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Question for David Schwartz: If XRP Hit $5, Would Liquidity Be Enough for Holders of Over 30k XRP?


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I think we should run the experiment and see.    

5 dollar? Well maybe in the year 2130. Yeah you read it correct, 2130 and not 2030, because that's the year where i hope xrp wil be at 1 dollar if ever.

Hi @NachoVarga and welcome to XRP Chat.  Unfortunately there have been a lot of people open accounts here and then use them to troll regular users.  I fear that you may have inadvertently triggered @T

Posted (edited)

It's a silly hypothetical question dealing in absolutes: 

“If XRP hit $5, would there be enough liquidity in the market for all of those people who own over 30,000 coins to cash out?”

The common-sense answer is, "No!" because XRP hitting $5 means a temporary market cap of 2 trillion USD for XRP, which is over 8x larger than the current cumulative market caps on coinmarketcap.com of all 5,474 cryptos, and what are the odds that "Everyone who owns 30,000+ XRP will try to cash out at [exactly] $5."?  The selling pressure of everyone with 30,000+ XRP trying to sell at exactly $5 would drop buying pressure very quickly because the vast majority of hodlers are in the 30,000+ XRP ownership range, and what are the odds that you have a counter-pressure of buy orders at $5 to balance out that selling pressure?  If current proportions of XRP ownership stay the same, that means over 95% of all non-escrowed XRP. would try to be sold off at $5.   That's an extremely large sell wall at $5. 

The answer is, "Next to zero." in a literal sense, or infinitesimally small odds. 

A sensible way to phrase this question is, "If XRP hits $5 would those people remaining who own 30,000+ XRP in non-escrowed accounts and are able to sell (no restrictions like Ripple partners, Jed, etc.) and want to cash out at $5 be able to cash out?" 

Then you get much better odds and a much more sensible answer that is not definitively, "No!"

And if you rephrase it to, "If XRP hits $5 would those people remaining who own 30,000+ XRP in non-escrowed accounts and are able to sell (no restrictions like Ripple partners, Jed, etc.) and want to cash out at $5 be able to cash out eventually?" 

The odds just keep getting better if Ripple succeeds with its plans, but this makes XRP sound more like security, so lol, we just need more and more 3rd parties independent of Ripple to keep building on top of XRP. 

 

Edited by enrique11
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Posted (edited)

This is a silly question. If XRP were $5, then there would be an equilibrium at that price between buyers and sellers. If there were not an equilibrium, then the price would not be $5. One could ask the same question about $0.20. There is nothing magical about $5 or 30K XRP. I feel like the person asking this question is revealing their XRP holdings along with their target price..:)

Edited by xrp_sea
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1 hour ago, enrique11 said:

It's a silly hypothetical question dealing in absolutes: 

“If XRP hit $5, would there be enough liquidity in the market for all of those people who own over 30,000 coins to cash out?”

The common-sense answer is, "No!" because XRP hitting $5 means a temporary market cap of 2 trillion USD for XRP, which is over 8x larger than the current cumulative market caps on coinmarketcap.com of all 5,474 cryptos, and what are the odds that "Everyone who owns 30,000+ XRP will try to cash out at [exactly] $5."?  The selling pressure of everyone with 30,000+ XRP trying to sell at exactly $5 would drop buying pressure very quickly because the vast majority of hodlers are in the 30,000+ XRP ownership range, and what are the odds that you have a counter-pressure of buy orders at $5 to balance out that selling pressure?  If current proportions of XRP ownership stay the same, that means over 95% of all non-escrowed XRP. would try to be sold off at $5.   That's an extremely large sell wall at $5. 

The answer is, "Next to zero." in a literal sense, or infinitesimally small odds. 

A sensible way to phrase this question is, "If XRP hits $5 would those people remaining who own 30,000+ XRP in non-escrowed accounts and are able to sell (no restrictions like Ripple partners, Jed, etc.) and want to cash out at $5 be able to cash out?" 

Then you get much better odds and a much more sensible answer that is not definitively, "No!"

And if you rephrase it to, "If XRP hits $5 would those people remaining who own 30,000+ XRP in non-escrowed accounts and are able to sell (no restrictions like Ripple partners, Jed, etc.) and want to cash out at $5 be able to cash out eventually?" 

The odds just keep getting better if Ripple succeeds with its plans, but this makes XRP sound more like security, so lol, we just need more and more 3rd parties independent of Ripple to keep building on top of XRP. 

 

$5.00 x 100bln = 500bln, not 2 trillion. Rounding up current supply of 45bln that makes a MC of 225bln, so about 50bln more than BTC has right now, and lower than BTC was at peak.

Besides the math there are a lot of flaws in your logic of the markets. If XRP would suddenly this second be $5.00 then yes everybody sells. That's why prices go up steadily, and when FOMO comes in more agressive. But it creates a constant equilibrium up or down.

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Posted (edited)
24 minutes ago, Caracappa said:

$5.00 x 100bln = 500bln, not 2 trillion. Rounding up current supply of 45bln that makes a MC of 225bln, so about 50bln more than BTC has right now, and lower than BTC was at peak.

Besides the math there are a lot of flaws in your logic of the markets. If XRP would suddenly this second be $5.00 then yes everybody sells. That's why prices go up steadily, and when FOMO comes in more agressive. But it creates a constant equilibrium up or down.

Yeah, the math is off by a factor of 10, but not the logic. No, what are the odds of XRP jumping from $0.20 to $5 suddenly? - very, very small.  No, not everybody sells because most people would not have the XRP on exchanges and place sell limit orders - we're talking 95% of all non-escrowed XRP being sold given proportion of ownership stays the same.  Not everyone will sell at $5, especially those that own 95% of XRP in circulation.

Edited by enrique11
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Hello guys, im new here and i wonder if Ripple can be valued at 2000$ per coin.

I follow this ripple insider called babacugs. He is on twitter and he stated that ripple is already agreed to be set at that price. Something about a meeting in davos and marvin gey and something about a bearguy who was giving insider informations on social media.

Why are the targets here different than on other social media channels?

I want it to be at 2000$ 

Edited by NachoVarga
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17 minutes ago, NachoVarga said:

Hello guys, im new here and i wonder if Ripple can be valued at 2000$ per coin.

I follow this ripple insider called babacugs. He is on twitter and he stated that ripple is already agreed to be set at that price. Something about a meeting in davos and marvin gey and something about a bearguy who was giving insider informations on social media.

Why are the targets here different than on other social media channels?

I want it to be at 2000$ 

Well done, don’t think I’ve blocked anyone after reading only one of their posts 👍

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1 minute ago, Trentsteel said:

Well done, don’t think I’ve blocked anyone after reading only one of their posts

Can you explain to me why this triggered you to block me ?

Im very keen to learn new facts and theories and im also very interested how the valuation of 2000$ will be met.

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1 hour ago, NachoVarga said:

Hello guys, im new here and i wonder if Ripple can be valued at 2000$ per coin.

I follow this ripple insider called babacugs. He is on twitter and he stated that ripple is already agreed to be set at that price. Something about a meeting in davos and marvin gey and something about a bearguy who was giving insider informations on social media.

Why are the targets here different than on other social media channels?

I want it to be at 2000$ 

Welcome to XRPchat @NachoVarga ... The fastest way for XRP to reach a price level of $2,000 is to start paying that price.

That being said, you're very welcome to buy my stash of XRP at a price of $2,000 per XRP.

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15 hours ago, NachoVarga said:

Can you explain to me why this triggered you to block me ?

 

Hi @NachoVarga and welcome to XRP Chat.  Unfortunately there have been a lot of people open accounts here and then use them to troll regular users.  I fear that you may have inadvertently triggered @Trentsteel troll antenna with your questions.  While everyone here I'm sure would love the price of XRP to rise exponentially, the chances of it going that high is generally not considered a possibility, hence I think, Trentsteel's reaction to your question.

The good news is that you have come to the right place to research information on XRP and get a better idea of the what's happening in the XRP/Ripple ecosystem.    Have a good look around and don't be afraid to ask questions.  Show yourself to be a genuine interested party and I am sure there will be lots of people here willing to help you out.

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On 5/16/2020 at 1:13 PM, NachoVarga said:

Can you explain to me why this triggered you to block me ?

Im very keen to learn new facts and theories and im also very interested how the valuation of 2000$ will be met.

in simple terms the insider info people post on social media is generally complete bollox so by saying you follow all of them it will get many rolling their eyes.

IMO nothing wrong with a bit of optimism but worth taking the fantasies with a large pinch of salt & just see the funny side.

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