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Howard26

Joelkatz a question if you have time

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Possible that ripple could strike a deal with exchanges to enable all trading pairs / xrp? 

This would save everyone a fortune not HAVING to go through bitcoin every time. 

If you guys even made this possible on one or two exchanges, you would take over the entire market. 

Kraken recently enabled xrp/fiat, so they must see potential I would think, but whichever exchange decides to move away from bitcoin and into xrp where the time & cost are far lower would completely corner the market. 

Who wouldn't want to eliminate long waits, and high fees? 

Any reason we havet seen this change?

Thanks

 

Edited by Howard26

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1 minute ago, Mercury said:

Um... Isn't Ripple already doing this? First Bitstamp, than Kraken and now half of Japan and Korea and more pending...

I think what he is referring to is the market itself.. like on poloniex there are only 4 markets. the BTC market, the ETH market, the Monero market and the USDT market.. where all other currency are paired directly against the price of each specific market.. Right now when we say XRP is worth xxxx satoshi.. its because we are referring to the btc market, or when we say its worth xxx cents we are referring to the USDT market.. not the fact that ripple is listed on the exchange in general but it would be what all other coins are compared to.. hope that makes sense

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32 minutes ago, Kylo Ren said:

It's possible (probable?) that Ripple Labs does not want XRP to go up in price but I'm curious to hear the response.

@Kylo Ren Why are you saying this?  JoelKatz himself has reiterated (recently) what the company's strategy is with regards to making XRP appreciate:

Quote

 

1) Ripple gets banks to use its payment technology.

2) Banks integrate Ripple's payment system into their system.

3) This helps to eliminate all the technical obstacles to banks routing payments through a crypto-currency. (Regulatory, compliance, business rules, integration effort, etcetera.)

4) Banks use the system to clear payments with each other, probably using mostly ILP. (ILP is a protocol that permits atomic, cross-ledger payments. Most importantly, it allows a "connector" to facilitate the payment even if that connector is not trusted by either the sender, the recipient, or the source and destination financial institutions.)

5) Ripple tries to make XRP the premium connector by targeting inefficient corridors.

6) If XRP can efficiently bridge X% of payments between banks that use Ripple, it will.

7) This will increase the demand for XRP as connectors need XRP to buy the destination currency for their trades.

8) If XRP is cheap to trade with other currencies, people who don't know what currency they'll need next may hold XRP.

9) If XRP is cheap to trade with other currencies, people who are willing to buy any currency they can get cheaply may hold XRP.

10) This can lead to a cycle of increasing demand.

Ripple may or may not succeed. Ripple's strategy may change. But that's Ripple's plan, in summary.

Or, even shorter, build a massive, level playing field in which assets can compete to bridge payments, then try to make XRP a winner on that playing field.

This is an ambitious, maybe even crazy, plan. But Ripple has raised tens of millions of dollars, has over a hundred full time employees, and our successes to date speak for themselves. That is, of course, no guarantee of success.

 

source:

 

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29 minutes ago, Hodor said:

@Kylo Ren Why are you saying this?  JoelKatz himself has reiterated (recently) what the company's strategy is with regards to making XRP appreciate:

source:

 

Numbers 8 and 9 specifically cite "cheapness" as an advantage to adoption.   

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17 minutes ago, Kylo Ren said:

Numbers 8 and 9 specifically cite "cheapness" as an advantage to adoption.  

This is not the cost of the cryptocurrency, it's the cost of volatility during transfer time. 

Basically, if the price of XRP goes down between when i transfer from one currency pairing to XRP, and then from XRP to the target currency, it's considered "expensive".  The way that banks handle making it "cheap" is to use volatility-lessening services (source: http://www.huffingtonpost.com/entry/ripple-and-xrp-are-more-stable-than-you-think_us_591cb3bee4b0b28a33f62915  )

The good news is that XRP can be any amount... a very high amount... without making transactions more "expensive"!  :smile:

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Well I hope you are right and I am wrong but it seems logical that if XRP is the "oil" in the engine, partners would want cheap oil.  

Ripple might need to think about new ways of reassuring partners that a high XRP price is fine.

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Guest petke

 

19 hours ago, Hodor said:

This is not the cost of the cryptocurrency, it's the cost of volatility during transfer time. 

Basically, if the price of XRP goes down between when i transfer from one currency pairing to XRP, and then from XRP to the target currency, it's considered "expensive".  The way that banks handle making it "cheap" is to use volatility-lessening services (source: http://www.huffingtonpost.com/entry/ripple-and-xrp-are-more-stable-than-you-think_us_591cb3bee4b0b28a33f62915  )

The good news is that XRP can be any amount... a very high amount... without making transactions more "expensive"!  :smile:

That's right. Its about low transaction cost and low spread on the currency exchange rate

A small detail though. Transaction fees are denominated in XRP though. Its 0.00001 XRP (10 drops). Thats a tiny amount. So XRP would have to go up a huge amount for the transaction fee to be noticeable. The XRP would have to go up to 100000 dollars for the transaction fee to go up to 1 dollar. I think if that happened they would simply lower the transaction cost to 1 drop (not sure if they can go lower). 

Edit:

Just so nobody gets confused. The transaction fees are not an issue, they are just an obscure detail. They are so small you are better off not thinking about. They are 0.00001 XRP no matter how valuable XRP becomes. XRP would have to become insanely valuable for you to ever notice them. The reason that there is any transaction fees at all, is just to stop DoS attackers from spamming the system with millions of dummy transactions per second.

The only fee that matters here is the currency exchange fee (fx fee). My bank charges me many % when i transfer from one fiat to another. Ripple needs to compete with lower a lower fx fee than the banks. This fee becomes lower the more people trade in and out of XRP to these currencies (liquidity). A growing value of XRP is good for ripple in the sense that most likely means XRP is becoming more used, and that liquidity is growing (more sellers and more buyers at every price). More liquidity brings down the fx fee. 

Edited by petke

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6 minutes ago, Kylo Ren said:

You need to make it just as cheap/easy to trade regardless of price and communicate that well to partners.

Completely agree on this. 

XRP solves a boatload of problems, but the issue is that the market doesn't seem to understand that yet!   The good part is that some of these questions are popping up quite frequently, which means that interest is swirling and gathering steam....

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Kylo ren, if you think a company wants its asset's value to stay low, you have no ideas what a business is. Ripple is working on the infrastructure and the price will get appreciated as xrp starts to utilize. 

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Oh I know that ripple employees will benefit huge, but some new ideas and marketing are needed to reassure the partners.

What about a "transactional price guarantee?."  That way banks and financial institutions know a flat fee of xrp that each transaction burns regardless of the current market price of xrp.  Each partner could negotiate their own.

Then Ripple can adjust their system to benefit both users and investors.

 

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