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panmores

Interesting thought: the higher XRP value, the easier for banks

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I personally don't see why a more expensive XRP would make it easier. A higher price would only mean a bank would have to purchase less XRP, wouldn't it? 

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6 minutes ago, Danny said:

I personally don't see why a more expensive XRP would make it easier. A higher price would only mean a bank would have to purchase less XRP, wouldn't it? 

It's easier cause you need to own less XRP relative to the total amount of XRP available to move money around.

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It has been mentioned a lot of times.

 

the more value XRP has, the less of them is needed for transfering large amounts of money!!!!

Exp: 

1$ worth 1 xrp....you need 1xrp to transfer 1$

100$ worth 1xrp....you need 0,01 xrp to xfer 1$

 

 

 

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1 minute ago, mambli said:

It has been mentioned a lot of times.

 

the more value XRP has, the less of them is needed for transfering large amounts of money!!!!

Exp: 

1$ worth 1 xrp....you need 1xrp to transfer 1$

100$ worth 1xrp....you need 0,01 xrp to xfer 1$

 

 

 

But this only matter cause the supply is finite. If it were infinite, it wouldn't really matter how many xrp you need to transfer one $.

Look one dollar is valued at 1$ and yet it can move around gazillions a day. But it's mostly cause the total amount in circulation is close to infinite.

That's why XRP needs to be valued way higher.

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4 minutes ago, Boblemoche said:

Amazing ! A random dude, tweeting a random price. I am sure the market will agree in an instant and next time I check XRP/USD will be at 100$...

Can I check now ? Or will I be disappointed like 99% of the days in 2018 ?

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Posted (edited)
41 minutes ago, zerpdigger said:

what has this forum become

I beg your pardon?

One can mind the tweet's proper use of English, yet the point made is valid and deserves to be discussed. It's not about a $100 value or whatever, question is whether a higher-valued XRP is in the interest of banks.

Edited by panmores

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1 hour ago, panmores said:

 

No. disagree. it's not the price of one xrp which will determine how easy it is to transfer. Transferring 1 or 1 million does not make a difference as long as doing so does not affect the price.

It is liquidity which will determine how easy it is to transfer i.e.

From Investopedia:

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Market liquidity refers to the extent to which a market, such as a country's stock market or a city's real estate market, allows assets to be bought and sold at stable prices.

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If the banks need to buy XRP to facilitate their cross border payments via XRapid, then isn’t that the same as having Nostro/Vostro accounts just not in Fiat? It’s still large amounts of capital held and not investable. What do you think about this? Suppose that the banks will get their money back from nostro/vostro accounts , but they also need to buy XRP. So isn't this the same thing ? (taking money from left pocket and put them into right pocket).

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5 minutes ago, noucktourno said:

If the banks need to buy XRP to facilitate their cross border payments via XRapid, then isn’t that the same as having Nostro/Vostro accounts just not in Fiat? It’s still large amounts of capital held and not investable. What do you think about this? Suppose that the banks will get their money back from nostro/vostro accounts , but they also need to buy XRP. So isn't this the same thing ? (taking money from left pocket and put them into right pocket).

As far as I understand, they buy XRP with the sending currency and sell it again a few seconds later in the receiving currency. Hence not having to actually hold any.

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