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is 50$ a coin possible for ripple?

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I will just post this question on this topic too, because on the other one nobody answered:

I have one question for anyone who can answer.
We all saw some calculations about potential XRP price. What bothers me is they are all based on some yearly/daily quantity of money transfered/exchanged.
But the thing is, we have to assume that one XRP token can be moved multiple times a day. Even multiple times in one hour. First let me quote one part of recent Reddit comment:

Quote

 

There are a total of 100 billion XRP in total but only 38 billions (0.038t) in circulation. If we take the actual price of a XRP (approximation) : 0.17$ for 1 XRP. So the market cap : 0.17 * 0.038 = 0.00646 t

Imagine XRP take just 1% of the daily global market exchange volume, it would result of 0.102t per day (10.2t / 100)

Now take the XRP transaction by day and the market cap. If 0.0001 transaction per day give 0.00646t market cap, 0.102t transaction per day give 6.59t of market cap.

Let's divide this new market cap by the total amout of XRP (0.038t)

6.59t / 0.038t = 173$

CONCLUSION : If XRP take only 1% of the daily global money exchange market, The value of 1 XRP will be 173$

 

So that is calculation based on daily quantity of money circling around. But let's assume same XRP token can be moved once every half hour. That leaves us with:
173 / 48 = $3.60.
Again, I guess that sometimes 50% - 60% of daily volume can be moved in 30 mins. I am trying to find the right way to think about this but it is hard because I don't know all the facts.
If anybody can make some kind of clarification that would be great, I am sure I'm not the only one with this doubt. 

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12 minutes ago, prkzingis said:

I will just post this question on this topic too, because on the other one nobody answered:

I have one question for anyone who can answer.
We all saw some calculations about potential XRP price. What bothers me is they are all based on some yearly/daily quantity of money transfered/exchanged.
But the thing is, we have to assume that one XRP token can be moved multiple times a day. Even multiple times in one hour. First let me quote one part of recent Reddit comment:

So that is calculation based on daily quantity of money circling around. But let's assume same XRP token can be moved once every half hour. That leaves us with:
173 / 48 = $3.60.
Again, I guess that sometimes 50% - 60% of daily volume can be moved in 30 mins. I am trying to find the right way to think about this but it is hard because I don't know all the facts.
If anybody can make some kind of clarification that would be great, I am sure I'm not the only one with this doubt. 

You are right. 1 XRP can be used 86.400 times a day (every second) so fi's don't need that much XRP.

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4 minutes ago, prkzingis said:

you are obviously kidding

No. Maybe you can divide 86.400 by 4 (transfer duration), but after that the xrp is available again for transfer. It's a bridge currency, not an asset.

Edited by BeSeriousXRP

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1 minute ago, BeSeriousXRP said:

No. Maybe you can divide 86.400 by 4 (transfer duration), but after that the xrp is available again for transfer. It's a bridge currency, not an assist.

That's why i though you are kidding. You've got to wait at least a couple of seconds until transfer ends. So basically all these "daily volume divided by number of tokens" calculations are wrong i guess. 

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Just now, BeSeriousXRP said:

Yes. Way to optimistic

But then I guess we've got to assume that sometimes banks have a very very large transfer that is like 80% of daily volume, so they gotta be prepared for those cases too. 0.20$ XRP wouldn't do the job then, or am I wrong?

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Just now, paym8 said:

Also not every XRP issued will be available for trade, hodlers , hedge funds, investments, waiting for right price etc,

making the xrp available much much less than the totals being calculated.

That is true also. I guess @JoelKatz would be the man who can give as some clarification.

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35 minutes ago, prkzingis said:

That is true also. I guess @JoelKatz would be the man who can give as some clarification.

if you have read through Katz' posts, you will know his thoughts on this ridiculous example. It is a bridge currency but also an asset. it must be bought to be used. does the money in your pocket get recycled or do you spend it? yes, its recycled, but you had to earn it and spend it.

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If Nostro accounts go away, something has to take its place. whoever owns the nostro will have to own the same in XRP for example. it just may not be held all at once and just be purchased as needed.

where u guys get that xrp will be recycled for free is strange.

do your xrps u own get recycled for free? if so, please send me your zerps. let me know ill give u my account.

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1 hour ago, fourthjohn said:

If Nostro accounts go away, something has to take its place. whoever owns the nostro will have to own the same in XRP for example. it just may not be held all at once and just be purchased as needed.

where u guys get that xrp will be recycled for free is strange.

do your xrps u own get recycled for free? if so, please send me your zerps. let me know ill give u my account.

I don’t know where you got the concept of recycling, since you are the first to mention this. What is being discussed was how frequent XRP would be able to facilitate a transfer of value during a day.

Take this scenario and tell me if you agree with the process:

Say I wanted to transfer $1 from my bank account in Europe to my bank account in the US.

To do this my European bank would take 0.85 EUR from my account and buy 5.7 XRP (using current exchange rates)

These 5.7 XRP is then sent to the US bank which sells it for USD and deposits $1 into my US bank account.

This should all happen within 4 seconds, of me initiating the transfer.

 

This leaves the following account balances:

1. My EU account has -0.85 EUR

2. Some market maker has +0.85 EUR and -5.7 XRP

3. My US account has +1 USD

4. Some market maker has -1 USD and +5.7 XRP

Now #4 is free to either keep those 5.7 XRP or sell them again to facilitate another transfer. So in theory @BeSeriousXRP is correct in that I could make this trade back and forth all day long a maximum of 21600 times (86400/4). If you call this recycling then fine.. but nobody is saying its free, it's just trades being made; EUR <> XRP <> USD.

Please tell me where I’m wrong because I would love to know if I completely misunderstand this.

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Joel Katz has already mentioned that he anticipates banks will actually hold XRP and not necessarily send it back to the market to be re-used. Nothing stopping the bank from holding onto your XRP and simply paying you the amount owed while keeping the XRP. If the price of XRP increases, and will continue to increase, then it would only make sense that banks would wish to hold them as well. Remember it is more than a currency, its also a cost reducing asset. In my head it would only make sense to have a store of them, much like nostro accounts, so you could quickly send funds or buy other assets without having to source from an exchange... especially if you use the XRP frequently. Like Katz mentioned, by holding them you'd only have to pay the transfer fee once instead of twice.

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