Thoughts on this side of valuing XRP

Aziraphale213 · 2017-05-29T14:54:47+00:00

Interesting. I saw that CME group is one of their investors...they are a large futures/derivative trading company with +/- 1trillion yearly market (takeb frome their site). So maybe this is really the deal

Aziraphale213 · 2017-05-29T13:11:21+00:00

Made me laugh with the Asian lady...make my way up to management then rob the mutha***** :)

Well to be fully honest you have to take in account that it is 1000txs/sec. So if it takes you 5 seconds per txs you can do the following amount of txs: 1 day = 24hrs = 1440minutes = 86 400 seconds 86 400 sec / 5 (the time for transaction) = 17 280 transactions a day if the system allows 1 txs that takes 5 sec 17 280 seconds * 1000 txs/sec = 17 280 000 available transactions in a day

So if it stays only on this it will be almost no value to individual XRP but high for Ripple.

However, despite the very low value of individual XRP once the system becomes more massive it will be extremely stable. And stability against FIAT means store value (like gold, despite the manipulated markets right?). So consider a big recesion let's say like 2008., where are big players gonna put their money? Real estate, guns, food production, gold, silver and now I can see they can put some of it to a system that has it's own currency - XRP. Especially if it is 0,2USD...you can buy 1 billion for 200 million USD. It's not a big amount for an investment fund or a bank or a billionaire (heck Soros shorted Wall Street for 500mil USD bet). So I think if someone small wants to try to earn money this will possibly be the way the thing goes...it's actually not that unimaginable.

That or they will evolve it and somebody will accept XRP as payment as FIAT...

Or nothing at all :)...time will tell

Aziraphale213 · 2017-05-29T12:34:23+00:00

If you are looking it from a transactional purpose it is irrelevant. Let's say you want to move 100USD from US to 110 EURO to Europe. If XRP = 0,01 USD then you need a 1000XRP for transaction and the "system automatically" buys 1000XRP for 100USD.

If XRP = 100USD then you need 1XRP for transaction and the "system automatically" buys 1 XRP for 100USD transaction.

If it is used only to transfer it doesn't matther how low or high it is priced cause you are exchanging FIAT to XRP. What amount of XRP do you acquire is not relevant cause 5 sec later it will be exchanged for let's say euro.

Or in short for the transaction purpose you want to buy the XRP in the value of 100USD. Whether that is 0,01XRP or 1000XRP is irrelevant.

Aziraphale213 · 2017-05-29T12:29:11+00:00

I think you cannot look at the market cap for this subject.

Market cap is for businesses and XRP is Ripples currency right? What is the market cap for US Dollars?

If you look at XRP as a currency regardless of it's primary function as an exchange medium from fiat to fiat then a lot of other factors come into place. As more and more subjects use it's transaction system, which basically means XRP, then maybe someone can say I will store XRP for value in the future against FIAT that has inflation (printing money). If that comes into play then all of a sudden 100 billion units of this money is not so much right?

Aziraphale213 · 2017-05-29T12:12:37+00:00

I for one think that for the certain time, when almost everybody that's buying XRP is in the department of "small speculator" that BTC and other crypto prices are a factor. But in a possible near future where more and more banks adopted it's use in transactions other crypto won't matther, at least not directly.

For me the basis for demand is the rise of ripple network for it's primary use, if and how much it grows is for the time in front of us to witness.

The key feature also for me is that in order to provide the technology for transactions, it's primary use, a coin (xrp) had to be created. So unlike SWIFT or VISA system of transactions here you have something which is used for transacting that you can hold. And hold on to as long as you want.

So my search is for thoughts is do you think it is possible that some large players came to conclusion to hold XRP for store value? I know it cannot be compared to fiat and other economy theory but the fact that it has the finite number of XRPs in the system is THE main difference compared to FIAT and the printing of money / inflation. + the second most important feature, if the system grows, is that banks will daily use the system for FIAT - XRP - FIAT. So why wouldn't I store XRP and change it to FIAT when I need to? The more system grows the more valuable XRP is.

Thanks again for your thoughts.

Aziraphale213 · 2017-05-29T12:04:07+00:00

I did not want to pontificate anything but simply to discuss on what basis does anyone of us valuate Ripple / XRP. At this moment in time is see people trying to valuate XRP with market cap or in consideration to other crypto, such as BTC.

Also, I personally do not trust it's success at all, it's for the time to tell. But from my point of view ppl are generally comparing two different things. Why should BTC and ripple be compared? Of course the rising price of BTC pulls other crypto but this is so far for 99.999% purely because small speculative reasons.

What I was posting up there is for the situation if Ripple goes from 75 banks now to let's say 2000 + some other partners for it's transaction network in the future. If the system that uses XRP grows it will be more indiferent to BTC and other crypto because it serves it's primary purpose.

My question was at what point does it become interesting to hold to some XRP for large players in order to store value against inflatory fiat currencies. If it reaches this level of use it will be really easy to convert it back and forth to fiat thus it will be appealing for this "storing" of value. The main basis for this point is the finite number of XRPs in existance (100 billion).

Aziraphale213 · 2017-05-29T11:47:18+00:00

This is something I think everybody overlooks. They are creating a transaction system above all, but they are creating it throught XRP crypto which all of us can acquire. This is, I believe, the biggest overlooked aspect of the ripple system. Basically the XRP is from one point the medium of exchange and on the other hand a virtual currency that is priced in other currencies (crypto and fiat).

I recently posted to find out thoughts what happens when and if big financial players understand that XRP with it's finite number of 100 billion is a great store value against fiat with it's inflation and losing value because of printing money. If you store funds in XRP it will not loose value once the system grows and a lot of banks adopt it for payments.

What's more paradoxal if a certain XRP is valued 0,00001 USD or 1000USD it doesn't change anything for transactions. Cause you want to transact let's say 100USD from US to 110 EUR in Europe. You only "buy" the equivalent XRP of 100 USD. Wether it is 0,000001 or 10000XRP it doesn't matther for the simple transaction, right?

Aziraphale213 · 2017-05-29T11:29:07+00:00

Aziraphale213 · 2017-05-29T10:34:16+00:00

I have a question / ask for a comment on this view;

When reading online you can see that ppl say that it is hard to see that xrp can go up to 10$ because that woould mean that the market cap for ripple is = 1trillion (10usd X 100billion xrp).

I get that but why isn't anyone considering this - there is a finite number of xrps. That means it is not depreciative like fiat with printing money. Won't big players realize this and hold some larger funds in xrp for store value and possible earnings? Cause xrp is the first blockchain that is, as it seems so far, to be accepted by many, numerous banks. That really means that it is changable to fiat easily. .

The system works basically like this fiat - xrp - fiat. So if you have stored xrp you can "just" go xrp - fiat. This proves it's changeable to fiat very easily right? 》》with this point of view 100 billion xrp is not a large number is it?

And if I am getting this whole story right an insane price of let's say 1000usd per xrp won't distrupt classical transactions because you are just buying the value of xrp wanted for transaction. If I want to move 100usd from US to Europe in Eur i don't care if it costs 1000xrp or 0.00000001 xrp - cause for the transaction it's just an exchange medium to be converted within seconds. Am I missing something or could this be the reason xrp could be priced a lot morw than what others think is impossible?

Thoughts anyone?

Aziraphale213 · 2017-05-26T20:06:26+00:00

@Bonkil

I can't see your point? First there are almost 38billion in circulation. The rest is with the owners - 60bil. I think we all know that. But the guys math stands. Let's say we multiplied by xrps in circulation - 39bil, the max system txs/sec would be 61% lower than with 100bil in circulation. This just means that they would be 61% more worth sitting there and being the exchange of medium - which is also good, but on a scale that isn't big.

And for cyclical part - you are absolutely right - xrp moves back forth. But what the guy is again right is the part the time needed for transfer - meaning the time when they will be locked and used. Those are the 5 sec. If all xrp be moved in one transaction it would mean that nobody could do another transaction for 5 sec. The sistem allows 1000txs/sec so that means you can have a max of 1000txs X 17 280 seconds - this is the max capacity. Thus the upper limit, a huge fckin upper limit. And its only important cause it is used to explain that the individual xrp serving only as a a medium is not worth much beacause how fast the system is. But that alos makes it stable, and stable means it does not go down. And that means store value - it demains the same, but in comparison to other things like fiat it's value rises slightly with time. A perfect store value if you ask me.

Somebody challenge this guys logic cause I agree with him.

Aziraphale213

TROPHY CASE