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Will ODL cause an increase in price? Some thoughts..


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41 minutes ago, TiffanyHayden said:

What are Central Banks doing as all of this is happening? Why do they need to exist?

Christ almighty Tiff, where are you taking this conversation? I don’t see the relevance of what Central Banks are doing and the point of their existence, has to do with the supply and demand of an asset and the influence that has on its price.

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30 minutes ago, jbjnr said:

Even if cars were free (but limited in number), taxi drivers would pay to own them because they can earn money from giving people rides.

This is an excellent point in my opinion.  Thanks for that post...  it is all very well said I think.  

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3 hours ago, TiffanyHayden said:

I also don't expect MM's to suddenly start purchasing XRP when so many people are perfectly willing to allow exchanges to have complete control over their holdings, interest free. Millions and millions and millions of XRP is just sitting idle at exchanges waiting for somebody who can find a way to make money off of it.

You say this like it's a problem.

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4 hours ago, TiffanyHayden said:

I also don't expect MM's to suddenly start purchasing XRP when so many people are perfectly willing to allow exchanges to have complete control over their holdings, interest free. Millions and millions and millions of XRP is just sitting idle at exchanges waiting for somebody who can find a way to make money off of it. 

 

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Tiffany am I correct in saying that holding XRP will not create a substantial amount of return by itself, but how you leverage XRP as a utility is where the benefit really comes from? So rather than being a HODLer, we should be putting our XRP to work for us to generate personal gain by becoming a market maker ourselves?

There have also been a lot of Ripple funded Xpring projects that have tried to find utility value in XRP but have all gone bankrupt in the process.  :S

Im not sure I completely understand what you are saying but I believe there is a lot of merit to what you have to say. Thanks for your patience and chiming In to help us see the light. 

Edited by Scout
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12 minutes ago, Julian_Williams said:

The XRP is not "returned right after".  The XRP goes from America and lands in China, where (because of imbalances in trade) they build up.  The Chinese exchange paid X + TC (transaction Charge).  So the XRP has to be bought back by America at a later time at X + TC +TC2 = Y. 

Every corridor has to have an exchange with stock of XRP at each end, on sale within narrow spreads.  The spreads narrow as the price accrues upwards.  So for high value or high vol transactions you have to have high value XRP

The only useful stock is the XRP that is available in the narrow band of spread that is being utilised.  It is no good to use XRP that is over priced. 

These are THE 3 KEY things that so many overlook. Yes there is 50billion not in escrow, ... but only a fraction is available at a "proper" price to facilitate payments or remittances, ...

I'm not a believer in a +100$/XRP valuation though, which many expect if they understand those key things.

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14 minutes ago, SquaryBone said:

These are THE 3 KEY things that so many overlook. Yes there is 50billion not in escrow, ... but only a fraction is available at a "proper" price to facilitate payments or remittances, ...

I'm not a believer in a +100$/XRP valuation though, which many expect if they understand those key things.

Also you should mention that the avaible XRP differ from Gateway to gateway( for example Bitso is one gateway) . It is not 1 giant pool .So one also should know that the avaible xrp are torn between gateways, private exchanges, merchants and lets call them investors (holder). What I dont know is if a corridor(USD /MXN for example) can have different gateways ?(in my view it is possible but not likely).

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1 minute ago, Talinos said:

Also you should mention that the avaible XRP differ from Gateway to gateway( for example Bitso is one gateway) . It is not 1 giant pool .So one also should know that the avaible xrp are torn between gateways, private exchanges, merchants and lets call them investors (holder). What I dont know is if a corridor(USD /MXN for example) can have different gateways ?(in my view it is possible but not likely).

I believe that's also in the 3 points that I highlighted, isn't it?

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7 hours ago, jbjnr said:

Buys and sells of XRP are made with a spread of some basis points. When $1Billion per day is being transferred around the globe using ODL even at 10basis points spread, someone is earning $365million per year just off the fees. This gives xrp an intrinsic value. Even if cars were free (but limited in number), taxi drivers would pay to own them because they can earn money from giving people rides. Market makers will compete for this income and this gives xrp its value. The more xrp that is locked away and not being used for liquidity, the less is available for cross border transfers and the higher the 'price'. As price rises, investors will lock more up, this will in turn drive up the price via competition for the remaining xrp. ODL provides a floor price below which XRP should not fall and the floor price is directly proportional to ODL volume (and circulating tokens).

Nice taxi analogy there - simple but elegant!

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https://www.businessinsider.com/heres-how-much-money-there-is-in-the-world-2017-10

According to this article 5t - 80t move every day.

If we stick with the 5t

With 100,000,000 in xrpl flows we are at like .00002% global flow. 

I think once we get closer to 1 percent or more the value and cost of 1 xrp should be substantialy higher. Fingers crossed.

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53 minutes ago, Drew said:

https://www.businessinsider.com/heres-how-much-money-there-is-in-the-world-2017-10

According to this article 5t - 80t move every day.

If we stick with the 5t

With 100,000,000 in xrpl flows we are at like .00002% global flow. 

I think once we get closer to 1 percent or more the value and cost of 1 xrp should be substantialy higher. Fingers crossed.

Well we need to get there :) There's no guarantee. But yeah, fingers crossed , that's all we can do :)

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2 hours ago, Talinos said:

Can't find anything about the possibility of a second gateway for a corridor . :JC_thinking: 

True. The key to me is that XRP will be spread over a huge amount of wallets/entities and so there will be way less XRP available on the market at the right price than many think. Indeed in each corridor there could be different gateways. But for coming years I'd expect Ripple focusing on 1 gateway per corridor. Getting more corridors up is key to get the network effect going.

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