Ripple: XRP Price Speculation - page 2.

ploum

sr. member

Activity: 428

Merit: 254

Quote from: herzmeister on March 01, 2013, 05:48:40 PM

OpenCoin can and probably will regulate the value just like a central bank does.

Which is exactly the main criticism against Ripple.

I wonder if it would have been a good idea to make XRP different so it cannot be used as money. For example: by having continuous generation of XRPs and a validity: a XRP disappear after a given time.

herzmeister

legendary

Activity: 1764

Merit: 1007

sure not more than 100 billion, but until all of them are issued, the value will drop with every give-away. OpenCoin can and probably will regulate the value just like a central bank does.

interlagos

hero member

Activity: 496

Merit: 500

There was an article about a year ago from Amir Taaki titled
"Roadmap for the revolution: the future"
http://bitcoinmedia.com/roadmap-for-the-revolution-the-future/
where he described Bitcoin as settlement system while highlighting the necessity for clearing system as well.

He could not imagine at a time how those other parts of the whole ecosystem would look like, but now a year later we can already see how Ripple can become a clearing system that would offload low-value transactions volume from Bitcoin.

So the question boils down to what is bigger - settlement or clearing system?

If in the long run they become equal in their market shares then for 21 bitcoin today (1 millionth of total supply) one can buy 1M ripples (1 hundred thousandth of total supply) which seems like a good deal.

Ripple Labs

newbie

Activity: 11

Merit: 0

Quote

Back to topic, speculation about XRP Price or the discussion about it is kind of pointless, as OpenCoin acts like a central bank that can issue more of them at will at any time in any amount.

No OpenCoin can never issue any more XRP. In the same way satoshi can never issue more bitcoins.

misterbigg

legendary

Activity: 1064

Merit: 1001

Quote from: herzmeister on March 01, 2013, 03:43:58 PM

Back to topic, speculation about XRP Price or the discussion about it is kind of pointless, as OpenCoin acts like a central bank that can issue more of them at will at any time in any amount.

Well presumably there can never be more than 100 billion of them.

herzmeister

legendary

Activity: 1764

Merit: 1007

I'd say post office stamps are pretty durable, portable, and divisible too, as well as relatively scarce (as far as central banking goes anyway) being pegged to the national currency. They fulfill all requirements for a good currency.

Back to topic, speculation about XRP Price or the discussion about it is kind of pointless, as OpenCoin acts like a central bank that can issue more of them at will at any time in any amount.

misterbigg

legendary

Activity: 1064

Merit: 1001

Quote from: herzmeister on March 01, 2013, 01:46:43 PM

Post office stamps never became a currency really

XRPs are not like stamps. XRPs have these qualities:

Quote

Scarce - There's an upper bound of 100B XRP.
Durable - You can store credits as private keys, back them up and encrypt them.
Portable - You can send them easily anywhere using the Ripple system.
...
Divisible - There are a total of 100 quadrillion drops in the system.

Stamps do not have these qualities. Did you not read the previous posts?

herzmeister

legendary

Activity: 1764

Merit: 1007

Post office stamps never became a currency really, although there are/were lots of stamp collectors.

misterbigg

legendary

Activity: 1064

Merit: 1001

Quote from: herzmeister on March 01, 2013, 01:24:42 PM

XRPs should not become much more expensive than they currently are. They're basically a fee to create an account, and that fee shouldn't be all that high.

Then why do Bitcoins have any value? XRP will have as much value as the market will assign to them. XRPs have all the properties of a currency. Just like Bitcoin. You are wrong. Here are some thoughts from others:

Quote from: Meni Rosenfeld on February 23, 2013, 06:41:21 PM

A few comments...

XRP as a currency.

XRP are not "just" what you use to send Ripple transactions. They are also the only thing you can hold in Ripple which is not an IOU. I think XRP will most definitely be a currency, with a non-negligible total market cap which floats against other currencies. And to understand why you need to look no further than why Bitcoin is/will be a valuable currency.

Bitcoins are valuable because they are in use, and they are in use because they are scarce, durable, portable, fungible and divisible; that is, a good currency. So are Ripple credits:

Scarce - There's an upper bound of 100B XRP.
Durable - You can store credits as private keys, back them up and encrypt them.
Portable - You can send them easily anywhere using the Ripple system.
Fungible - I don't know enough about Ripple but I'll guess all credits are the same.
Divisible - There are a total of 100 quadrillion drops in the system.

XRPs have all it takes to become a good currency, and I believe it will be used as such. A currency also needs to be current, and here psychological factors play a large role - the fact that many of the early adopters don't perceive it as a currency might slow down the process, but it won't stop it.

The fact that, in addition, XRP are what you use to send transactions in Ripple, will help them gain value as Ripple becomes in greater demand.

herzmeister

legendary

Activity: 1764

Merit: 1007

XRPs should not become much more expensive than they currently are. They're basically a fee to create an account, and that fee shouldn't be all that high.

HappyScamp

sr. member

Activity: 314

Merit: 250

My guess is that there are so many unknown potential dynamics that it is probably unpredictable:

as the trust system gains fluidity, it should make the fluidity of BTC much much better.

But then, by extension, it should do the same for other currencies as well.

This adds to the already impossible level of unpredictability regarding BTC previous to Ripple.

Meanwhile the world economy is not exactly in a stable state, with currency wars and rumors of currency wars.

Ripple is an interesting idea. I am holding on to mine for now and using it to help the system by facilitating micro-trusting (see the micro trust thread).

misterbigg

legendary

Activity: 1064

Merit: 1001

Will XRPs appreciate in value faster than Bitcoins? Specifically, what will grow higher in value: $10,000 worth of Bitcoins today or $10,000 worth of XRPs today?

Topic: Ripple: XRP Price Speculation - page 2. (Read 4230 times)