XRP: Impact of Competing CryptoCurrencies inside Ripplenet

[MountainGoat]

May I ask a novice question? As I am only just entering the cryptoverse, I am very attracted to the utility of the Ripple network and what I thought would be the proprietary use of XRP for Ripple transactions ... what happens to XRP utility / value when alternate tokens/currencies are used across Ripplenet?

Given a broadening network of token/currencies, why select one over another? Utility? This is the attraction for XRP - in my view. Liquidity? Absolutely, I can see that. Although fractioning could lead to almost limitless liquidity - no? What about Value? Isn't value correlated or coupled to "something"? So analyzing these correlations, if a transaction begins by sending "X" amount from Point A to Point B, there has to be some value underlying correlation, i.e. Dollar to Yen, Yen to Baht, etc. In a proposed ODL exchange system the “cryptoken” is nothing more than a surrogate of exchange on value representing the going value translation of the currency pairs in the transaction – and, by necessity a liquid, pre-correlated surrogate, right?

If “crypto-crowding” is allowed within the system (Ripple), if one cryptoken becomes more “popular” than another, wouldn’t the less popular cryptoken(s) fall out of favor thereby debasing those surrogates? And, if respective CBDCs are directly programmed into the Ripple network, doesn’t XRP and any other  privatized cryptokens become nothing more than novelty investments – like artwork, baseball cards, or tulips?

[7Sol]

On 12/7/2020 at 12:07 AM, MountainGoat said:

if one cryptoken becomes more “popular” than another, wouldn’t the less popular cryptoken(s) fall out of favor thereby debasing those surrogates?

In my view such scenario is as likely as people all driving the same brand of car.

When focusing on the technicals underlying each crypto, I remark each attempts to solve a specific use case.

I see cryptos are at the same stage as the early days of automobile. There were many manufacturers, many vanished, a few remain, new ones came along.