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Answer chat: XRP Price

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4 hours ago, stickmonster said:

He also said at that event (I paraphrase) he suspects XRP price accurately reflects its current value

That was a good and responsible answer by David Schwartz, especially in a public forum. My slight twist on it is that at any time, the price reflects market participants’ perception of  value. And perception is a very hard thing to model. If we suspend our disbelief for a second and consider xrp as a straight currency, what drives currency values? There’s nothing tangible backing them, no hard asset you can exchange them for. No price/earnings ratio. And with crypto, there are no GDP growth metrics or  interest rate differentials to analyze, as there are with fiat currencies. What’s left is some mysterious mix of adoption/usage, news, and crowd psychology. The crowd psychology bit is what’s so squirrelly. Bulls beget more bulls, and bears beget more bears, leading to the manic depressive cycles we see. 

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Posted (edited)
On 3/15/2019 at 8:23 PM, BobWay said:

As David has said, Ripple the company would benefit from a higher price but has no means to control it.

Thank you Bob!

Edited by XRPVenture

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Hi Bob,

I’m learning so much reading this blog, but I keep coming back to the most fundamental question.

If XRP is to serve as a bridge currency for international payments, the immediate logic points to stability as a needed mechanism. Then, what factor(s) require the XRP price/value to rise and how? 

If the answer is liquidity, this still alludes me, as there must be aspects of crypto vs traditional currencies that r not clear to me. Thank you for your time! 

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21 hours ago, GoodTimesRoll said:

I’m learning so much reading this blog, but I keep coming back to the most fundamental question.

If XRP is to serve as a bridge currency for international payments, the immediate logic points to stability as a needed mechanism. Then, what factor(s) require the XRP price/value to rise and how? 

If the answer is liquidity, this still alludes me, as there must be aspects of crypto vs traditional currencies that r not clear to me. Thank you for your time! 

Please keep reading in this club. I've answered in several places. I'm sure that is a popular topic. Please, someone hunt down the good posts for him.

Normally you would think that you need stability. In fact a stable currency makes a great bridge currency. But it turns out what you really need are market with tight spreads. It doesn't matter what the price is, or how it moves, if the tight spreads continue, then XRP would continue to be a great bridge.

In most markets, volatility is the enemy of tight spreads. This is true of XRP as well. But Ripple (as a company) has talked about how to reduce XRP spreads. I'm talked about a mechanism that I developed for doing and that Ripple and I patented.

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4 hours ago, BobWay said:

Please, someone hunt down the good posts for him.

I’m sure I received a thanked reply when providing a link to the ‘when moon’ thread for this exact question on another thread.

Maybe it was asked twice on separate threads.

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On 3/19/2019 at 10:11 AM, BobWay said:

Normally you would think that you need stability. In fact a stable currency makes a great bridge currency. But it turns out what you really need are market with tight spreads. It doesn't matter what the price is, or how it moves, if the tight spreads continue, then XRP would continue to be a great bridge.

In most markets, volatility is the enemy of tight spreads. This is true of XRP as well. But Ripple (as a company) has talked about how to reduce XRP spreads. I'm talked about a mechanism that I developed for doing and that Ripple and I patented.

Well this is being achieved right now, the volume can double, great news and announcements made daily, yet, the price doesn't move, at this point XRP has become just like another Stable coin. It works well :)

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Looking at the Volume, it's shot way up the last two days, yet XRP price isn't moving much, while other cryptos are shooting up into double digits gains.   I would say that the mechanism works really well

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