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Barrier of Entry (and what it means for current investors)


Plato
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In my mind crypto thing and XRP are going to be HUGE in the long run. 100% sure.

But your story points out something.. Not everyone thinks like me (or us). Maybe the critical mass for adoption is still too high. There is no demand, so there are no providers. There are no providers because there isn't enough demand.

Maybe the common people started crypto.. the institutional investors come next... and after that, the herd will follow through traditional investing paths.

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As someone outside of the "bigger countries" it has been ridiculously difficult to purchase XRP, and crypto in general. 

I have had to resort to paying DOUBLE on a site to purchase. I now go through a friend who buys and then transfers. 

While is may be relatively easy for those based in North America/Europe/certain Asian countries, there's still 75% of the population who lives outside of that where buying crypto is next to impossible

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11 minutes ago, Skippy said:

In my mind crypto thing and XRP are going to be HUGE in the long run. 100% sure.

But your story points out something.. Not everyone thinks like me (or us). Maybe the critical mass for adoption is still too high. There is no demand, so there are no providers. There are no providers because there isn't enough demand.

Maybe the common people started crypto.. the institutional investors come next... and after that, the herd will follow through traditional investing paths.

2018 price crash killed retail FOMO energy...infrastructure has matured but still basically nascent...i think there are going to be several more waves (high then crash) before utility driven component of price is achieved and sustained...its long game and we're in early imo

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5 minutes ago, xrpmeplease said:

2018 price crash killed retail FOMO energy...infrastructure has matured but still basically nascent...i think there are going to be several more waves (high then crash) before utility driven component of price is achieved and sustained...its long game and we're in early imo

yes, and I am too biased to trade the waves.

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It's hard to disagree with the OP. Friends have told me that they won't buy until it's as easy as buying stock. I've told them the problem with doing so is that the prices of crypto will be exponentially higher, but they're still not budging.  It also doesn't help that exchanges have a reputation of not being secure. 

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From a human, consumer point of view :  The old system is still in place and will be there for a very 'long' time, simple ... it works.

On a small scale for me a as a consumer with a bank account no problemo now I can order my pizza ... So whats all the fuzz about cryptos...
And never ever trust something which is totally unpredictable and volatile .... 

Why use cryptos when I already can pay with real money! so I first have to exchange my salary into cryptos to buy stuff ... but nobody sells products and charge cryptos ...
Currently there's no application on the human global scale, which will hold people from investing or ...

As we speak there are no daily benefits in using cryptos, we have (digi)cash already ... you swipe your credit-card, mobile-payment, etc...you simple look into your bank-app.
Banks, government will inevitably control our cash flow, there;s too much at risk.

If I was a big global major bank I would give increased/high interest rates of 5% on your cryptos if you would open up a crypto-account.
This is when everyday Joe starts thinking: "More free money"... this is when business owner start thinking ... "makes sense to move some of my cash"
 

 

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1 hour ago, jesperrekuh said:

From a human, consumer point of view :  The old system is still in place and will be there for a very 'long' time, simple ... it works.

On a small scale for me a as a consumer with a bank account no problemo now I can order my pizza ... So whats all the fuzz about cryptos...
And never ever trust something which is totally unpredictable and volatile .... 

Why use cryptos when I already can pay with real money! so I first have to exchange my salary into cryptos to buy stuff ... but nobody sells products and charge cryptos ...
Currently there's no application on the human global scale, which will hold people from investing or ...

As we speak there are no daily benefits in using cryptos, we have (digi)cash already ... you swipe your credit-card, mobile-payment, etc...you simple look into your bank-app.
Banks, government will inevitably control our cash flow, there;s too much at risk.

If I was a big global major bank I would give increased/high interest rates of 5% on your cryptos if you would open up a crypto-account.
This is when everyday Joe starts thinking: "More free money"... this is when business owner start thinking ... "makes sense to move some of my cash"
 

 

Bruhhh....

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3 hours ago, Plato said:

I recently read a post regarding the sale of cryptocurrency on marketplaces such as eBay. Specifically, the poster linked to a post: $25 for 25 XRP (roughly). 

This has been happening for quite some time. But what does this mean?

This, I believe, proves a very important point: Crypto is especially hard to secure for the common person. Thus, a person is willing to pay a 3X markup to purchase the currency in such a simplified manner, so as to evade the painstaking purchasing process. 

While this point has been raised previously, I believe it is an often overlooked topic in regards to current price. The importance of barrier of entry--and obstacles in securing crypto--are vastly understated, in my opinion, when discussing price and valuation. 

Perhaps you, like me, have forgotten about our first foray into purchasing crypto. But, as I reflect on my experience, I remember these things:

1. Relentlessly Googling "Ripple", "Cryptocurrency", "Exchange", "Bitstamp", "Binance", "Crypto taxes", "What's a cold wallet?", etc. 

2. Attempting to get verified. 2 weeks for Binance; 7 months for Bitstamp (although these time frames have decreased, I believe).

3. Sending pictures of my license and other very sensitive personal information to a German-based cryptocurrency exchange. 

4. Grasping the concept of fund transference between an exchange and a "wallet". 

5. Waiting and waiting and waiting for money to clear in Coinbase. 

6. Understanding how to buy ETH/BTC/LTC, transfer to exchange, purchase XRP, then transfer to wallet. 

 

My point is this: It's extremely overwhelming and intimidating. Just the process itself. Now, try to complete a process while surrendering personal information... and your precious fiat.

Barrier of entry, lack of perceived security, etc. These are the primary reasons for a minimal number of entrants and potential investors. Which is reason for less liquidity. 

There are very, very few people truly invested in XRP (or most any other crypto, for that matter). Mostly because the process is painstaking. If the process was simpler, and was perceived as being safer, the total market cap for crypto would be very, very high (I believe).

The counterpoint is: XRP's liquidity should mostly be rooted in banks/financial institutions. Sure, this is true. However, immense liquidity would require consumer investment. Consumer buy-in. Right now, the majority of people don't understand cryptocurrency, and they have no idea what XRP is about. Those who are aware of the crypto space and do understand what Ripple is about... Well, most of them haven't fully invested, or they haven't invested at all. Why? Barrier of entry. 

These are early, early days. We are just at the beginning. Nowhere near mainstream. Last winter's ride to $3+ was a small "ripple" in the cryptosphere. Such a rise will become a pinprick on our timeline in 5-10 years. 

Interest is high. Demand is, already, moderate. Supply is there, but very, very hard to access. 

 

Just my two zerps. 

I purchase on EToro.  It happened quickly and I paid through my CC and Paypal.  I do not physically own the coins yet but EToro do buy the coins when I invest and store them for me.  They have promised a wallet for the coins but it is taking them a long time to make good on that promise.  EToro is regulated by the City of London so it is safe way for non tech people to get into the market.

I think in the last six months these alternative ways of buying XRP are becoming more common

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3 hours ago, Plato said:

The counterpoint is: XRP's liquidity should mostly be rooted in banks/financial institutions. Sure, this is true. However, immense liquidity would require consumer investment. Consumer buy-in. Right now, the majority of people don't understand cryptocurrency, and they have no idea what XRP is about. Those who are aware of the crypto space and do understand what Ripple is about... Well, most of them haven't fully invested, or they haven't invested at all. Why? Barrier of entry. 

I agree XRP liquidity "should be rooted in banks/financial institutions". What I'm questioning is the need for consumer investment as a priority. At the moment, I'm being lazy in not looking up what the consumer investment level is compared to banking/financial investment level may be. My gut feeling is that the banking/financial investment is much larger than consumer investment. If this is true (I have to do some research on this), then Ripple's target markets of cross-border payments is a good pick. If it's not true, it's still a good pick.

Why? Because that's where the money is concentrated - a big stash of cash in the hands of few. It makes more sense to convince the few that RippleNet and XRP is the way to go than to convince every single consumer that the company has what they need. Get the big players on board, and the masses will follow.

My 2 drops.

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Interesting, but i dont agree about some portions...

1. Thus, a person is willing to pay a 3X markup to purchase the currency in such a simplified manner, so as to evade the painstaking purchasing process. 

Causation does not imply correlation. Just because someone is selling XRP on eBay, does not mean in any sense that someone is going to buy. And even if someone does buy it, there is no evidence that this individual even knows that they can buy XRP on exchanges. How many of us have purchased something only to find out you could have bought it somewhere else for less? I could sell a "Genuine melted ice cube" on ebay. Doesnt mean someone wants it.

 

2.  Perhaps you, like me, have forgotten about our first foray into purchasing crypto. But, as I reflect on my experience, I remember these things:

1. Relentlessly Googling "Ripple", "Cryptocurrency", "Exchange", "Bitstamp", "Binance", "Crypto taxes", "What's a cold wallet?", etc. 

2. Attempting to get verified. 2 weeks for Binance; 7 months for Bitstamp (although these time frames have decreased, I believe).

Was purchasing XRP really THAT difficult? Even if it took someone a month to figure it out.. they did figure it out, right? Are we, as investors, supposed to give up because something is difficult? How many of us felt accomplishment after our weeks of research paid off?

 

3. Sending pictures of my license and other very sensitive personal information to a German-based cryptocurrency exchange. 

How many online businesses have our personally identifiable information stored on their servers? Bank accounts, credit cards, discount cards to grocery stores, amazon. Even Equifax and TransUnion.. the people who are SUPPOSED to keep us safe, have been victims of hacks. Our information is out there. Privacy is a thing of the past. I laugh when i see people post pictures of their cars online, yet blur out their license plates. thousands of people see our plates every single day yet we think we're protecting ourselves online.

 

 

4. Grasping the concept of fund transference between an exchange and a "wallet". 

Again, its difficult, but not impossible. If someone really wants to invest in XRP.. theyre going to find a way. i grew up in a time when we thought it would be hundreds of years in the future before a radio could print out a newspaper in the home. We now call that the internet. yet i was able to figure it out.

 

 

5. Waiting and waiting and waiting for money to clear in Coinbase. 

6. Understanding how to buy ETH/BTC/LTC, transfer to exchange, purchase XRP, then transfer to wallet. 

Again (again), its a learning curve. Are the people in XRPchat.com super humans with super intellect? No way. We're a bunch of cartoon characters, dead presidents, star wars fanatics, box fans, poultry, a guy who thinks he's a sandwich, and a pickle, not to mention the many other colorful characters. We were all able to learn how to invest here. The thing which separates us from others, is that we got in early. Anyone who buys XRP under $10 (my opinion) is in early.

 

My point is this: It's extremely overwhelming and intimidating. Just the process itself. Now, try to complete a process while surrendering personal information... and your precious fiat.

Only invest what youre willing to lose; whether its because XRP fails or your money is stolen... and there is zero problem.

 

Early bitcoin adopters bought their bitcoin back in 2010 through paypal. many of them had to meet complete strangers in public spaces and hand off money for bitcoin documention; and you didnt even have proof that what you were buying was really even a bitcoin!

 

Edited by XRPto50dollars
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That’s a good and funny post! I would say though that I agree with the original poster. I think you give too much credit to the average citizen. The overall process is hard and cumbersome to someone that has little internet or technical knowledge. Then add in the fact that, even if they did figure it out, they’d chicken out because they’d be afraid of screwing up and lose their money with the various transfer processes. He’ll, Ive even dreaded the thought of my wife trying to navigate the liquidation process and she is smart!! Also, to even get to this point, the average joe would have to be determined in their research to even find XRP. Most people at this stage heard from a friend or friend of a friend that it’s the “next big thing” and do little due diligence. They want easy money and chase fads. We are early. 

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My own experience....my biggest concern was how to safely store them.....I was into crypto 0 percent....never followed it or cared at all....but still new about mt gox, and all the theft etc.....I actually believe custodial issues are major hurdle that are/ will be figured out and hence increase investment interest...but don’t underestimate the bad historical impression of the uninformed.

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1 hour ago, Xrpforme said:

That’s a good and funny post! I would say though that I agree with the original poster. I think you give too much credit to the average citizen. The overall process is hard and cumbersome to someone that has little internet or technical knowledge. Then add in the fact that, even if they did figure it out, they’d chicken out because they’d be afraid of screwing up and lose their money with the various transfer processes. He’ll, Ive even dreaded the thought of my wife trying to navigate the liquidation process and she is smart!! Also, to even get to this point, the average joe would have to be determined in their research to even find XRP. Most people at this stage heard from a friend or friend of a friend that it’s the “next big thing” and do little due diligence. They want easy money and chase fads. We are early. 

We're literally living Bitcoin 2010 all over again. XRP could go either way. we either hold and make it big or hold and make it nothing. holding really isnt that difficult. price goes up, hold. price goes down, hold. price makes enough profit to by a small country.. sell.

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