Topic: dilemna with ripple - i just don't get it (Read 1389 times)

thanks for that peter

i won't be investing

1 - They are making the currency because they think it solves some problems in the ripple system. Their goal is to have many people running the servers so the network will not be subject to government shutdown (sort of like how bitcoin is not afraid of government shutdown).

2 - people are not speculating that the ripple network will be used for 10 quadrillion transactions, they are speculating that the ripples they get will be sellable for more money than they bought them for. The destruction of a very small quantity of ripples over a person's lifetime has less to do with their exuberance than the fact that the total supply is finite (kind of like how people say "there will only ever be 21M bitcoins, therefore bitcoins are deflationary"). What people who are speculating like this are not taking into account is that OpenCoin holds billions of ripples, and anytime they want they can release them and push down the price.

It is kind of like how everybody "knows" Satoshi is sitting on like a million bitcoins, and anytime he wants he could flood the market and drop the price. But even if Satoshi does still control all those bitcoins (if he has not lost the private keys for all of them) that is only 10% of the total currency, and once he did it the market would absorb those and just keep going. But Ripples, on the other hand, nobody knows how many have actually been given out and how many the creators are still holding. There is some amount floating around right now, and they are going for about 0.125 mB, OpenCoin could dump enough to double that float, and then double it again, and then double it again, and then double it again, each time crashing the market price of ripples. So, in my opinion, investing in ripples is extremely risky, even more risky than bitcoins.

Hope that helped.

I also gave up. People get to waste only so much time of me.

I think Ripple definitely succeeded in getting loads of attention from the bitcoin community, got to give em that.

ok
1 - why would ripple want to associate themselves as a currency? they will be shut down in a heart beat
2- so people think that ripple will blow up enough for 100 billion ripples to become a scarcity, and each ripples does 1000 transaction, ok

i seriously give up on this

No, no, no, you don't quite get it yet. A ripple is not a transaction, a ripple is 10000 transactions.

If ripples were only ever to be used as transaction payments, then you would be correct. But they can also be used as a currency similar to bitcoins, and some people are hoping to use that similarity to make money on the chance that XRP prices go up, so the speculators have inflated a huge bubble.

Perhaps a more simplified version ?

i'm pretty sure ripple is exchanged on a platform which is judged by speculative value, unless your saying that the price of ripple is directly influenced by the value of other IOUS' which would mean an exchange is not even needed and ripples should only be issued by Rippe directly as ripple isn't a currency, only a service provider

anyways back to my point of the thread, why is there a speculative value on ripples when the amount of ripples is 100 billion, meaning its impossible for there to be any speculation of the real value of a ripple due to volume, therefore why is there an icnrease in price at all, unless your really telling me that loads of people are adopting ripple in their everyday life to create a threefold increase in price with a 100 billion volume, give me a break,

to be honest i'm not sure why i care so much, i just can't stand loose ends in head, and this ripple business is full of them for somehting thats meant to be hyped

the most offensive quote from ripple is imho "open-source project" It is first open-source without published source :D lol and shame on them

EUREKA, OF COURSE!

HAHA

hope that helps ! - its always easier when you visualize it , that's what i find anyway .

It uses a simplified semi-complex system, of leverage rationed partial non interest bearing upscale investment vectors.

Its really quite simple;

if i had to simplify it , I’d break it down like this :

still doesn't make sense........ sigh

There isn't a fixed value for XRP because it will price itself at a rate high enough to support it's ability to handle ripples transaction capacity.  Its value is derived from the value of the other IOU's stored and traded within the ripple platform.  Outside of ripple it has much less value since it requires trust in the ripple system, which one would not likely be extending if they were not actively using ripple for its intended purpose.  Within the ripple system it's extremely versatile though.

Ripple is a scam with good marketing team.

step a) Promise average joe free ripples.

step b) Dont give them to averaje joe. Only give them to a selected few Hero/senior bitcointalk members (as a bribe to hype ripple)

step c) Then give few ripples to all bitcointalk members to get the unofficial exchange started and get everyone involved.

step d) Then keep reminding average joe that their free ripples are on its way in few weeks.

step e) Average joe doesnt want to wait for the free give away as the price of ripples seems to be rising on exchange so he buys them from exchange and this in turn helps to rise the price again.

What average Joe doesnt know is that ripple (opencoin) is manipulating the price higher by keeping a check on supply. They will surely give away few ripples to everybody but they will do that in small batches so that ripple can sustain their price compared to btc or usd while increasing the number of ripples in market.

Ripple will fail because its not a crypto currency at all. Any day government can knock on opencoin's door and ask them to comply with regulations.

good for you, but this isn't to do with how much one can make, this is to do with the fundamentals of the whole xrp trading system

Should I hate ripple? I earn more than 50btc  and still earning.

so how does this explain the high  and higher prices per ripple? surely ripple is just a service, and therefore should actually be unlimited in xrp, the 100 billion xrp sounds like jsut a gimmick to me, 100 billion xrp is unlimited i suppose, however if it is unlimited ripple should be pricing the xrp at a fixed unfluctatuted cost, however ripple isn;t becouse they know people won;t pay for a service however will pay for ripples in a 'crpto currency medium state' so people are basically paying for a service before its even been done, and without even planning to use the service
shit
i thought i didn't get this but i realised i actually do

ripple is a joke to be  polite

I think it functions as a universal currency within the system.  All currencies (USD, EUR, BTC) within the ripple platform are IOU's, tokens that represent trust in an issuer.  To clear those trust lines and settle this debt you need to redeem those IOU's.  You need to cash them out and remove them from the ripple platform.  If you want to switch issuers you can trade them within ripple, or cash out and buy back in through another issuer.  XRP offers another avenue to clear those trust lines.  By using the platform you are trusting the ripple network, and ripples tokens (XRP) by default.  This allows XRP fo function as trustless within the ripple network, allowing you to "cash out" without leaving the platform.  It also provides more paths to exchange as any currency or commodity will likely be traded against XRP even if there isn't a direct exchange.  So you can still trade your BTC for pork belly futures even if there is no direct exchange rate because both will have a market with XRP.

Oh yeah, there's reserve too (basically just antispam).

i agree sounds like a big scam

qoute from name source from another thread

'When transactions become numerous, fees can rise to stabilize the network.
If my calculations are correct it would take the Ripple network 150,000 years to run out of XRP if it was processing an amount of transactions similar to the amount VISA is processing today.'

i just don't get why anyone would invest in ripple enough to  cause a price increase when the price of a ripple should really be static....... so stupid

The dilemma isn't that you don't get it. It is that you do. It's a 100% outright scam for the love of god. It is literally 100 BILLION ways for a 2 month old start-up to make 100 million dollars!