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XRP Global Reserve Currency


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32 minutes ago, Julian_Williams said:

Take his arguments, unpack them and tell us where you think his analysis is wrong and why?  That way you really will show why he is a "moron" in your opinion.

I like @galgitron , sometimes his writing style is a bit aggressive, but in crypto with all the hyper aggressive BTC maxies, I think that is a reasonable tone.

I agree that Bitcoin will eventually die

  1. it has no feature set other than "moving BTC between wallets"... XRPL has so many features that I wrote the other day that I think you could create an Option for XRP on XRPL without an external smart contract platform like Flare and their Trustless Gateways.
  2. Financially (ignoring the tech innovation), it is a Ponzi scheme. The defining characteristic is that the only way to get your money out (or make money) is to take it from someone else, aka "the greater fool". I said when it hit $200, and still believe that it is essentially worthless.
  3. The power consumption for Mining - only makes sense back when Distributed Ledger Technology was brand now and better methods ie Consensus had yet to be created.
  4. China controls the 51% needed to Double Spend.

The best thing for BTC is that the institutional retail and regulatory boxes have been checked. This is going to lead to a bunch of investment banks/brokers will make a bunch of money facilitating Retail investors who will be duped into buying BTC.

The other best thing for BTC is that the US is holding back on regulations and CBDC, Thus the US is handing global economic monetary power to China faster than I would have expected. To me, it looks like the US is just going to sit there and let China take over without even trying to defend it's position in the global monetary system as the Global Reserve Currency. I'm moving further and further up the scale from aware, to concerned, to worried, to oh sh!t, to maybe I should seek opportunities that are not denominated in USD for my life... so maybe I will use XRP as my personal store of value.

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You are correct, it is an idiotic problem to be solved. You need to do more research

Um, er,  isn’t that exactly the case?  Just as in olden days of inventory...  back then warehouses had stacks of items that were there for future need.  Just-in-time inventories changed all that.  Exa

whether you like Galgitron or not, and plenty do not like his style of writing, he is far from being a moron.  He is a very original and intelligent thinker who works from first principles.  As such h

I'd be interested if anyone in here has time to understand this idea about creating an Option on XRPL without a smart contract.

Alright, this is going to be quick and dirty, but I think an "Option" of sorts can be made directly on XRPL without the need for another smart contract platform.

  • You need a few "things" to design the business logic (smart contract) for an Options contract.
  • You need a way to account for Time, and Contract Expiration. (see Escrow & Checks amendments)
  • You need a way to enforce execute an "in the money" option at or before the Expiration. (see Orderbooks & MofN + maybe some @ripplerm methods that predate MofN)
  • You need a way to enforce  the expiration of an "out of the money" option as worthless (get it off XRPL)
  • You need a way to represent the Option Contract on XRPL (see IOUs).

Here is what I'm thinking, again this is quick and dirty. 

  1. Wallet A issues and Option IOU, lets pretend it is a Call option with a strike of $10 for 100 XRP or other IOU on XRPL.
  2. Wallet B buys the Option IOU, this TX is when the Premium is transferred from the Buyer to the Seller of the Option IOU
  3. Wallet A places a TX on the Orderbook of Option IOUs to sell the Underlying XRP/IOU for the $10 Strike price, this sell order remains open on the Orderbook, but is Unfunded because...
  4. Wallet A places the 100 XRP into Escrow,  with the Escrow ending at the time of Expiration. (I get that only XRP can be used in Escrow, Checks may also functionally work for IOUs)
  5. Escrow Expiration happens, and the XRP are deposited back into Wallet A
  6. a - In the Money - Wallet B places a buy order at $10 for 100 XRP/IOU. Wallet B should redeem the worthless IOU back to Wallet A to get it off of the XRPL.

      6. b - Out of the Money - Wallet A's owner either cancels the sell order 100 XRP for IOU @ $10, or places a counterweight offer to consume their previous Sell order (and get it off of XRPL), or If the wallets are blackholed at inception, some MofN methods could be used the counterweight the existing Sell order and clear the Orderbook for the IOUs.

I have a few different thoughts rattling around my head regarding other methods that could be used to effectuate this Option IOU on XRPL situation. Blackholing the addresses has pros & cons, the addresses are left on XRPL, and the Reserve XRP is lost by both participants. Checks have an Expiration, and can be sent from a wallet that is Underfunded (because the collateralizing XRP are in Escrow). My main issue is mostly around 6.b , how do you undo an Out of the Money option?

Food for thought. We need Options, and other derivatives in Crypto. Obviously Smart Contract platforms are going to enable more sophisticated derivative contract terms, but I'm thinking that a basic American Style Option can be effectuated on XRPL without the need for an external Smart Contract platform.

MofN could be used also, because both the buyer and seller could sign a TX, as well as a 3rd wallet which would sign at inception or expiration of the IOU/Option contract. Then if the Option is in/out of the money, either the buyer of the option can execute the MofN TX and claim the underlying collateral, or the seller of the option can choose to not sign the TX. This would work if both wallets were blackholed, yet the TX blobs were created before discarding the Master key.  I'm not 100% sure on this, but it really seems like it is possible.

---

Ive thought about this some more, just in the back of my head, and i'm leaning more towards the MovN method rather than the Orderbook method. But an Orderbook would still need to be used.

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1 hour ago, KarmaCoverage said:

I like @galgitron , sometimes his writing style is a bit aggressive, but in crypto with all the hyper aggressive BTC maxies, I think that is a reasonable tone.

I agree that Bitcoin will eventually die

  1. it has no feature set other than "moving BTC between wallets"... XRPL has so many features that I wrote the other day that I think you could create an Option for XRP on XRPL without an external smart contract platform like Flare and their Trustless Gateways.
  2. Financially (ignoring the tech innovation), it is a Ponzi scheme. The defining characteristic is that the only way to get your money out (or make money) is to take it from someone else, aka "the greater fool". I said when it hit $200, and still believe that it is essentially worthless.
  3. The power consumption for Mining - only makes sense back when Distributed Ledger Technology was brand now and better methods ie Consensus had yet to be created.
  4. China controls the 51% needed to Double Spend.

The best thing for BTC is that the institutional retail and regulatory boxes have been checked. This is going to lead to a bunch of investment banks/brokers will make a bunch of money facilitating Retail investors who will be duped into buying BTC.

The other best thing for BTC is that the US is holding back on regulations and CBDC, Thus the US is handing global economic monetary power to China faster than I would have expected. To me, it looks like the US is just going to sit there and let China take over without even trying to defend it's position in the global monetary system as the Global Reserve Currency. I'm moving further and further up the scale from aware, to concerned, to worried, to oh sh!t, to maybe I should seek opportunities that are not denominated in USD for my life... so maybe I will use XRP as my personal store of value.

Very interesting and I agree with every word.  I think Bitcoin will go on growing for some while because newbies don't look that hard before buying the most recognisable brand, and whilst that lasts it is a great way to make money from and investment.  But I think, like you, in the end it is a Ponzi scheme and the late arrivers in will get very badly hurt.

Edited by Julian_Williams
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26 minutes ago, Julian_Williams said:

Very interesting and I agree with every word.  I think Bitcoin will go on growing for some while because newbies don't look that hard before buying the most recognisable brand, and whilst that lasts it is a great way to make money from and investment.  But I think, like you, in the end it i9s a Ponzi scheme and the late arrivers in will get very badly hurt.

Selling out to the Greater Fool.

I've never had any BTC, and even though I could personally make some capital gains, I would feel like it was dirty money because my "profits" are not earned from doing anything, other than ripping off the Greater Fool.

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19 minutes ago, KarmaCoverage said:

Selling out to the Greater Fool.

I've never had any BTC, and even though I could personally make some capital gains, I would feel like it was dirty money because my "profits" are not earned from doing anything, other than ripping off the Greater Fool.

I have exactly the same feelings.  When I first started I bought £200 worth and actually sold them at the ATH, making a profit of £100.  Since then I have avoided the tokens because the money made would, in my opinion, eventually be coming from the pockets of innocents duped further down the line. 

If I were ruthless I would be buying Bitcoin and ETH (which might have a future, but I do not think so) now.

Edited by Julian_Williams
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3 hours ago, WarChest said:

What were David's reasons for saying that, can anyone suggest ?

We are moving from a single USD Global Reserve Currency (centralized) towards a (decentralized but not distributed) Global Monetary Infrastructure. The phrasing you hear is "A Multi-Polar World", which basically means that the global monetary pie will be dominated by several Global Reserve Currencies (USD, EUR, JYP, etc) 

I would have put XRP in that list, except that it is not a CB liability, like a CBDC would be. So inter-connecting those CB liability currencies (digital or not) and this has the potential to place XRP in the role of being a Global Monetary Common Denominator. Mathematically, a "common denominator" is used to connect various other denominators and whatever they are measuring. In fact synonyms for "common denominator" would be Global Reserve Currency, and Bridge Currency.

Re David's comments (that I have not heard yet) my guess is that, like I have heard him say before, "all global transactions happening on XRPL is not feasible". This is one of the reasons ILP was created. With ILP comes the ability to layer ledgers because they can be inter-connected / networked together. If XRP were to become a Global Common Denominator for CBDCs (which I see as possible), it would put XRP at the top of the list, or visually flip this image upside down, and XRP would be playing the role of (a foundation upon which to leverage up, creating elasticity), Gold when the Gold Standard was designed at Brinton Woods.

image.png.8a2227d2f9e821a0e950b3b4c0cf1714.png 

Just to clarify the direction of TX flows, they go from bottom up. So the "private sector" aka Commercial Banks will process most of the transactions. They will net out amongst each other "banking system" and then finally Clear the TX flows domestically on the CB's balance sheet. From there it hits the BIS and SDRs where the CB's net and clear amongst each other. 

I inserted the SC "stable coins" at the international layer, because functionally they can preform that in a trustless way. But they are a mix between CBDC's which are issued on the CB's ledger, and Gold/XRP. This is because the Stable Coins, are actually collateralized by DAs (Digital Assets) thus they are ultimately issued on Distributed Ledgers, like XRPL and BTC and ETH, etc.

Having said that, is designed to play this most foundational layer so my opinion is that Yes XRPL can handle all of the worlds TX flows, but only what flows up to the top of the chain, otherwise you would explode the network, and reintroduce the original problem DLT solves for... Centralization, aka a single Global Reserve Currency.

Edited by KarmaCoverage
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5 hours ago, Julian_Williams said:

You may not agree with Galgitron's predictions in the article you quote, but they are his reasonable reasons for believing Bitcoin will eventually be "dethroned".  To simply say his arguments are wrong because the  writer (in your opinion, and you give no reasons) is a moron is not to make a case, it is just to denigrate.

Take his arguments, unpack them and tell us where you think his analysis is wrong and why?  That way you really will show why he is a "moron" in your opinion. 

 

Here are some garbage excerpts from the great Galgitron who seems to be loved and respected here for some reason: 

 

Quote

USING XRP ELIMINATES THE NEED FOR NOSTRO ACCOUNTS!!!  That's right, the billions upon billions of dollars sitting idle in foreign bank accounts that are required for SWIFT and even Ripple's messaging software, can be recouped and reinvested by the banks, allowing them to make BILLIONS more from that money! And not only that money is freed up, but money that is currently locked 'in-flight' for 3-5 days during SWIFT transactions, TRILLIONS of dollars, will also be liberated so the recipient can spend that money again immediately.

Instead of just one transaction a week, that same money can be re-used for potentially THOUSANDS of transactions in a week. The effect on the global economy will compound exponentially; equivalent to the effect of mail evolving to email. Imagine trying to step backwards to using paper mail to support the equivalent of daily email flow


http://galgitron.net/Post/Heres-how-and-why-XRP-will-be-used-by-bank

 

The idea that billions upon billions of dollars are sitting idle in bank accounts waiting to transfers is idiotic.  Nostro accounts are simply a home bank having an account in a foreign bank account to do business and facilitate trade.  Before the Euro for example, you may have needed to nostro accounts in every country in the eurozone.  It is utterly low IQ to think that you needed to maintain hundreds of millions or billions in EVERY nostro bank account across those countries.  No, the home country bank just has a nostro account to do business.  There is no way banks let hundreds of billions of dollars sit idle.  Actually the opposite, Banks will lend out and invest as much money as they possibly can putting consumer savings at risk that's why they are mandates by the FED or international minimum capital adequacy ratios set by agreements like BASEL III  requiring banks to meet a minimum reserve requirement threshold.  So no, banks don't need Ripple and XRP's help to free hundreds of billions in nostro accounts.  This narrative was propagated by Ripple and you have to be entirely low IQ to fall for this.

 

Quote

Bitcoin is the shoe-shop; a rickety hum-drum collage of best-intentions, creaky doors, and a doppleganger outlet on every corner. People have been coming here for years, and their shoes have always been fixed in less than a week. Why rush a good thing?

Ethereum is Starbucks, big, high-strung, very high-tech, but once you get past the caffeine high, it's long lines, expensive, and the boutique charm is wearing off. Don't get me started about the music.

Ripple is SpaceX. Hundreds of the best people in the world. Companies, governments, militaries, all foaming at the mouth at the possibilities. You want that ******* car in orbit around the sun in 8 minutes? Done.

http://galgitron.net/Post/The-Myth-of-Market-Cap---Version-2

 

And besides being gullible and low IQ to gobble up Ripple's hype, Galgitron's writing is also low IQ childish drivel

 

Quote

XRP is pretty damn shiny. The whales are endlessly doing whatever they can to foment the perception that XRP isn’t a good investment. They know people don’t pay attention to true ‘value’, such as Ripple’s expansion, or the incredible rate of ODL (On-Demand Liquidity) adoption, etc., no, people only look at that one stupid ******* number, the "price", and THE WHALES CONTROL IT, and by extension, they control the sheeple’s minds, because sheeple are ******* stupid and greedy, and will believe any picture the whales choose to paint in the prices.

Whales have been beating down the price of XRP for a very long time, which is facilitated by them procuring XRP in slow times, but when XRP starts to heat up, you can vividly witness both the Bitcoin volume pick up to match as the whales buy up BTC to increase the price, and simultaneously the XRP price getting hammered down as they sell their XRP war-chest. The whales just have SO MUCH ******* MONEY, that they can keep these invisible sell walls going until these price advances burn out.

http://galgitron.net/Post/Weekend-at-Bitcoins

 

Not only is Galgitron low IQ but he lives in some delusional world believing that whales have been suppressing the price of XRP for years because they believe XRP is so precious

xrpgollum.jpg

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1 hour ago, fatlever said:

The idea that billions upon billions of dollars are sitting idle in bank accounts waiting to transfers is idiotic.

Um, er,  isn’t that exactly the case?  Just as in olden days of inventory...  back then warehouses had stacks of items that were there for future need.  Just-in-time inventories changed all that.  Exactly the same thing happens (and for exactly the same reasons) with money when the transfers take a long time and the demand can’t be exactly known in advance.

I personally have had crypto purchases held up while the Nostro account of the sending FI went dry.  The next few days went by while the money to top up the Nostro account wound its weary way over to the FI’s account.  To avoid that type of situation institutions have needed to have projected demand plus a buffer sitting in the Nostro.  Your statement is incorrect.

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3 hours ago, BillyOckham said:

Um, er,  isn’t that exactly the case?  Just as in olden days of inventory...  back then warehouses had stacks of items that were there for future need.  Just-in-time inventories changed all that.  Exactly the same thing happens (and for exactly the same reasons) with money when the transfers take a long time and the demand can’t be exactly known in advance.

I personally have had crypto purchases held up while the Nostro account of the sending FI went dry.  The next few days went by while the money to top up the Nostro account wound its weary way over to the FI’s account.  To avoid that type of situation institutions have needed to have projected demand plus a buffer sitting in the Nostro.  Your statement is incorrect.

Nailed it

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14 hours ago, Julian_Williams said:

I think DS has said XRP could not handle being a world currency.   I think XRP is already positioned to be a very big player as a cross border currency enabler used in multiple ways, and if this come to fruition the tokens would be valuable as an international currency and as a store of value. 

Digital money will happen, just like digital telecoms already happened.

Indeed. No crypto can (for now) and likely will without layer 2 solutions. DS has said that it doesn't scale linearly when having high millions or billions of accounts. That's why they added the addendum to be able to remove accounts. That's why I find all this so ridiculous that youtubers are acting like it will be although one of the key designers of the XRP ledger tells them it can't. They're delusional. 

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On 10/22/2020 at 8:17 PM, fatlever said:

 

Here are some garbage excerpts from the great Galgitron who seems to be loved and respected here for some reason: 

 

 

The idea that billions upon billions of dollars are sitting idle in bank accounts waiting to transfers is idiotic.  Nostro accounts are simply a home bank having an account in a foreign bank account to do business and facilitate trade.  Before the Euro for example, you may have needed to nostro accounts in every country in the eurozone.  It is utterly low IQ to think that you needed to maintain hundreds of millions or billions in EVERY nostro bank account across those countries.  No, the home country bank just has a nostro account to do business.  There is no way banks let hundreds of billions of dollars sit idle.  Actually the opposite, Banks will lend out and invest as much money as they possibly can putting consumer savings at risk that's why they are mandates by the FED or international minimum capital adequacy ratios set by agreements like BASEL III  requiring banks to meet a minimum reserve requirement threshold.  So no, banks don't need Ripple and XRP's help to free hundreds of billions in nostro accounts.  This narrative was propagated by Ripple and you have to be entirely low IQ to fall for this.

 

 

And besides being gullible and low IQ to gobble up Ripple's hype, Galgitron's writing is also low IQ childish drivel

 

 

Not only is Galgitron low IQ but he lives in some delusional world believing that whales have been suppressing the price of XRP for years because they believe XRP is so precious

xrpgollum.jpg

Is that all you have?

On all three points you are demonstrably wrong. 

Point 1. Banks have nostro and vostro accounts - the money is separated as to whether it is at home or languishing abroad.  The amount of idle money has been estimated as 20 trillion (I think that was the figure?) and growing.  The system is so expensive to run that they have given up running FX services to some underdeveloped smaller countries.

Point 2. Bitcoin is slow, expensive and cannot be scaled without fixes like Lightening, which abandons the principles of blockchain decentralisation.  So is ETH. (but I believe some fixes are in the pipeline?)

Point 3.  It seems investors are obsessed by price movements more than doing research in which coins have long term potential.  Hence after a 33,000% ATL XRP had to take a longer to consolidate than other currencies that had gone up an order of magnitude less.  Everyone then began judging XRP, with its expanding ecosystem and technological advantages, as a failure because it did not re-gain in price during 2018-19 

I do not like to accuse people of having low IQ's, because actually it is lack of common sense that make people behave stupidly. Perhaps I will just leave it at saying your 3 responses lack due diligence and common sense. 

Edited by Julian_Williams
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5 hours ago, SquaryBone said:

Indeed. No crypto can (for now) and likely will without layer 2 solutions. DS has said that it doesn't scale linearly when having high millions or billions of accounts. That's why they added the addendum to be able to remove accounts. That's why I find all this so ridiculous that youtubers are acting like it will be although one of the key designers of the XRP ledger tells them it can't. They're delusional. 

I think you have to accept that you tubers are going to be into running up their audiences by using click bait.  They are often delusional themselves.  Probably most people trying to make a quick buck without working will be delusional, and that is the attraction of investing in crypto.  Crypto attracts delusional people and most of them get their fingers burnt.

It is predictable that XRP, perhaps more than other crypto, attracts delusional investors and hype merchants.  (Actually I would argue the biggest delusion is amongst the Bitcoin maxi tribe).  But it would be a mistake to take these people, who are really fluff, as indicative of the seriousness of the product.  In XRP's case a bridging currency that enables ODL.  

Digital money, and DLT/ODL/Micropayments/Smart Contracts/DeFI have been released on to the world and will never go back in the box.  Anyone who gets in early on buying the successful tokens that will be used in this expanding market will be very rich.  Personally I cannot see XRP being wiped out in the race to service this sector, so for me buying and holding XRP is not delusional at all.  It is taking a stake in new technology that is inevitable.  I accept the risks and I think my expectations are not "delusional", although I can see I have many fellow travellers who are delusional and will get their fingers burnt.

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