

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Really appreciate your response @mDuo13. I could only formulate a basic understanding of the principles behind that belief, and you broke it down in a much deeper way that I could understand it.

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3 hours ago, rowling said:

Yes it does. Saves banks and institutions more money than ripple platform. So YES. It's just a matter of time they'll all use xrp.

Brand new account joins to spread FUD between people who know ins and outs of Ripple. This ain't no reddit son

Did you read the article? Do you understand Ripple's technology? 

It's clear that a bank/company does not have to use any meaningful amount of XRP to get the full benefits of the technology.

It is hard to judge if, assuming Ripple is adopted at meaningful scale globally (recent trends look good), banks/companies will use XRP or instead use another digital currency (BTC or digital fiat perhaps) that is more liquid and has a more stable value.

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