Jump to content
drmount

Can the value of XRP be "set"?

Recommended Posts

I don't know if this could be the case, but could some authority (IMF? Ripple? BIS?) just set the value of XRP at some number, arbitrarily?

Share this post


Link to post
Share on other sites

It would have to be along the lines of the ‘Shane Ellis Theory’ but I think it’s highly unlikely.

In an unregulated market and with a monsterous  amount of money and at huge cost, it is possible. But many eyebrows would be raised.

The price is currently sufficient for the current amount of ODL. Marathon, not a sprint.

Share this post


Link to post
Share on other sites

Yeah. Real easy like. You get all the central banks at once to declare it is going to be the new global reserve currency.

The price will skyrocket. Maybe you can't just choose a specific price at will. But you damn sure can make it worth a shitload more than it is now in the blink of an eye.

Share this post


Link to post
Share on other sites

You would need an entity to be willing to ALWAYS purchase at the set price.

Also with XRP's limited supply you would have to somehow force people not to trade for a more expensive price. 

Makes no sense. So no.

 

Maybe PutinCoin could have. Or Petro coin :D

Share this post


Link to post
Share on other sites

I think everyone is missing the idea of a set price.

To keep it simple, a set price in an open market means that the asset is always trading for the same price. That means you would have a set up like USDT or USDC where the price is always $1.00.

A set price for digital assets means that you essentially have a stable coin.

If Ripple wanted to do this for XRP, say 1 XRP = $2.00, then Ripple would have to create a mechanism in the market similar to stable coins to automatically put buy and sell pressure on the market so that XRP always stays close and/or returns to $2.00. if the price goes to $2.05 then the algorithm introduces more sell pressure to push the price down to $2.00 and if the price dips to $1.95 then the algorithm introduces more buy pressure to get the price up to $2.00.

Share this post


Link to post
Share on other sites
10 hours ago, drmount said:

I don't know if this could be the case, but could some authority (IMF? Ripple? BIS?) just set the value of XRP at some number, arbitrarily?

The value of a currency can depend on:

  1. the free market (supply vs demand): the currency is said to be freely floating
  2. another asset/ currency: the currency is said to be fixed or pegged

Historically, from 1944-71, following the Bretton Woods conference, most world currencies were pegged to the USD which in turn was pegged to Gold.

Now, most worldwide currencies are floating, meaning that their values depend on the interaction between supply and demand. 

As regards cryptos, I advise you to check the model of stablecoins if you are looking for a specific use case. 

Share this post


Link to post
Share on other sites
6 hours ago, AlejoMoreno said:

I think everyone is missing the idea of a set price.

To keep it simple, a set price in an open market means that the asset is always trading for the same price. That means you would have a set up like USDT or USDC where the price is always $1.00.

A set price for digital assets means that you essentially have a stable coin.

If Ripple wanted to do this for XRP, say 1 XRP = $2.00, then Ripple would have to create a mechanism in the market similar to stable coins to automatically put buy and sell pressure on the market so that XRP always stays close and/or returns to $2.00. if the price goes to $2.05 then the algorithm introduces more sell pressure to push the price down to $2.00 and if the price dips to $1.95 then the algorithm introduces more buy pressure to get the price up to $2.00.

I second that. You'd also lose purchasing power when XRP is set to a specific number of dollars and the dollar devalues.

Share this post


Link to post
Share on other sites
On 3/17/2020 at 11:12 AM, drmount said:

I don't know if this could be the case, but could some authority (IMF? Ripple? BIS?) just set the value of XRP at some number, arbitrarily?

This was my exact question 2 years ago. See my post:  "Why does the value of Ripple (XRP) have to change?" There have been many responses!

Share this post


Link to post
Share on other sites
On 3/17/2020 at 1:10 PM, AlejoMoreno said:

so that XRP always stays close and/or returns to

You mean like miguel vias is rigging the xrp market the whole time?

Sure. It works very well as we can see

Share this post


Link to post
Share on other sites
36 minutes ago, DirectorCoulson said:

You mean like miguel vias is rigging the xrp market the whole time?

Sure. It works very well as we can see

I think the market is crap for a lot of reasons but what does Miguel Vías have to do with it?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...