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Julian_Williams

Mercury FX Confirms Plans To Send Million Dollar Payments Through xRapid

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3 minutes ago, htrenkle said:

You guys don't know what DEMAND and SUPPLY is.

Supply is: I offer 30 XRP for $10 on Bitstamp.

Demand is: I offer 200 MXN for 10 XRP on Bitso. 

So what xRapid does, is, it takes the supply on Bitstamp, giving USD for XRP and gives it to the demand on Bitso, giving XRP for MXN. 

Demand is built by the person/market maker who makes the limit order on Bitso. A very easy way to explain it. Lets take the example from above.

Lets say Person A offers 200 MXN for 10 XRP. xRapid takes this limit order from the order book for a payment between USA and Mexico.

So.... WHY, WHY in gods sake, should Person B now say: "oh great, I will now offer 220 MXN for 10 XRP"? Why should he do that? 

Imagine the armies of the world decide overnight to use arrows instead of bullets.

Holy crap! I wonder what happens to the price of arrows. Stays the same, right?

:punish:

People will stockpile arrows. Corporates will stockpile arrows. There will be arbitraging of arrows. Market makers will buy arrows. Institutional speculators will acquire arrows. Hedge funds will stock a percentage of their assets as arrows.

The price of arrows goes up.

"But can't the armies just use the arrows they're getting shot at with? Why would they need to buy arrows at all?"

^That is your argument.

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1 minute ago, ADingoAteMyXRP said:

Imagine the armies of the world decide overnight to use arrows instead of bullets.

Holy crap! I wonder what happens to the price of arrows. Stays the same, right?

:punish:

People will stockpile arrows. Corporates will stockpile arrows. There will be arbitraging of arrows. Market makers will buy arrows. Institutional speculators will acquire arrows. Hedge funds will stock a percentage of their assets as arrows.

The price of arrows goes up.

"But can't the armies just use the arrows they're getting shot at with? Why would they need to buy arrows at all?"

^That is your argument.

Excuse me this is ridiculous, comparing a digital asset with an arrow. XRP is made to be used again and again and again and an arrow is there to kill people. 

Further, I explained how utility can drive demand for XRP, it just doesnt happen with xRapid

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13 minutes ago, BrownBear said:

That is demand.

Buying XRP reduces the supply side. Selling XRP on the other end increases supply side yes, but there are MULTIPLE transactions going on at once, they don't wait for one to finish and then wait for the market makers to arbitrage back so everythingt resets to the previous value before starting another transaction. In order to fill MULTIPLE orders o each side, there needs to be enough limit orders to fill the value demand being transferred. The more transactions that take place simultaneously, the greatest the demand for the supply of XRP will be. There is not argument to that. You simply are not thinking big enough.

You are ignoring the utility but describing speculation where the only factor is buyers outnumber sellers. You don't seem to understand the subject matter. And it was in Germany, watch the video from June.

You can repeat your inaccurate calculations as many times as you like, but without volume you are saying XRP's value is determined purely on speculation and this is incorrect. XRP is not a speculative assets, it is a utility token and it's value will primarily be determined by the demand needed in its utility to move value between currency pairs.

As for your "It just buys and sells XRP in less than a minute and it doesn't matter if it buys 1000 or 10k XRP it sells them afterwards." It sells them ON ANOTHER EXCHANGE IN ANOTHER COUNTRY. The exchange where the XRP was first bought now has less XRP to use and any following transaction will need to pay a higher price until the market makers move the XRP back from the other end and I bet ya ass that they will look to make a profit.

If I go to an exchange and buy $50,000 USD worth of XRP to send to Mexico and then someone else buys $50,000 USD worth of XRP to send to EUR, they are NOT going to wait for the XRP to come back as arbitrage before they send theirs to the EU just so they can buy the same value worth of XRP but at the same token value I did, they are going to buy and send at a rate that can fill their order. and the the more repeat transactions become, the more demand will push the price of XRP up. As Arbitrage moves in to refill the first exchanges XRP pool, they will try and sell to the NEXT BUYER at a slightly higher price to make a profit. 

There are plenty of posts, threads and articles that explain how market makers work, I suggest you read some.
 

You are wrong in so many cases it is completely worthless to answer you. 

The price of an asset is defined by how much a person is willing to pay for it. Edit: It doesn't matter if a xRapid engine buys and sells like a bot. It essentially comes down to one point: how much is human mankind willing to pay for XRP. THIS is how market works. Don't tell me ******** that I do not know how the market works, I traded on a daily basis literally everything which moves including options and futures. 

If you don't believe me, just read it from the man itself, David Schwartz answering on Quora. "If a large amount of banks were to adopt xrapid and started using xrp, how would that impact the token's value?" 

https://www.quora.com/If-a-large-amount-of-banks-were-to-adopt-xrapid-and-started-using-xrp-how-would-that-impact-the-tokens-value

The point is: "This only works if they keep a pile of XRP around to match the times when other people need the assets they hold to the times when they need to make an outbound payment. Essentially, instead of keeping many piles of money all over the world to handle their international payments, they could just hold one pile of XRP to convert international payments into domestic ones in all the corridors where there’s sufficient deployment of xRapid." 

It is: utility --> companies acknowledge the utility --> companies buy and hold more XRP

Exactly like I described. You are just wrong. Accept it. 

Edited by Guest

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David Schwartz on twitter: "Yeah. We have some tricks, such as having some other entity hold the XRP for them. But short term, solutions will likely mostly involve FIs not holding XRP. Hence, xRapid." 

Here you have it. Holding XRP will have an effect on demand, nothing else. Because unlike your theories, this is the only thing which really drives demand (before holding you have to buy them, right?) and lowers supply (holding means no selling). 

 

Edited by Guest

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24 minutes ago, BrownBear said:

And it was in Germany, watch the video from June.
 

I don't know which video you mean and to be honest I don't care. What I mean is this:

Quote from David Schwarz

Say xRapid users start performing a lot of USD->XRP->MXN payments. There are two things that might happen: (...) All the liquidity gets used up. There just isn't enough "bandwidth" left in the market makers and liquidity dries up.

And this is also exactly the same what I said COULD happen.

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It is really astonishing how people in here lack economics 101 and still invest their money in highly risky assets. 

The good thing is, when you visit forums like bitcointalk, it is even worse. Welcome to retail investment. 

Do you guys know that for every order a retailer makes on a CFD exchange, the broker automatically(!) makes the opposite order? Because retail is such dumb money and loses about 80% of time, the broker can just set up a trading system that countertrades retail. THIS is how the market works and not how some people imagine in their wet dreams. 

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37 minutes ago, htrenkle said:

I don't know which video you mean and to be honest I don't care. What I mean is this:

Quote from David Schwarz

Say xRapid users start performing a lot of USD->XRP->MXN payments. There are two things that might happen: (...) All the liquidity gets used up. There just isn't enough "bandwidth" left in the market makers and liquidity dries up.

And this is also exactly the same what I said COULD happen.

Quote

David Schwartz:

Say xRapid users start performing a lot of USD->XRP->MXN payments. There are two things that might happen:

Market makers start making more money. This attracts more market makers. Liquidity improves, spreads go down.

All the liquidity gets used up. There just isn't enough "bandwidth" left in the market makers and liquidity dries up.

I don't think 2 is going to happen. But I won't be able to prove that until xRapid volumes ramp up and we see what happens. We've done a lot of thinking and working on how we're going to monitor market response to learn as much as possible so that we can make the best possible decisions about future corridors and mechanisms. Brad Chase, one of the stars on the C++/rippled team, moved to the data team to help them out with this. Initially I was sad to lose him from that team, but then I realized how awesome it would be to have someone on the data team who knew everyone on the C++/rippled team and knows how the XRP Ledger works in great detail.

Just adding his comment here for clarity.

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On 7/16/2018 at 7:00 PM, Wandering_Dog said:

We are talking about lending, is that correct? In order for the corridor to persist, once the liquidity dries up, it needs to recirculate back, without having to spent on goods or services. 

Is there any work being done on a repo-like mechanism, which enables xrp holders to offer their xrp up at some rate of interest? I'm guessing that the strengths of a public ledger become a weakness in this case, as it's difficult to move xrp from a given public key without the associated private key, such as when enforcing the terms of a lending contract, any xrp sent to an address as a loan is extremely difficult to recover. We need some sort of mechanism that enables lending and overcomes the hurdle of risk associated with actually moving that xrp from creditor to debtor. Am I getting any of this right?   

Did you ever find an answer to this @Wandering_Dog?

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1 hour ago, htrenkle said:

Excuse me this is ridiculous, comparing a digital asset with an arrow. XRP is made to be used again and again and again and an arrow is there to kill people. 

Further, I explained how utility can drive demand for XRP, it just doesnt happen with xRapid

I dumbed it down as much as I could. You’re on your own Bud!

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I don't find this tweet bullish or bearish.

Its just part of the incentivized deal, like the new startup Sendfriend got USD 1m from Ripple for marketing. So they are just doing their jobs, they could have written 10's of millions as well. But now we have 100's of twitter gurus, YTbers and then few crypto sites will follow pushing this hyped tweet even further.

I'm not saying this is bad, Ripple is putting money into the xRapid ecosystem with small startups which might/might not benefit in the long run, but at the same time its not the "Boom" "Breaking" "Just In" "WooooWooohahaha" Kakaboomboom" "Wonka knows" and all other #Riptard stuff which the biased community will have you believe.

:clapping::clapping::clapping:

:viannen_89:

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