Valuation Models - XRP The Digital Currency Vs. Ripple the Company

[JoelKatz]

8 hours ago, Jun said:

Joel shouldn't ripple locking up billions of xrp have made the price skyrocket in itself?

I don't think so. It reflects no change in our strategy. I was originally opposed to the lock up because I didn't think it would make any difference. It just eliminated one silly bit of FUD about how we could destroy the value of XRP if we wanted to -- but we clearly don't.

[Jun]

Gotcha Joel 

It would have been great to have 2 laptops and compare transfer time between bitcoin and ripple in real time

nothing more would have needed to be said at consensus!

[kanaas]

Gotcha Joel 
It would have been great to have 2 laptops and compare transfer time between bitcoin and ripple in real time
nothing more would have needed to be said at consensus!

That would be a very looooooong and boooooooring show case event [emoji3]

[btald1331]

@JoelKatz

Thanks for all the information. 

There still seems to be a lack of information on which customers intend to use XRP as their tool for cross border payments. Is there a list of customers that are specifically using XRP and how much their stake is vs customers that are only using Ripple's software without holding XRP?

 

[Texaschris]

11 hours ago, Streamliner said:

I'm so excited about potentials that @JoelKatz mentioned!

I was trying to find a way to easily explain the potential of Ripple and XRP. What do you guys think of this?:

 

Snail mail -> Email

Current foreign exchange of money -> XRP

 

 

 

Allow me to once more state the principle concisely for those who don't see it.

As the availability of innovation increases, so to does its use.

When we went from snail mail to email the amount of communication in the world skyrocketed over night.  The increase was exponential.

SWIFT handles 5 trillion daily, 1.2 quadrillion a year.  That's not the liquidity limit, it's the functional limit of the present apparatus.

When all of the down time in escrow is removed, that number will be much larger.

Just looking at present data though: 1.2 quadrillion/100 trillion - 1200.00 USD per unit.  There's inherent stability at that price point.  Much harder to swing 1200 10% than 1.00. (see pic)

So what if that number doubles?  Triples? What if it's exponential?

Don't miss the boat.  Don't sell early. I know this is  twice now that I've made this info available, but I feel like people are really missing the big picture.

 

Edited May 26, 2017 by Texaschris

[Sharkey]

10 hours ago, zerpdigger said:

the money pouring into bitcoin right now from naive amateurs -- speculating for self gain on an out-of-date technology with serious scaling problems -- utterly pales in comparison to the giant stacks of institutional grade mega-bucks waiting patiently to make an entrance, before it smashes a giant Fist of Reality through the paper wall of ignorance that's protecting this suffocating anarchist bubble from getting a much needed dose of fresh air, and sanity

LOVE IT!!!

[JoelKatz]

4 hours ago, btald1331 said:

@JoelKatz

Thanks for all the information. 

There still seems to be a lack of information on which customers intend to use XRP as their tool for cross border payments. Is there a list of customers that are specifically using XRP and how much their stake is vs customers that are only using Ripple's software without holding XRP?

 

We can't disclose details of specific partnerships with approval from the partner. Partnerships have strict NDAs. But it's what you'd expect. They're pretty much all interested in actually using XRP when and where it's cheaper.

See here: 

 

[btald1331]

1 minute ago, JoelKatz said:

We can't disclose details of specific partnerships with approval from the partner. Partnerships have strict NDAs. But it's what you'd expect. They're pretty much all interested in actually using XRP when and where it's cheaper.

See here: 

 

Thanks for getting back with me, and the clarification. It would be illogical of them to not except a cheaper solution than what there using in areas that count.  

[Hodor]

59 minutes ago, btald1331 said:

It would be illogical of them to not except a cheaper solution than what there using in areas that count.

When it comes to money and a sustainable strategic advantage over more expensive rivals, that's when businesses follow "logic."   And that logic will lead them here, to XRP. 

[Mars]

Some of the posters here have a warped sense of entitlement.

[Isziwi]

22 hours ago, Live4xrp said:

The SBI group [..] plans to launch its own such currency, SBI Coin

Hm.. Can you help me to understand this? Could it affect xrp ?

[JoelKatz]

7 hours ago, Isziwi said:

Hm.. Can you help me to understand this? Could it affect xrp ?

I don't know that much about it. We expected to have to compete with coins launched by banks. It really comes down to this: Either the coin is backed (redeemable in fiat) or not.

If it's not, then what advantage do they have over us? We're further along. We have plenty of banks who support what we're doing. We have solid financing. We have an asset that already has value and liquidity. We have the best team in the space. They have ... what?

If it's redeemable in fiat, then it's not neutral. It has counterparty risk, and it's associated with a particular jurisdiction. If it's backed by only one bank, you've reinvented the settlement problem getting back to that bank. Backing by multiple banks creates its own issues. And, of course, you still need cross-currency liquidity, and you have no war chest from the value of the asset to spur liquidity. Would they raise $10 billion to compete with the value of our XRP? This would just be a new market for XRP -- bridging their payments to other fiats.

[vanhalendlrband]

3 minutes ago, JoelKatz said:

I don't know that much about it. We expected to have to compete with coins launched by banks. It really comes down to this: Either the coin is backed (redeemable in fiat) or not.

If it's not, then what advantage do they have over us? We're further along. We have plenty of banks who support what we're doing. We have solid financing. We have an asset that already has value and liquidity. We have the best team in the space. They have ... what?

If it's redeemable in fiat, then it's not neutral. It has counterparty risk, and it's associated with a particular jurisdiction. If it's backed by only one bank, you've reinvented the settlement problem getting back to that bank. Backing by multiple banks creates its own issues. And, of course, you still need cross-currency liquidity, and you have no war chest from the value of the asset to spur liquidity. Would they raise $10 billion to compete with the value of our XRP? This would just be a new market for XRP -- bridging their payments to other fiats.

Could XRP realistically in 10 years be worth the same as a bitcoin is now? Or is that not at all realistic?

[btald1331]

24 minutes ago, vanhalendlrband said:

Could XRP realistically in 10 years be worth the same as a bitcoin is now? Or is that not at all realistic?

In my opinion its not realistic. Bitcoins total supply is a lot less than XRP. Bitcoin's supply is 21,000,000, XRP's is 100,000,000,000. Not accounting for the deflationary concept, that would mean your looking at a price around 21,000,000 BTC /100,000,000,000 XRP = .021%, or $2400 * .00021 = $.504. This purely math of the max supply of each currency. 

If you do the math off of the current circulating supply for a future prediction your looking at 16,353,025 BTC / 38,249,335,400 XRP = .042% or 2400 * .00042 = $1.008.

Not saying it won't go above $1 in 10 years, I believe it will. But this is just a direct comparison. 

Edited May 26, 2017 by btald1331

[RADDlSH]

16 minutes ago, JoelKatz said:

I don't know that much about it. We expected to have to compete with coins launched by banks. It really comes down to this: Either the coin is backed (redeemable in fiat) or not.

If it's not, then what advantage do they have over us? We're further along. We have plenty of banks who support what we're doing. We have solid financing. We have an asset that already has value and liquidity. We have the best team in the space. They have ... what?

If it's redeemable in fiat, then it's not neutral. It has counterparty risk, and it's associated with a particular jurisdiction. If it's backed by only one bank, you've reinvented the settlement problem getting back to that bank. Backing by multiple banks creates its own issues. And, of course, you still need cross-currency liquidity, and you have no war chest from the value of the asset to spur liquidity. Would they raise $10 billion to compete with the value of our XRP? This would just be a new market for XRP -- bridging their payments to other fiats.

Joel, I commend you for engaging with the community head on. I think you all are doing a fantastic job. Please keep continuing to be transparent as Ripple's profile increases, and I believe the platform will be rewarded.

THANK YOU!