Topic: Ripple: Does it scare you? - page 4. (Read 4329 times)
Credit is a need...unfortunately it is needed
Banking? Pass.
Don't think about what the enemy may do; think about what he can do - ancient wisdom.
And I know what they can do...
Ripple is credit 2.0
Banking 2.0...
the real fun is for you to explore.
The system is based on trust and there are massive financial incentives to abuse that trust. The ability for a gateway on the brink of insolvency to sweep all of its customers accounts and then collapse is terrifying once you start talking about real world money.
I have seen companies go insolvent and the owners will try to suck out every cent before it goes under.
If Bitstamp was trusted by millions for hundreds each then Bitstamp could explode and take hundreds of millions in assets and the account owners would not even know until they woke up with worthless Bitstamp IOUs the next morning. Most of us are old enough to remember Lehman Brothers and Bear Stearns exploding and know that brand counts for nothing when a black swan hits.
If Ripple is to succeed then the concept of trust lines needs to be refined. I actually want Ripple to succeed but their model just seems horribly flawed.
I have seen companies go insolvent and the owners will try to suck out every cent before it goes under.
If Bitstamp was trusted by millions for hundreds each then Bitstamp could explode and take hundreds of millions in assets and the account owners would not even know until they woke up with worthless Bitstamp IOUs the next morning. Most of us are old enough to remember Lehman Brothers and Bear Stearns exploding and know that brand counts for nothing when a black swan hits.
If Ripple is to succeed then the concept of trust lines needs to be refined. I actually want Ripple to succeed but their model just seems horribly flawed.
Don't think about what the enemy may do; think about what he can do - ancient wisdom.
I know it's an exchange (of sorts) but my problem with it is that it's based on trust, so it's basically trading from margin accounts and not cash accounts. A massive speculator from Wall St can get a lot of trust from the very large financial corporations (confirmed over dinner) that most users will need to trust, and be trusted by. Then they can basically trade bitcoin for free.
What happens when that speculator takes on heavy losses and defaults? How will the ripple exchange payout? It's possible that it'll be the humble users who's wallets will be raided automatically before they even have a chance to do anything about it. The way it's setup allows exactly that scenario, and the way the world turns I don't put it out of the realm of possibility.
What happens when that speculator takes on heavy losses and defaults? How will the ripple exchange payout? It's possible that it'll be the humble users who's wallets will be raided automatically before they even have a chance to do anything about it. The way it's setup allows exactly that scenario, and the way the world turns I don't put it out of the realm of possibility.
It shouldnt and here is why:
Its not BTC 2.0 its not trying to be
It is going to be one of the biggest decentrlized currency exchanges
XRP are a joke.. expect tons of this to flood the markets soon.. buy as much as you can
XRP appears to be credit rating as we know it now.. you cant borrow money without credit currently.. basicly its escrow without being escrow.
Thier system has a ton of bugs..
They are doing something that no website has ever done before
The open ledger is a blessing and a curse... tbd
Theres more... but that 2 reasons alone should get you thinking about ripple.. its not a coin....but it does use colorcoin and makes it 3d...
Its not BTC 2.0 its not trying to be
It is going to be one of the biggest decentrlized currency exchanges
XRP are a joke.. expect tons of this to flood the markets soon.. buy as much as you can
XRP appears to be credit rating as we know it now.. you cant borrow money without credit currently.. basicly its escrow without being escrow.
Thier system has a ton of bugs..
They are doing something that no website has ever done before
The open ledger is a blessing and a curse... tbd
Theres more... but that 2 reasons alone should get you thinking about ripple.. its not a coin....but it does use colorcoin and makes it 3d...
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