Jump to content
Sign in to follow this  

Will the price

Recommended Posts

20 hours ago, RippleRunner said:
On 10/12/2018 at 12:57 PM, GiddyUp said:

Substitute anything you like for XRP (assume that the item has a finite amount, like XRP)

Will the price of (a finite amount) of gold move due to banks using it?

Will the price of (a finite amount) of silver move due to banks using it?

Will the price of (a finite amount) of diamonds move due to banks using it?

You see? It seems obvious when the question is framed correctly...

I don’t understand 

It's a "what if" question... if "something" is used for money, and there is a finite amount of that "something", then IMO the price would go up due to scarcity as the shift to mass adoption takes place. Witness the brief spike that XRP took earlier this month when there was increased buying.

When XRP is actually being used as intended , and not immediately sold (traders) that spike should become a plateau. Repeated spikes/plateaus should be the norm as the XRP use case expands, and the amount available does not. Once all XRP has gone into circulation, the rubber will really hit the road, but in the meantime, monthly supply is inherently limited by the escrow.

For an explanation of how that works, read this article on prison economics...


Prisoners Explain Why A Pack Of Mackerel Is The Gold Standard Of Currencies In America's Prisons

"As one prisoner notes in the Wall & Broadcast video below, the 'mack' was also "inherently inflationary" because its supply was limited to 14 macks per week per inmate...."

"Mackerel had utility because it was inherently inflationary.  A certain amount of macks came into circulation every day.  Every inmate can only buy 14 mackerels per week.  14 times 500 inmates time 52 weeks is the amount of mackerels that are coming into circulation every year and that's why it was a pretty good stable value of currency."

Share this post

Link to post
Share on other sites
Sign in to follow this