ICookinBrine Posted October 10, 2018 Share Posted October 10, 2018 The comparison Cory Johnson recently drew between Chevron's relationship with Oil and Ripple's relationship with XRP made me wonder if there is a better suited low-tech analogue for XRP. If so, we could look at the regulatory framework applied to that analogue and evaluate whether the level of regulation, or lack thereof, of that that analogue would suit XRP. Here is the original tweet referenced: To be clear, the reply is helping someone understand that XRP and Ripple refer to distinct things in 2018. I'm engaging in an unrelated line of thought that was merely prompted by the Chevron/Oil analogy. What is the best historical, low-tech analogue for XRP? There are a number of qualities of XRP that make oil as a less than ideal analogue. Some qualities I would ascribe to XRP are as follows: (1) capable of being used as a tool to accomplish a task; (2) strictly limited supply; (3) originally disbursed from a single, private source; (4) capable of acquired and stored; (5) a marginal portion is consumed to perform its utility; (6) capable of being permanently destroyed/lost (e.g., black hole accounts); (7) the volume of remaining supply affects its value but not its utility (generally for all practical purposes); (8) value affects the volume needed to perform its utility. Oil and other rare hard commodities are decent points of comparison. To go through the list above for oil: (1) yes, it is useful; (2) oil is theoretically limited, but more can be randomly found so it's not limited from a practical standpoint at the moment; (3) oil is not really sourced to a single origin, although I get the point, Chevron and a few others collect a lot of oil; (4) yes, oil can be acquired from those few who collect a lot of it and stored; (5) the analogy kind of falls away on consumption, because oil is generally consumed entirely to perform its utility; (6) yes, it is capable of being lost or destroyed, but again complete consumption (as opposed to fractional consumption) is kind of the point for oil; (7) no, again oil is consumed to generate utility; (8) no, the volume needed to perform utility is generally independent of volume. I'm somewhat partial to the notion that XRP's historical analogue would be a "private currency" a la privately issued California gold coins from the mid-19th century. There are some shortcomings there as well, but I like the idea that both existed/exist to fulfill unmet needs for the transfer of value in the regions in which were or are used. mistatee2000 1 Link to comment Share on other sites More sharing options...
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