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moncho

Three things Amazon stock can teach you about XRP

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Hello All,

Obvious differences aside (different asset class and market maturity), I posted a blog recently where I give my opinion of how Amazon stock price over the years can teach us a few things about XRP.

https://coil.com/p/moncho/Three-things-Amazon-stock-can-teach-you-about-XRP/47QOmuWVY

The part that caught my attention about Amazon stock was its 35 month downtrend from 2003 to 2006. Those who were patient enough were handsomely rewarded.

Do you think XRP has the potential to follow a similar trajectory as AMZN?

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11 minutes ago, wasniewskikamil said:

Xrp isn't a share in Ripple business. That's completely different thing, than shares. 

Its really hard to predict future price and basically its just guessing. 

 

Agree 100%. Although, even if these are completely different things, XRP could follow a similar trend fueled by different factors than the ones driving shares.

IMO, utility is to digital assets what profitability is to stocks.

Edited by moncho

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1 hour ago, moncho said:

Agree 100%. Although, even if these are completely different things, XRP could follow a similar trend fueled by different factors than the ones driving shares.

IMO, utility is to digital assets what profitability is to stocks.

There is no institution taking care of xrp  price stability, just like central banks protecting their currencies and that's causing xrp to be easy target for speculative attacks. 

Utility may be the factor driving price up, but doesn't guarantee that. 

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I don't think it's a good comparison personally. Amazon provides profits and dividends, XRP if anything acts more like a commodity, so maybe in future it's worth comparing to gold, wheat, oil, uranium, etc. 

The only thing that would change my mind on that is if holding or using XRP itself, for the average person and somewhat like a dividend-paying stock, could provide some kind of income incentive – but I am not a fan of arbitrary proof of stake type token-printing systems that provide rewards for staking/mining etc. So the only thing left is, really, what XRP should be a tool for anyway, that is: providing liquidity and rewarding liquidity providers

Where are the liquidity incentives promised years ago?! 

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1 hour ago, Archbob said:

Amazon's stock price is directly tied to its value as a company. XRP's price is not tied to Ripple's worth as a company. Ripple just got valued at $10 billion, XRP did jack squat.

Yes, XRP is not a stock, it is a digital asset unrelated to being a share holding in the company.

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On 1/17/2020 at 12:17 AM, Julian_Williams said:

Yes, XRP is not a stock, it is a digital asset unrelated to being a share holding in the company.

Fully agree. My intention with the post was to underline the same psychology behind the long term holding in each case (saving the differences between asset classes, which are fully understood).

In other words, only the Amazon holders that focused on the business rather than price action got rewarded in the end.

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On 1/16/2020 at 9:46 PM, Archbob said:

Amazon's stock price is directly tied to its value as a company. XRP's price is not tied to Ripple's worth as a company. Ripple just got valued at $10 billion, XRP did jack squat.

Lol, you do know XRP's market cap is 10B right?

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