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


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On 5/26/2017 at 8:12 PM, Texaschris said:


I will add this....I've made real money (commas bro, commas) being in the right position _before_ everyone else figured things out.  If you're thinking aligns with most people, you're in the most danger and ought to check your strategy.  You don't want to be a part of the surge, or the collapse.  You want to be the first one into the calm waters, and the first one out when you've achieved the upside goal, and ideally, crush a short position on exit.

So no, you are correct, we do not know..... but if you want the real money, you better be in position _before_  they all know.

Hi TexasChris, I really like what your writing.  Would you kindly have an tips on how I can strategize? Sounds like you know what your doing.  I have XRP locked away, but i'd also like to buy more just to trade with. Thanks.

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1 hour ago, BanjoAngelo said:

Hi TexasChris, I really like what your writing.  Would you kindly have an tips on how I can strategize? Sounds like you know what your doing.  I have XRP locked away, but i'd also like to buy more just to trade with. Thanks.

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10 hours ago, BanjoAngelo said:

Hi TexasChris, I really like what your writing.  Would you kindly have an tips on how I can strategize? Sounds like you know what your doing.  I have XRP locked away, but i'd also like to buy more just to trade with. Thanks.

As pertains to this, I was actually late to the party.  The people who nailed this were in 6 months to a year ago, or even earlier.  However, we are still in the infancy as far as the value per unit, and implementation of the system.

The best advice I can give you is to practice vetting companies and ideas.  The more you do it, the better you get at it.  Ask yourself the principle questions, don't get caught up in hype or ********.  Get a white board (or 2 or 3) and start collecting info.  DD is everything. (due diligence)

1. Where did they come from?
2. What is the teams back ground?
3. What are they doing?
4. What do they aim to accomplish?
5. How likely is it that they will be successful?

and most importantly,

6. How can it fail?

There is always a snowballs chance in hell a thing could pay off.....and this is why people lose money so easily and so often.  As a successful investor, recognizing the chinks in the armor is more important than recognizing promise or potential.  Only 1 long shot in a 100 gets _anywhere_ close to a pay day.

 

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4 hours ago, Texaschris said:

As pertains to this, I was actually late to the party.  The people who nailed this were in 6 months to a year ago, or even earlier.  However, we are still in the infancy as far as the value per unit, and implementation of the system.

The best advice I can give you is to practice vetting companies and ideas.  The more you do it, the better you get at it.  Ask yourself the principle questions, don't get caught up in hype or ********.  Get a white board (or 2 or 3) and start collecting info.  DD is everything. (due diligence)

1. Where did they come from?
2. What is the teams back ground?
3. What are they doing?
4. What do they aim to accomplish?
5. How likely is it that they will be successful?

and most importantly,

6. How can it fail?

There is always a snowballs chance in hell a thing could pay off.....and this is why people lose money so easily and so often.  As a successful investor, recognizing the chinks in the armor is more important than recognizing promise or potential.  Only 1 long shot in a 100 gets _anywhere_ close to a pay day.

 

Excellent advice.  Thanks for taking the time to write that explanation. This will be incredibly useful to me (and others no doubt).  Cheers, massively appreciated.

 

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On 5/25/2017 at 9:50 AM, JoelKatz said:

6) Now, say you're a company like Seagate that pays out money all over the globe. If you have to make payments to five countries in our corridors, you'd rather hold one pile of XRP than five piles of different currencies. That increases demand.

7) Now, say you're a company like Apple with a huge pile of cash. If you want to snap up other assets cheap, you'll need to hold the asset the people selling want. If they're going into any of our corridors, they'll want XRP, so you would want to hold it.

Hi Joel,

When I first read about Ripple and XRP, I got the impression that XRP would be solely used during the transaction. However from your answer above, I understand that this is not expected and that banks or perhaps corporations will hold XRP on the Ripple blockchain in order to handle transactions over that medium. I wanted to make sure, I understand this correctly so please consider the following example where a sender agrees to pay $100 to a recipient receiving the value of $100 in its native currency (Yen).

  •     Sender (send $100 to recipient)
  •     Ledger bank sender (put $100 in escrow)
  •     Connector (put the equivalent of $100 in XRP in escrow)
    •         Ripple blockchain: 'buy' XRP for $100
  •     Ledger bank recipient (put the equivalent of $100 in Yen in escrow)
    •         Ripple blockchain: 'sell' XRP for ~11100 Yen
  •     Recipient (acknowledge receipt of payment)
  •     Transfers are moved out of escrow to the destination accounts

Questions:

  1. Is this how the process works in broad lines? If not, could you please explain in broad terms what the process would look like when using the Ripple blockchain?
  2. Are the Ripple blockchain 'buys' and 'sells' in the process the reason why banks and corporations will hold XRP so they will be able to handle a transactions from a readily available pool of XRP instead of having to buy/sell XRP for transactions? If not, what do you consider reasons for banks and corporations to hold XRP then?
  3. Would the effect of 'buying' and 'selling' not even out XRP demand. While the sender could be buying for example 400 XRP, the recipient could be selling 400 XRP in the same transaction. I guess that once a bank or corporation owns a pool of XRP, further demand for it really depends on how many incoming and outgoing transactions there are.
  4. How will XRP price fluctuations affect transactions executed using the Ripple blockchain? (Wouldn't it be easier for banks/corporations if XRP was a kind of stable currency?)
  5. In broad lines, what milestones would need to be completed for Ripple become a success?
  6. I understand this may be difficult, but what factors would you consider to be the largest risks for Ripple to fail? (Consider for example that SWIFT modernizes their infrastructure in such a way that they can easily compete with Ripple.)

Thanks in advance for taking the time to think about and respond to this. I look forward to hearing from you.

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On 5/25/2017 at 7:50 AM, JoelKatz said:

6) Now, say you're a company like Seagate that pays out money all over the globe. If you have to make payments to five countries in our corridors, you'd rather hold one pile of XRP than five piles of different currencies. That increases demand.

7) Now, say you're a company like Apple with a huge pile of cash. If you want to snap up other assets cheap, you'll need to hold the asset the people selling want. If they're going into any of our corridors, they'll want XRP, so you would want to hold it.

8) If that succeeds, it should massively increase the price of XRP.

I really like #8.  

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7 hours ago, Gita said:

I know everyone is excited about "If that succeeds, it should massively increase the price of XRP.",  but "It can work without XRP and without any blockchain tech." really worries me. 

The nostro account problem will not be solved without XRP, nor would there be a bridge currency. Sure, there could be another digital asset accomplishing that. Then, I wish you good luck with this. XRP is years ahead. 

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On 6/2/2017 at 0:29 PM, IeTie said:

Hi Joel,

When I first read about Ripple and XRP, I got the impression that XRP would be solely used during the transaction. However from your answer above, I understand that this is not expected and that banks or perhaps corporations will hold XRP on the Ripple blockchain in order to handle transactions over that medium. I wanted to make sure, I understand this correctly so please consider the following example where a sender agrees to pay $100 to a recipient receiving the value of $100 in its native currency (Yen).

  •     Sender (send $100 to recipient)
  •     Ledger bank sender (put $100 in escrow)
  •     Connector (put the equivalent of $100 in XRP in escrow)
    •         Ripple blockchain: 'buy' XRP for $100
  •     Ledger bank recipient (put the equivalent of $100 in Yen in escrow)
    •         Ripple blockchain: 'sell' XRP for ~11100 Yen
  •     Recipient (acknowledge receipt of payment)
  •     Transfers are moved out of escrow to the destination accounts

Questions:

  1. Is this how the process works in broad lines? If not, could you please explain in broad terms what the process would look like when using the Ripple blockchain?
  2. Are the Ripple blockchain 'buys' and 'sells' in the process the reason why banks and corporations will hold XRP so they will be able to handle a transactions from a readily available pool of XRP instead of having to buy/sell XRP for transactions? If not, what do you consider reasons for banks and corporations to hold XRP then?
  3. Would the effect of 'buying' and 'selling' not even out XRP demand. While the sender could be buying for example 400 XRP, the recipient could be selling 400 XRP in the same transaction. I guess that once a bank or corporation owns a pool of XRP, further demand for it really depends on how many incoming and outgoing transactions there are.
  4. How will XRP price fluctuations affect transactions executed using the Ripple blockchain? (Wouldn't it be easier for banks/corporations if XRP was a kind of stable currency?)
  5. In broad lines, what milestones would need to be completed for Ripple become a success?
  6. I understand this may be difficult, but what factors would you consider to be the largest risks for Ripple to fail? (Consider for example that SWIFT modernizes their infrastructure in such a way that they can easily compete with Ripple.)

Thanks in advance for taking the time to think about and respond to this. I look forward to hearing from you.

I would like to have that cleared as well. Somebody with a more deep understanding of the matter may chime in here. 

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@ JoelKatz

3) The hard part about getting banks to use a blockchain isn't the blockchain, 
it's everything else. It's governance, compliance, integration with banking systems, 
and so on. our software does all that stuff, 
so if routing a payment through XRP is a penny cheaper, the bank can take it. 
Then we have to make XRP cheaper somewhere that matters. 

please tell me that you say "make XRP cheaper".

you mean that you make cheaper market price of xrp? or direct sell price to bank? or this sentences is about not price of xrp but xrp send cost?

please.

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26 minutes ago, woodpecker said:

@ JoelKatz

3) The hard part about getting banks to use a blockchain isn't the blockchain, 
it's everything else. It's governance, compliance, integration with banking systems, 
and so on. our software does all that stuff, 
so if routing a payment through XRP is a penny cheaper, the bank can take it. 
Then we have to make XRP cheaper somewhere that matters. 

please tell me that you say "make XRP cheaper".

you mean that you make cheaper market price of xrp? or direct sell price to bank? or this sentences is about not price of xrp but xrp send cost?

please.

Makes no difference what the price of XRP is to a bank.  It could be $100 per XRP, or it could be $1 per XRP - if a bank is converting $1 million dollars, the price of XRP is irrelevant.  Therefore, Joel is talking about the transaction costs of XRP.

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