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ajvb00

Theory - Could Ripple Be The Main Cryptocurrency?

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Ripple's transaction costs are virtually nothing compared to credit/debit fees. Let's say the fees were as low as 20 cents per transaction...

TRANSACTION COST - 0.00001 XRP

CURRENT PRICE (1 RIPPLE/XRP) = $1.95

MEANING 0.00001 XRP = $0.00000195

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If 1 Ripple = $100 

TRANSACTION COST - 0.00001 XRP

MEANING 0.00001 XRP = $0.0001000 

These are ridiculously low compared to regular fees we use today.

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Transaction costs only change when there is an unusually high load.

Ripple current market cap is also at #2 in cryptocurrencies at $87,306,798,133. XRP current price is listed at $2.25. The reason the market cap is so high is because of the big supply of 38,739,144,847 XRP.

Bitcoin's market cap is currently $16,775,262 while 1 BTC is $13,834.40 and other cryptocurrencies have small market caps with high prices like BTC also.

This means that only big masses can quickly fluctuate the price of XRP due to the gigantic market. Unlike the other currencies where smaller amounts of people can impact the price quickly

When XRP is stable within the next few months after the people waiting for transactions from coinbase etc. It has a chance at being the top, most-stable currency behind FIAT (Not saying it will replace FIAT, but Ripple is doing things here). It can be used to make FIAT transactions much quicker and reduce costs for everyone.

My reason of giving XRP at $100 as an example is because that's what I realistically I think it can reach with a lot of hype. If it gets very mainstream it can be a totally different story we all know you can't predict what goes on. It can easily hit higher prices and be just as stable.

XRP transactions per second  = 1500

BTC transactions per second = 3.3-7 (according to wiki, even if at 200, XRP is way way faster, this is the same for other cryptocurrencies)

A very good point at why Ripple will be successful.

This is completely theoretical from a couple minutes of thought that my brother initiated. Just wanted to share. Give some input!

 

EDIT: If you read this early read it again, had a few typos lol.

Edited by ajvb00

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4 minutes ago, buttons said:

there is one part on Hodor's article saying an off ledger can achieve 70,000 TPS :)

I was actually just reading about this! The TPS can scale.

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1 minute ago, robertbruce said:

fmd, yerr that's showing the satoshi ideal isn't it...

Compared to Ripple's transaction system, Bitcoin's mining system isn't efficient at all.

Edited by ajvb00

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there is one thing which I have a concern with. Lets assume Ripple should become a dominating worldwide crypto currency and compared to BTC it has a real use case (the ones we all know). Then the 50'000 Transactions per Second Ripple is referring on its web-page will just not be enough to manage global transactions happening and there will be also substantial backlogs simmilar to BTC today....

Is this a valid conern or do I miss a piece of the puzzle here?

 

 

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13 minutes ago, Docsam said:

there is one thing which I have a concern with. Lets assume Ripple should become a dominating worldwide crypto currency and compared to BTC it has a real use case (the ones we all know). Then the 50'000 Transactions per Second Ripple is referring on its web-page will just not be enough to manage global transactions happening and there will be also substantial backlogs simmilar to BTC today....

Is this a valid conern or do I miss a piece of the puzzle here?

 

 

VISA only needs to handle ~1700 TPS.

It's capable of more but that's all that is asked of it. I think 50k would be fine.

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2 hours ago, JustinS said:

Very much inevitable now.  Bitcoin is to Ripple what Cassettes were to CDs.  So there's still plenty of room for future growth and not sitting back whilst technology moves forward into the future.

So then what's the MP3 player? 

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28 minutes ago, Docsam said:

there is one thing which I have a concern with. Lets assume Ripple should become a dominating worldwide crypto currency and compared to BTC it has a real use case (the ones we all know). Then the 50'000 Transactions per Second Ripple is referring on its web-page will just not be enough to manage global transactions happening and there will be also substantial backlogs simmilar to BTC today....

Is this a valid conern or do I miss a piece of the puzzle here?

 

 

  Certainly better than 6 per minute.  

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5 hours ago, Docsam said:

there is one thing which I have a concern with. Lets assume Ripple should become a dominating worldwide crypto currency and compared to BTC it has a real use case (the ones we all know). Then the 50'000 Transactions per Second Ripple is referring on its web-page will just not be enough to manage global transactions happening and there will be also substantial backlogs simmilar to BTC today....

Is this a valid conern or do I miss a piece of the puzzle here?

 

 

RippleNet is 1500 TPS on-ledger currently.

However it is designed to scale horizontally.

Therefore additional volume can be added proportionally per given cost.

Therefore this is not a concern.

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15 hours ago, ProfMoriarty said:

RippleNet is 1500 TPS on-ledger currently.

However it is designed to scale horizontally.

Therefore additional volume can be added proportionally per given cost.

Therefore this is not a concern.

ok, thanks for the explanation. I didn't find any information how it actually can scale up capacity/volume...

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