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BobWay

Hi! I'm Bob

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Hi Bob ,

I have always wondered what kind of people Mr Treacher , Mr Dao and Mrs Delatinne were . Everyone at ripple is amazing but these guys always seem like they are the best in their fields. ( Well so are the others probably :) )

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40 minutes ago, Ryyy20 said:

Also since were getting speculation out of the way and David @JoelKatz is in the house, is there any reason Uber/Amazon/AirBNB are always referenced in Ripple presentations? I could see them hugely benefiting from Ripple technology due to constantly paying out in a variety of currencies (xVia comes to mind). Are they interested?

 

 

Quote

Imagine if Ripple is successful and XRP is an intermediate currency in lots of FI's international payments. Now think about a company like Uber or AirBNB. You take in and pay out money all over the world. Some of your money will come from and go to corridors that FIs use XRP to pay into and out of. So how can you save money and improve your customer experience?

Well, when people need to make payments into places where you have money and out of corridors where XRP is liquid, you can facilitate their payment by giving them some of your cash. By providing others with liquidity you can buy XRP at or below market. This lets you accumulate a pile of XRP very cheaply.

Now, when you need to pay into corridors that XRP is liquid into, you only have to pay for the "from XRP" half of the transaction, not the "to XRP" half. This makes your payments cheap.

This strategy saves you a lot of money, but it requires you to hold a pile of XRP. If your holding cost is low because XRP tends not to have sharp drops in price, it's a huge win for you.

And every corporate who does this and holds a pile of XRP adds to demand.

 

Edited by Flintstone
Link. Not sure if it’s working properly, my phone is being weird!

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1 hour ago, JoelKatz said:

I talk to Ethan (head of Xpring and pretty much everything at Ripple other than cross-currency payments) frequently about whether there are good use cases for the ledger's decentralized exchange now and whether that's something we can use Xpring to help develop.

Isn’t Wietse Wind @xrptipbot doing this with his Xpring supported XRPLLabs? https://xrpl-labs.com/en/

9C70F896-E531-441B-94AC-1B7331FCC280.jpeg

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9 minutes ago, BobWay said:

This was another link I looked at in association to this post, but it seems to be edited out now.

https://drive.google.com/file/d/1oH1pflv8ebpUyevLaUxQJ9jBm1iKOJ32/view

PLEASE DON'T BET YOUR LIFE SAVINGS BASED ON THESE ARGUMENTS!

Again: I don't give financial advice. But I see a lot of misunderstands in how markets work in these links.

It is really important to understand that people/firms make money in the market in different ways.

Market Makers: Make money by selling TIME. They are not speculating on the price. In fact, the price moving represents unfortunate risk to them. Market makers exist to make sure that the assets you hold are always liquid. Meaning you can sell them whenever you want without waiting, at a price that is predictable and doesn't move the market. A market maker buys low and sells high by definition. The difference may be only a couple of pennies net on the transaction, but they want to do those transactions millions of times. As I mentioned market making system at large banks can trade TRILLIONS of dollars in a single day. The money simply vibrated back and forth like alternating current.

Arbitragers: Make money based on MISS-PRICING among markets. Their role is to make sure EVERY market reflects the same market price. Arbitragers hate to take risk, so they don't. They buy on one market and sell on a different market at exactly the same time (or as close as is computationally possible). So the argument that says, as soon as people see the price go up in one market, they'll raise their prices in other markets is not likely a key dynamic. One of the things that arbitragers need to be good at is rebalancing their funds very cheaply. Expect that they are better at this than you are. So if one market is leading the way up, and an arbitrager is lifting a secondary market to match, you can be sure the trader has a fast and cheap way to move his non-crypt funds between markets.

Speculators: Make money based on changes in the market price. You can think of them as getting their cut last. Markets tend to move based on imbalanced flows. If the same amount of USD is flowing into the XRP market as flowing out of it, then the price will stay the same. If more USD wants to flow in than out, the price will rise. And in the reverse the price will fall. This is one of the huge advantages that the XRPL has over mining based systems.

With mining, there is a constant outflow to all fiat currencies due to the miner's need to pay their electricity bills and to cover the cost of expensive mining hardware. So bitcoin andother mining based cryptocurrencies need a consistent source buyers using fiat, just to maintain the current price. So if all buyers failed to show up on one day, the price would plummet because miners MUST sell to cover their bills. They can't wait (limit orders) indefinitely for buyers to show up. Ripple validators don't have this continuous utility burn rate. There is some hardware but it is insignificant compared to a mining rig. There is some cost, but it is also insignificant and consistent compared to a mining rig.

-----

What does push XRP prices up for speculators?

1) New market makers wanting to enter the markets in order to scalp the high profits from existing market makers. These traders need to buy of "fat stacks" of XRP to keep deployed (long term) in the markets they are making.

2) Arbitragers wanting to enter the market in order to scalp the high profits existing arbitragers are making. Likewise, they need "fat stacks" of XRP deployed at multiple exchanges so they can execute trades at the same time.

3) Other people who see holding a very liquid (to every currency) asset as a personal advantage. This includes business and regular people.

I personally, am NOT trading based on these numbers.

I see arguments like this all the time. Most are not very well thought out. But if you want to get overly excited about something that might not happen. I've heard a much more fun bit of speculation that went:

Of course, whose to say when or if that will ever happen. Again, math is fun. But be very careful with your bets.

Thanks a lot Bob.That was really helpful :)

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Oops, I meant to add this link to the above post. I can't speak for its conclusions, but the description of the problem is worth understanding.

https://www.cs.cmu.edu/~softagents/papers/CR_nevmyvaka_sycara_seppi.pdf

I just googled this one up because I've read others before. But if you haven't read anything like this, you should do your own googling.

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9 minutes ago, BobWay said:

This was another link I looked at in association to this post, but it seems to be edited out now.

https://drive.google.com/file/d/1oH1pflv8ebpUyevLaUxQJ9jBm1iKOJ32/view

PLEASE DON'T BET YOUR LIFE SAVINGS BASED ON THESE ARGUMENTS!

Again: I don't give financial advice. But I see a lot of misunderstands in how markets work in these links.

It is really important to understand that people/firms make money in the market in different ways.

Market Makers: Make money by selling TIME. They are not speculating on the price. In fact, the price moving represents unfortunate risk to them. Market makers exist to make sure that the assets you hold are always liquid. Meaning you can sell them whenever you want without waiting, at a price that is predictable and doesn't move the market. A market maker buys low and sells high by definition. The difference may be only a couple of pennies net on the transaction, but they want to do those transactions millions of times. As I mentioned market making system at large banks can trade TRILLIONS of dollars in a single day. The money simply vibrated back and forth like alternating current.

Arbitragers: Make money based on MISS-PRICING among markets. Their role is to make sure EVERY market reflects the same market price. Arbitragers hate to take risk, so they don't. They buy on one market and sell on a different market at exactly the same time (or as close as is computationally possible). So the argument that says, as soon as people see the price go up in one market, they'll raise their prices in other markets is not likely a key dynamic. One of the things that arbitragers need to be good at is rebalancing their funds very cheaply. Expect that they are better at this than you are. So if one market is leading the way up, and an arbitrager is lifting a secondary market to match, you can be sure the trader has a fast and cheap way to move his non-crypt funds between markets.

Speculators: Make money based on changes in the market price. You can think of them as getting their cut last. Markets tend to move based on imbalanced flows. If the same amount of USD is flowing into the XRP market as flowing out of it, then the price will stay the same. If more USD wants to flow in than out, the price will rise. And in the reverse the price will fall. This is one of the huge advantages that the XRPL has over mining based systems.

With mining, there is a constant outflow to all fiat currencies due to the miner's need to pay their electricity bills and to cover the cost of expensive mining hardware. So bitcoin and other mining based cryptocurrencies need a consistent source buyers using fiat, just to maintain the current price. So if all buyers failed to show up on one day, the price would plummet because miners MUST sell to cover their bills. They can't wait (limit orders) indefinitely for buyers to show up. Ripple validators don't have this continuous utility burn rate. There is some hardware but it is insignificant compared to a mining rig. There is some cost, but it is also insignificant and consistent compared to a mining rig.

-----

What does push XRP prices up for speculators?

1) New market makers wanting to enter the markets in order to scalp the high profits from existing market makers. These traders need to buy of "fat stacks" of XRP to keep deployed (long term) in the markets they are making.

2) Arbitragers wanting to enter the market in order to scalp the high profits existing arbitragers are making. Likewise, they need "fat stacks" of XRP deployed at multiple exchanges so they can execute trades at the same time.

3) Other people who see holding a very liquid (to every currency) asset as a personal advantage. This includes business and regular people.

I personally, am NOT trading based on these numbers.

I see arguments like this all the time. Most are not very well thought out. But if you want to get overly excited about something that might not happen. I've heard a much more fun bit of speculation that went:

Of course, whose to say when or if that will ever happen. Again, math is fun. But be very careful with your bets.

I read conservative explanations like this, and then I see previous posts by David mentioning that Ripple needs XRP's price to be much higher to function as intended.  

Not knowing what to really think, I just cross my fingers and hope that we reach $3 again some day. However, your explanation above and others make me feel that may not happen (at least not for quite some time). I'm willing to wait; just wish I had realistic expectations to base it all on

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Hi Bob and welcome. Great, informative stuff so far. 3 Questions. Is Cory Johnson’s departure good or bad? Any feasibility to Xrp being added to SDR? Any validity to the tweets by Leer912 on Twitter

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