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23 minutes ago, XRPforALL said:

The logic here is laughable. Have you never heard of arbitrage? Within seconds of the bittrex price going even 1% higher than other exchanges, bots will transfer xrp to bittrex to take advantage of the higher price.

That selling will bring the price back down in line with other exchanges.

Incorrect. Bittrex is a preferred exchange. All preferred exchanges will be "communicating" and very tightly aligning collective price. 

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56 minutes ago, Benchmark said:

So I guess that arbitrage is about nice suits.

Nah I think you have the title wrong....   the one about suits was called Suits.  :)

Arbitrage is efficient in some places and not so in others.  I’ve seen the prices vary by a few percent between Aus and non Aus sites.  Also between say Gatehub and Bitstamp. 

And really big between Korean and elsewhere.  So it’s about ease of fiat movement...  paradoxically the thing we are hoping will be better with XRP.  :) 

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8 hours ago, radcity79 said:

Escrow gets sold OTC. Not on the market. ??

Spreads will be very tight. And they will be adjusted among the preferred exchanges. 

Yes, a sudden surge would create major sell pressure - among retail investors. Even retail whales. Guess who will gladly buy? The exchanges with massive reserves that have been pre-funded by ripple. Once all the small-thinkers have made millions, then the price will stabilize. Who knows for how long. But it's at that time that it will be ready for actual enterprise use. Which means billions and billions flowing through every day? Hour? minute? Guess how fast the remaining sell orders get gobbled up? Then guess what that does to the price? If the exchanges get low maybe they have a deal or partnership with Ripple to get a portion of escrow so they can keep the liquidity moving smoothly for the world. 

Admit it. It's pretty cool.

I love this world and all the amazing people dreaming up ways to make life better for everyone. All thanks go to the humble folks at ripple. 

Escrow does not solely get sold OTC. It also gets sold on the market by algorithms(not a lot right now but once in production I don't see why they wouldn't sell more on the market). !!

So how will the spreads be adjusted? By selling XRP at the same price point? If so, how does that increase the price as pictured in OP's post?

I wonder how the exchanges will get these massive reserves. Ripple does not have that kind of money to buy the whole market at a 500$ price point (neither on a 100$ price point). I doubt the exchanges have such massive reserves either.

How are people making 150000% returns small thinkers?

I don't see it being like the flip of the switch. Each individual payment can opt in to use XRP. So that increase to me seems gradually and slowly. I mean, once xRapid goes live, I doubt there will be millions going over it per day. There's probably not even billions going over xCurrent per day yet.

It's very cool if it'll pan out to XRP going 500+ ?

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3 hours ago, radcity79 said:

Incorrect. Bittrex is a preferred exchange. All preferred exchanges will be "communicating" and very tightly aligning collective price. 

What do you mean with "communicating" and aligning a collective price? Sounds like Borg from Star Trek ?

Let me give you an example on how High-frequency stock traders operate:

http://www.extremetech.com/extreme/154977-high-frequency-stock-traders-turn-to-laser-networks-to-make-more-money

On the precondition that the software is already fully optimized and no micro-seconds can be sequeezed out any further, they are turning into using laser and micro-wave links between exchanges for which companies are spendings 10's of millions of dollars to build. That reduction of few more milliseconds in latency between 2 exchanges enables them to win their arbitrage business over their competition.

Crypto currencies are no different than this and once the wall street guys jump in, we can be sure they will do everything in this regard also on cryptos.

Exchanges all run independently from each other and as soon as an arbitrage bot sees a financial opportunity (which they constantly do..) it will act between those exchanges.

Understanding how arbitrage works is also key as to why many cryptos are coupled with BTC. In my opinion, most arbitrage bots so far use BTC as their 'base currency' and hence either buy/sell another digital asset (like XRP) from/to their BTC holdings. Depending in which direction their money flows (perhaps some exchange has a better execution engine than another), their assets may become unevenly distributed among the exchanges, as to which they have to move their base currency (eg. BTC) around. I doubt they would trade against USD, as that would mean they would have to move fiat in between the exchanges, which could take days.

As soon as more and more exchanges start using XRP as their base currency and once those arbitrage guys understand that they can move their new base currency XRP within seconds (and not hours) in between the exchanges, we hopefully will see the decoupling happen from BTC.

 

 

 

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  • 2 months later...

You know what the real counter argument is?

 

That everyone and their Mom will be rushing to sell long before $589

 

and the long before you get to $589, you would trigger every single auto sell bot there is. This is just wishful thinking of going to $589 at once and maintaining it. These theories just aren't based on any kind of reality.

 

The Deep Dive Video is nonsense. Everyone would buy or transfer all their XRP from the other exchanges to that one and immediately sell down.

If you don't think people will automatically take millions of dollars worth of profits ... well, then you just haven't been in the real world long enough.

Edited by Archbob
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Here we go again. Having  invested since Early December last year and been a member of this group since January all I see is a whole load of hope. That’s great, but the truth is no ones knows when, if or how XRP is going to take off. Speculation is fun (ish) but it is patience that will win the day. Just relax and HODL and come back in three years to see how things are going.

I’ll get my coat...

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3 minutes ago, Geospectrum said:

Here we go again. Having  invested since Early December last year and been a member of this group since January all I see is a whole load of hope. That’s great, but the truth is no ones knows when, if or how XRP is going to take off. Speculation is fun (ish) but it is patience that will win the day. Just relax and HODL and come back in three years to see how things are going.

I’ll get my coat...

Agreed. XRP will skyrocket when we least expect it to. I remember back when I bought BTC at $150. Then watching it go back down to $100 made me feel like jumping ship. Glad I didn't. In 5 years, we'll all be laughing when we think back on XRP at these prices. Hopefully, for the right reasons...:)

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