Why the price of XRP has almost NOTHING to do with utility

[2ndtimearound]

12 hours ago, Worldcryptoboss said:

Why are we not using Bitcoin in everyday transactions? How many people are actually USING bitcoin as opposed to investing purely as a store of value? The percentage of people who actually use Bitcoin has increased, but is still significantly ,minute to the point where less than .01% of the world's population has used Bitcoin as anything BUT a store of value. Meanwhile, the price of Bitcoin has skyrocketed astronomically while it's utility, in real world terms, has stagnated. 

Secondly, I'll repeat again that just because Ripple is a great conduit for financial transactions does NOT mean that it will be adopted en mass by worldwide financial organizations.

Why do you keep conflating Bitcoin with XRP?

Let me try...."XRP can't succeed because do you remember how expensive BTC was to transact in the last bull-run, and how slow it can be? Therefore, banks will never adopt XRP". 

[Guest]

Have you ever seen XRapid usage of XRP in significant and increasing volume?

Do you know what the effect of programmatic trading along corridors with market making arbitrage back will be like?

I don’t.  

But you seem happy to discount all that even though it is a totally new,  and never before seen thing.  

Ripple have almost certainly modelled it and they seem quietly confident.

Smart market types here and elsewhere seem to think the asymmetric buys/sells in large volume will increase demand and price.  

Yet you seem sublimely sure they are totally wrong based on experience of an immature market before all this has begun.

We will see.  I’m betting you are wrong.  

[2ndtimearound]

44 minutes ago, Tinyaccount said:

Have you ever seen XRapid usage of XRP in significant and increasing volume?

Do you know what the effect of programmatic trading along corridors with market making arbitrage back will be like?

I don’t.  

But you seem happy to discount all that even though it is a totally new,  and never before seen thing.  

Ripple have almost certainly modelled it and they seem quietly confident.

Smart market types here and elsewhere seem to think the asymmetric buys/sells in large volume will increase demand and price.  

Yet you seem sublimely sure they are totally wrong based on experience of an immature market before all this has begun.

We will see.  I’m betting you are wrong.  

But .....but....Bitcoin is slow and expensive, therefore XRP can't work....!

[Flying-Dutchman]

JoelKatz gave a good explanation of the expected price development of XRP on 25 May 2017.
If you read the posting well, his expectation is correct with the developments as they unfold now in August 2018. With the roll-out of Xrapid, the demand for XRP will also increase and that will probably have a price-increasing effect.
 

Joel Katz - XRP valuation models

[2ndtimearound]

To be fair 95% of posts made on this forum are borne out of needless impatience.  "Because the price isn't mooning, XRP is rubbish" - they don't fully appreciate how long it takes for this tech to unfold, and how LUCKY we are that we are here now.  All it takes is patience - literally, to do nothing but wait.

[Guest]

1 hour ago, 2ndtimearound said:

To be fair 95% of posts made on this forum are borne out of needless impatience.  "Because the price isn't mooning, XRP is rubbish" - they don't fully appreciate how long it takes for this tech to unfold, and how LUCKY we are that we are here now.  All it takes is patience - literally, to do nothing but wait.

I was just about to write a reply based on what you said! I don’t get why people invest in something, then get impatient and hate on it, are they looking for reassurance? Maybe? IF not just sell and be gone!

[n2it]

There's a time to act, and a time to wait. Crawl, walk, run, remember?

xRapid is not even at production release now. Custodial solutions are in the pipeline, but also not live yet. Liquidity is improving, but still has a way to go. Institutions are waiting for all of these infrastructure components to be in place before entering the market.

IMHO, it's time to wait. Unless there's another dip to buy

[RipplePiercing]

10 minutes ago, n2it said:

There's a time to act, and a time to wait. Crawl, walk, run, remember?

xRapid is not even at production release now. Custodial solutions are in the pipeline, but also not live yet. Liquidity is improving, but still has a way to go. Institutions are waiting for all of these infrastructure components to be in place before entering the market.

IMHO, it's time to wait. Unless there's another dip to buy

Completely agree... I believe there may be another dip coming following the few ETF funds which will (potentially) be declined... Leading to a drop before XRapid production... 

[Eric123]

23 hours ago, Worldcryptoboss said:

The price of XRP has almost NOTHING to do with it's utility. 

No not really.  If you know how XRP works - For XRP to be useful as a bridge currency it by necessity needs a high value.  If XRP is not worth enough there will not be enough utility in the system to complete any transfers.  How could one bank transfer $100 million to another bank if that is worth more than all the XRP available to be traded???  XRP needs liquidity to be of any use to Ripple - for XRP to have liquidity it needs a high price.  

[Worldcryptoboss]

9 hours ago, 2ndtimearound said:

To be fair 95% of posts made on this forum are borne out of needless impatience.  "Because the price isn't mooning, XRP is rubbish" - they don't fully appreciate how long it takes for this tech to unfold, and how LUCKY we are that we are here now.  All it takes is patience - literally, to do nothing but wait.

It's unfortunate that me pointing out that because XRP's price is not tied to it's utility that automatically means that I'm saying that XRP, and RIpple, is somehow rubbish. 

It's also curious that because I've pointed out one aspect of the investment strategy, it suddenly means that I have no appreciation of the time it takes for these assets to appreciate.

Make no mistake, I think XRP, and all the products coming out of Ripple, are fantastic products. 

Also, I have no doubt in my mind that XRP will significantly appreciate in value within the short to medium term (long term is difficult to say as it depends on how the US and other major governments will decide to regulate crypto)

But based on THE HARD DATA looking at cryptocurrency trends over the past DECADE, it's quite obvious that the utility of cryptocurrencies has had very little to do with their price. And any opinion that xRapid, or any other technology using the Ripple network, will have any major impact on the price of XRP is not supported by data/fact, but more wishful thinking and conjecture SO FAR. 

Could that change in the future? Quite possibly. But until then, XRP and other crypto prices will be pushed more by hype, demand, and the rise and fall of Bitcoin than by any utility that they may offer.

[Worldcryptoboss]

6 hours ago, Eric123 said:

No not really.  If you know how XRP works - For XRP to be useful as a bridge currency it by necessity needs a high value.  If XRP is not worth enough there will not be enough utility in the system to complete any transfers.  How could one bank transfer $100 million to another bank if that is worth more than all the XRP available to be traded???  XRP needs liquidity to be of any use to Ripple - for XRP to have liquidity it needs a high price.  

Do you have any proof of that being true? And what range are you speaking about when you say that it has to be a "high value"? Not sure that I necessarily agree. 

XRP being liquid and XRP being a "high value" are not one and the same. 

In fact, XRP could be just as useful NOW as it is at $100. There's no real need for it to be "high value", and I'd argue that Ripple could be quite successful even if XRP never increased 1 more cent in value 

[Worldcryptoboss]

6 hours ago, n2it said:

There's a time to act, and a time to wait. Crawl, walk, run, remember?

xRapid is not even at production release now. Custodial solutions are in the pipeline, but also not live yet. Liquidity is improving, but still has a way to go. Institutions are waiting for all of these infrastructure components to be in place before entering the market.

IMHO, it's time to wait. Unless there's another dip to buy

I'm looking forward to buying myself - at the very least twice this year - once now, and again after the ETF most likely is declined

[Worldcryptoboss]

8 hours ago, Zerpinator said:

I was just about to write a reply based on what you said! I don’t get why people invest in something, then get impatient and hate on it, are they looking for reassurance? Maybe? IF not just sell and be gone!

I love XRP, Ripple, own some myself, and will definitely be buying more over the coming months. Definitely will not be selling for at least another 2-3 years.

Don't misconstrue me pointing out a fact to me somehow "hating" on Ripple!

[Worldcryptoboss]

11 hours ago, 2ndtimearound said:

Why do you keep conflating Bitcoin with XRP?

Let me try...."XRP can't succeed because do you remember how expensive BTC was to transact in the last bull-run, and how slow it can be? Therefore, banks will never adopt XRP". 

Firstly, I'm not conflating the two. However, it is undeniable that THE biggest predictor of the price of XRP, and other Cryptocurrencies, is how well (or badly) Bitcoin is doing.While this MAY change in the medium to long term, it's highly unlikely it will change in the short term. 

Secondly, the success of XRP is not necessarily tied only to it's price

 

[Worldcryptoboss]

13 hours ago, OzAlphaWolf said:

Then you should sell XRP (assuming you have any), invest all your crypto money into BTC and go bother their forums. We don't care. We're here for a journey that will demonstrate BTC to be as significant as yesterday's fart.

If I'm bothering you perhaps you should re read, very carefully, what I've said.

I believe that XRP, more than any other coin, has the best use case, and the best likelihood of international adoption. 

I also believe that for the short term (12-24 months) XRP will be the coin that performs the best.

 

I just DON"T believe that people realise that there are other markers for measuring it's possible success outside of utility, and that's a major blindspot. 

 

Also if I'm bothering you, I don't care