Jump to content
Molten

Charting the course of XRP

Recommended Posts

Just read an article with XRP not being used by big banks because of slippage. They way I see it, the only way to solve that problem is pump xrp to sky high price to match the big banks usual transaction amount. I have been buying below 0.20. not to say we won't go below 0.10 because I will be buying more. What I am saying is unless Ripple is going to create xrp out of thin air, the amount in escrow will not be sustainable with current price. Even when xrp is *20 from current level, it is still short of the value of it is to be the currency of choice for big banks.

Share this post


Link to post
Share on other sites
17 minutes ago, TeeKay said:

Just read an article with XRP not being used by big banks because of slippage

I think I can just about guarantee that article is as well researched as most crypto articles...   and so is full of rubbish.

Share this post


Link to post
Share on other sites
Posted (edited)
8 minutes ago, Tinyaccount said:

I think I can just about guarantee that article is as well researched as most crypto articles...   and so is full of rubbish.

As I have asked  before, what price approximately, does XRP need to be in order to be a bridge currency for say 10%, 20%, 30% etc of cross border transfers per day?

I am not clever enough now know how to work that out, but plenty of people in the world with cross border banking experience must know that sliding scale. Surely? 
I don’t know why it’s a secret or not published, if XRP is used in say 30% of cross border payments per day, XRP must therefore be in the region of nn USD per XRP

I guess I am oversimplifying?

Edited by WarChest

Share this post


Link to post
Share on other sites
43 minutes ago, WarChest said:

I guess I am oversimplifying?

Yeah that’s the issue.  There is no direct relationship.  There are so many variables around the supply, turnover, order depth, OTC supply, methodology etc that no one can really say.  

The one thing you can say for sure is that higher price aids the process.  That doesn’t mean it’s guaranteed to rise though.  

Share this post


Link to post
Share on other sites
Posted (edited)

Looking back, I was right about Amazon.com, Pet.com and Enron. I was wrong about Apple and Facebook. So I'm betting on my assessment that xrp will have to rise.

Edited by TeeKay

Share this post


Link to post
Share on other sites
4 hours ago, WarChest said:

As I have asked  before, what price approximately, does XRP need to be in order to be a bridge currency for say 10%, 20%, 30% etc of cross border transfers per day?

I am not clever enough now know how to work that out, but plenty of people in the world with cross border banking experience must know that sliding scale. Surely? 
I don’t know why it’s a secret or not published, if XRP is used in say 30% of cross border payments per day, XRP must therefore be in the region of nn USD per XRP

I guess I am oversimplifying?

The below link is a calculator based on a Stanford paper coauthored by a Ripple board member. It takes various parameters as volume is just one price influencer.

I don't know if the original paper is accurate or if this calculator is coded in accordance to it. But it will give you an answer to your question. 

https://www.allinxrp.com/Calc/

Enjoy :)

Share this post


Link to post
Share on other sites
4 hours ago, WarChest said:

As I have asked  before, what price approximately, does XRP need to be in order to be a bridge currency for say 10%, 20%, 30% etc of cross border transfers per day?

I am not clever enough now know how to work that out, but plenty of people in the world with cross border banking experience must know that sliding scale. Surely? 
I don’t know why it’s a secret or not published, if XRP is used in say 30% of cross border payments per day, XRP must therefore be in the region of nn USD per XRP

I guess I am oversimplifying?

I do not know the exact answer to that (doubt anyone does, too many variables) but price is not the issue perse.

It has to do with how liquid an exchange is. So how thick the orderbooks are on both the buy and sell side. If a big transfer buys up the entire orderbook making the price fly up to a dollar its going to be a very expensive transfer. So there just need to be a lot of XRP for sale at close to eachother prices.

A higher price helps. But if the price is 10 dollar and the exchange only has 10.000xrp for sale on the entire buy side it would still be an expensive transfer.

Thats the reason only relatively small amounts can be transfered at a time currently. After that market makers need some time to rebalance the orderbooks back (giving them a small profit) and the next transfer can be done.

Share this post


Link to post
Share on other sites
Posted (edited)
3 hours ago, Caracappa said:

I do not know the exact answer to that (doubt anyone does, too many variables) but price is not the issue perse.

It has to do with how liquid an exchange is. So how thick the orderbooks are on both the buy and sell side. If a big transfer buys up the entire orderbook making the price fly up to a dollar its going to be a very expensive transfer. So there just need to be a lot of XRP for sale at close to eachother prices.

A higher price helps. But if the price is 10 dollar and the exchange only has 10.000xrp for sale on the entire buy side it would still be an expensive transfer.

Thats the reason only relatively small amounts can be transfered at a time currently. After that market makers need some time to rebalance the orderbooks back (giving them a small profit) and the next transfer can be done.

Exactly. Liquidity is the key to whether XRP is a success or not as a bridge asset, not its price. Slippage is occurring because right now there are often large spreads on the order book. That needs to significantly diminish for Banks to want to take the risk

Edited by ringer2

Share this post


Link to post
Share on other sites
8 minutes ago, ringer2 said:

Exactly. Liquidity is the key to whether XRP is a success or not as a bridge asset, not its price. Slippage is occurring because right now there are often large spreads on the order book. That needs to significantly diminish for Banks to want to take the risk

Yes liquidity is the key.   A higher price would help but only if there was sufficient volume.

The cryptoeri interview with Nick from FLashFx made exactly that point...  bigger volume begets more market makers begets bigger volume from tighter spreads and cheaper transfers.  It’s a virtuous circle once it’s running well enough.  That’s what we are watching right now...  it’s starting,  and hopefully will continue to ramp up more liquidity and corridors.

Share this post


Link to post
Share on other sites
25 minutes ago, ringer2 said:

Exactly. Liquidity is the key to whether XRP is a success or not as a bridge asset, not its price. Slippage is occurring because right now there are often large spreads on the order book. That needs to significantly diminish for Banks to want to take the risk

I'm closing down my XRPchat account. They say you should stop at the top. Ringer agreeing with me is the maximum achievement one can get on this forum. So I did it! Goodbye to all!

Share this post


Link to post
Share on other sites

Soooo. now we get to see if we had a one day pump or if we're going to trend higher. Not at all sure myself, but reasonably hopeful until proven otherwise.

I am at least temporarily back at full bags on XRP.

Share this post


Link to post
Share on other sites

×
×
  • Create New...