(obviously don't get that holding centralized exchange IOUs).
Why not ? isn't it the same to hold bitstamp IOU on ripple network or ripple IOU on bistamp platform ? the only difference for me is that if you wanna trade on bitstamp you have to withdraw them from ripple, but it takes not even a minute...
I think he just means being in XRP, makes more sense than holding IOU's on or from exchanges that are subject to seizure, failure, etc. While that is true, I could be wrong in what he actually meant.
Yup, that's exactly what I meant. XRP is much much better in a portfolio than exchange IOUs. Exchange IOUs are worth face value in the best-case scenario, so there is no upside risk. But there is much downside in holding IOUs of any particular gateway due to seizure, delays, regulation changes, etc..
face value (market value) =/= best-case scenario..... risks are already priced in. yes, there is upside risk, there. so i dont see the validity of what you are saying. yes, xrp does not have counterparty risk, but it does have speculative risk. similarly, while IOUs have counterparty risk, that is priced into the speculative risk and thus, market price. in this sense, depending on which direction markets go, xrp may be far, far worse in a portfolio than any given IOUs.
