Topic: [XRP] Ripple Speculation - page 548. (Read 637292 times)
Quoting from the same pdf paper in search of the Pool term:
pg 5
"By consolidating liquidity to service international payments from many, disjointed, international
nostro accounts into one XRP pool, respondent banks allocate less total liquidity to service the
same volume of global payments. Here is how:
• The bank only has to hold its domestic currency and maintain one account with XRP.
• The bank only needs enough XRP on hand to service its largest expected payment obligation.
• By making markets directly between its domestic currency and XRP, the bank minimizes the
number of intermediaries involved and their markup on spreads."
From above it is clearly stated that to use XRP the bank needs XRP!
pg 13
"Just as the redundancy of nostro accounts needed to service international payments for
correspondent banks can be consolidated into one XRP pool, financial institutions can begin
to consolidate collateral accounts needed to participate in different markets into single XRP
positions that can provide one point of interchange to every other financial instrument.
Ripple technology can then eliminate settlement risk and reconciliation costs as transactions
move between systems, releasing billions of dollars annually back into the economy while
strengthening financial stability."
Again the financial institution needs to have an XRP position
So if you hold or own or borrow XRP to excecute the fast transactions then you are exposed to currency price swings of XRP.
By the way stop spreading this lies about: "with 4 days + ack time and confirmation times" That is pure lies.
I send Bitcoin to and from my wallet every day and only takes from a few minutes to one hour max. There may be rare occasions in which it may take two hours, but 4 days (what a lie)
It seems that you need to study and update yourself a little more about how bitcoin works in the real world.
pg 5
"By consolidating liquidity to service international payments from many, disjointed, international
nostro accounts into one XRP pool, respondent banks allocate less total liquidity to service the
same volume of global payments. Here is how:
• The bank only has to hold its domestic currency and maintain one account with XRP.
• The bank only needs enough XRP on hand to service its largest expected payment obligation.
• By making markets directly between its domestic currency and XRP, the bank minimizes the
number of intermediaries involved and their markup on spreads."
From above it is clearly stated that to use XRP the bank needs XRP!
pg 13
"Just as the redundancy of nostro accounts needed to service international payments for
correspondent banks can be consolidated into one XRP pool, financial institutions can begin
to consolidate collateral accounts needed to participate in different markets into single XRP
positions that can provide one point of interchange to every other financial instrument.
Ripple technology can then eliminate settlement risk and reconciliation costs as transactions
move between systems, releasing billions of dollars annually back into the economy while
strengthening financial stability."
Again the financial institution needs to have an XRP position
So if you hold or own or borrow XRP to excecute the fast transactions then you are exposed to currency price swings of XRP.
By the way stop spreading this lies about: "with 4 days + ack time and confirmation times" That is pure lies.
I send Bitcoin to and from my wallet every day and only takes from a few minutes to one hour max. There may be rare occasions in which it may take two hours, but 4 days (what a lie)
It seems that you need to study and update yourself a little more about how bitcoin works in the real world.I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
And i repeat to you once again, you have some very basic understanding wrong, and in all humility, one "DOES NOT" need to have 1 million ripples to send 1 million 'dollars'. One ought to have 1 million 'dollars' to send 1 million 'dollars'
Which is exactly i pointed out, when value of ripple comes into action. I hope the point gets across this time else you come of as really either not reading what is said, or perhaps strongly biased in your mind.
Bitcoin is purely store of value, it is so bad for transfer mechanism, with 4 days + ack time and confirmation times. Why ? it is not made for transaction, it is made for proving value by work. although the work is useless , which is an evolution to things like Etherium where work is promised contract code.
Anyway having that aside, still the funniest thing is ripple will probably be the most stable currency, because once it gains transaction properties in real markets, there will be large needs of reserve maintenance by various entities (market makers, FI's, central banks etc )
what part of my explanation are you NOT getting ?
and your have put borrowing xrp in a totally wrong sense, 'You' DON't borrow it for holding, it is 'BORROWED' on the RCL during the Byzantine agreement and consensus process to promise 'counter-party' ( which is what eliminated counter party risk ). This borrowing happens for 45 seconds at 'most'. current on-ledger confirmation is around 1000 tx/second. What are you taking about ?
Don't you see the clear definition of 'POOL' in the cost model PDF you have pasted above ?
I know its hard to imagine for traditionalist's who see a crypto-currency as a computerized form of 'piece' of something. but value can also be derived by properties and knowledge that is implemented in the mathematics that guarantees certain terms and conditions ( all consensus algorithms that guarantee 'counter-party' risk elimination )
you need to study and update yourself, and i am saying this not out of dis-respect, but you truly are getting things in a very naive and wrong manner. take time, study a bit.
good luck
This is bullshit! Here is what he responded:
"the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable."
But the fact is that someone has to own XRP to settle the transactions. Let me quote from the XRP cost model itself (https://ripple.com/files/xrp_cost_model_paper.pdf)
From pg 9
"Institutional Cost Savings Using
Ripple and XRP
Now let’s evaluate cost savings to our representative bank using Ripple and XRP as a universal
bridge asset. The cost model below assumes our same respondent bank converts 50 percent
of its payments-related float into XRP after implementing Ripple, custodying the XRP itself.
Banks can either source and custody XRP themselves or contract third-party liquidity providers.
Currency hedging is the only cost with an initial, short-term increase due to the potential higher
volatility of XRP as a new asset. As XRP gains usage, this volatility is expected to trend downward."
So it clearly states that you either own it or borrow it. Either way you are exposed to the volatility of the XRP alt coin.
"the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable."
But the fact is that someone has to own XRP to settle the transactions. Let me quote from the XRP cost model itself (https://ripple.com/files/xrp_cost_model_paper.pdf)
From pg 9
"Institutional Cost Savings Using
Ripple and XRP
Now let’s evaluate cost savings to our representative bank using Ripple and XRP as a universal
bridge asset. The cost model below assumes our same respondent bank converts 50 percent
of its payments-related float into XRP after implementing Ripple, custodying the XRP itself.
Banks can either source and custody XRP themselves or contract third-party liquidity providers.
Currency hedging is the only cost with an initial, short-term increase due to the potential higher
volatility of XRP as a new asset. As XRP gains usage, this volatility is expected to trend downward."
So it clearly states that you either own it or borrow it. Either way you are exposed to the volatility of the XRP alt coin.
hmm.... I think I know what you're getting at maybe I can answer this.
I heard that XRP will be used on markets for liquidity but it won't affect transaction prices. As in, XRP will be used as the payment channel, but you won't be actually paying extra for whatever price XRP is because you are trading a currency on its system and burning XRP for every ripple transaction that doesn't use XRP.
So in theory I would think the supply goes down, price may go up, but the coin is just being used to transact other coins and therefore the price doesn't reflect say somebody buying 1,000 transacts of Bitcoin from USD in a second because they're not directly trading in XRP. At least that's how I have understood it.
After re-reading. No you don't have to own XRP, you are misreading. If you want to use the Ripple networks, like the banks are ALREADY DOING RIGHT NOW, then XRP will be used as the payment channel. You do not need to own XRP to trade bitcoin to bitcoin or bitcoin to usd, but XRP will still be used in those transactions.
RayX12..we hear ya ...
please be a sensible troll
lols
please be a sensible troll
lols
This is bullshit! Here is what he responded:
"the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable."
But the fact is that someone has to own XRP to settle the transactions. Let me quote from the XRP cost model itself (https://ripple.com/files/xrp_cost_model_paper.pdf)
From pg 9
"Institutional Cost Savings Using
Ripple and XRP
Now let’s evaluate cost savings to our representative bank using Ripple and XRP as a universal
bridge asset. The cost model below assumes our same respondent bank converts 50 percent
of its payments-related float into XRP after implementing Ripple, custodying the XRP itself.
Banks can either source and custody XRP themselves or contract third-party liquidity providers.
Currency hedging is the only cost with an initial, short-term increase due to the potential higher
volatility of XRP as a new asset. As XRP gains usage, this volatility is expected to trend downward."
So it clearly states that you either own it or borrow it. Either way you are exposed to the volatility of the XRP alt coin.
"the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable."
But the fact is that someone has to own XRP to settle the transactions. Let me quote from the XRP cost model itself (https://ripple.com/files/xrp_cost_model_paper.pdf)
From pg 9
"Institutional Cost Savings Using
Ripple and XRP
Now let’s evaluate cost savings to our representative bank using Ripple and XRP as a universal
bridge asset. The cost model below assumes our same respondent bank converts 50 percent
of its payments-related float into XRP after implementing Ripple, custodying the XRP itself.
Banks can either source and custody XRP themselves or contract third-party liquidity providers.
Currency hedging is the only cost with an initial, short-term increase due to the potential higher
volatility of XRP as a new asset. As XRP gains usage, this volatility is expected to trend downward."
So it clearly states that you either own it or borrow it. Either way you are exposed to the volatility of the XRP alt coin.
Can one of you XRP pumpers explain how can a bank use XRP as a currency when there is so much volatility?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!""
So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!"
" So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable.
I suggest you to read various settlement papers and whitepapers released in ripple insights and various poc documents. To add to all this, Ripple is the tech and rails on which BTC will be enabled in japan. because point of sales cannot use BTC with 4 day confirmation. they need to get confirmation faster of their payments, even todays credit cards guarantee queue position and confirm in a few hours.
What an irony, Ripple is carrying BTC in tis rails in japan along with other assets.
Too much misinformation in here. People, please study yourself. ripple is the real deal, no body needs to pump anything. Its not a shady coin used on onion and darkweb. it if for regular everday life.
I agree. I already explained to that poster above, and he still didn't get what I was saying. Most likely a troll.
Not a troll. I am interested and I have read the papers but the volatility issue is not properly explained or handled in my view.
... and apparently neither of you have any idea on how this volatility issue will be handled. That is the un-answered question!
Its the comment you quoted by formdeep maybe you didn't read all the comments but he answers your question directly.
I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
omg wow, your so smart, maybe you should tell ,Japan’s largest bank, MUFG. Bank of England,Abu Dhabi and many more..aswell as google,seagate and samsung.The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
go to their twitters, tell their ceos what you know.
Not really, just curiosity on how this will be handled.
It was already explained to you.
Where?? Can you be so kind as to copy paste the explanation? I cant find it.
I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
omg wow, your so smart, maybe you should tell ,Japan’s largest bank, MUFG. Bank of England,Abu Dhabi and many more..aswell as google,seagate and samsung.The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
go to their twitters, tell their ceos what you know.
Not really, just curiosity on how this will be handled.
It was already explained to you.
I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
omg wow, your so smart, maybe you should tell ,Japan’s largest bank, MUFG. Bank of England,Abu Dhabi and many more..aswell as google,seagate and samsung.The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
go to their twitters, tell their ceos what you know.
Not really, just curiosity on how this will be handled.
I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
omg wow, your so smart, maybe you should tell ,Japan’s largest bank, MUFG. Bank of England,Abu Dhabi and many more..aswell as google,seagate and samsung.The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
go to their twitters, tell their ceos what you know.
I insist and repeat my statement:
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
Can one of you XRP pumpers explain how can a bank use XRP as a currency when there is so much volatility?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!""
So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!"
" So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable.
I suggest you to read various settlement papers and whitepapers released in ripple insights and various poc documents. To add to all this, Ripple is the tech and rails on which BTC will be enabled in japan. because point of sales cannot use BTC with 4 day confirmation. they need to get confirmation faster of their payments, even todays credit cards guarantee queue position and confirm in a few hours.
What an irony, Ripple is carrying BTC in tis rails in japan along with other assets.
Too much misinformation in here. People, please study yourself. ripple is the real deal, no body needs to pump anything. Its not a shady coin used on onion and darkweb. it if for regular everday life.
I agree. I already explained to that poster above, and he still didn't get what I was saying. Most likely a troll.
Not a troll. I am interested and I have read the papers but the volatility issue is not properly explained or handled in my view.
... and apparently neither of you have any idea on how this volatility issue will be handled. That is the un-answered question!
i already answered, please elaborate what is your question.
The transfer from initialization, to path commitment to settlement takes 30 to 40 seconds internationally between any currency pair (n-2-n ) . So dosen't matter whast the price of xrp is.
where it does matter is for hold accounts, also nastro accoutns and rendered useless due to advanced byzantine that does not need holding and can guarantee same commitment on settlement.
What are you talking about ? explain your question please
The fact that its been answered by you and he completely disregards what you said to him smells like troll to me, a very sneaky troll tho.
Can one of you XRP pumpers explain how can a bank use XRP as a currency when there is so much volatility?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!""
So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!"
" So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable.
I suggest you to read various settlement papers and whitepapers released in ripple insights and various poc documents. To add to all this, Ripple is the tech and rails on which BTC will be enabled in japan. because point of sales cannot use BTC with 4 day confirmation. they need to get confirmation faster of their payments, even todays credit cards guarantee queue position and confirm in a few hours.
What an irony, Ripple is carrying BTC in tis rails in japan along with other assets.
Too much misinformation in here. People, please study yourself. ripple is the real deal, no body needs to pump anything. Its not a shady coin used on onion and darkweb. it if for regular everday life.
I agree. I already explained to that poster above, and he still didn't get what I was saying. Most likely a troll.
Not a troll. I am interested and I have read the papers but the volatility issue is not properly explained or handled in my view.
... and apparently neither of you have any idea on how this volatility issue will be handled. That is the un-answered question!
i already answered, please elaborate what is your question.
The transfer from initialization, to path commitment to settlement takes 30 to 40 seconds internationally between any currency pair (n-2-n ) . So dosen't matter whast the price of xrp is.
where it does matter is for hold accounts, also nastro accoutns and rendered useless due to advanced byzantine that does not need holding and can guarantee same commitment on settlement.
What are you talking about ? explain your question please
...
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
The problem of course is not in the time of settlement as you have pointed. The problem is that in order to send a million dollars, you need to "own" a million dollars in XRP or you need to "borrow it" from an institution.
So now you are exposing the bank balance sheet to the volatility of XRP during the time that you own it or borrow it.
Can one of you XRP pumpers explain how can a bank use XRP as a currency when there is so much volatility?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!""
So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
The bank executive explaining the transfer:
"Opps sorry sir we sent a million dollars but by the time we converted back to dollars you only got 990,000. So you lost 10,000 in that transaction. That is only a 1% loss due to volatility in the XRP coin!"
" So what mechanism are they going to use to hold volatility down? Does any of you understand how this can work?
the carrier technology uses XRP to bridge chains during settlement, Day to day volatility does not come into play at all.
and given the settlement happens dynamically in like under 30 seconds ? the only volatility that is visible during the transaction is the 30 seconds volatility. in other words- ZERO impact of volatility.
where volatility actually hurts is when settlement and confirmation takes hours and days. ( Ex: BTC). the sent value and receiving value is broken and unpredictable.
I suggest you to read various settlement papers and whitepapers released in ripple insights and various poc documents. To add to all this, Ripple is the tech and rails on which BTC will be enabled in japan. because point of sales cannot use BTC with 4 day confirmation. they need to get confirmation faster of their payments, even todays credit cards guarantee queue position and confirm in a few hours.
What an irony, Ripple is carrying BTC in tis rails in japan along with other assets.
Too much misinformation in here. People, please study yourself. ripple is the real deal, no body needs to pump anything. Its not a shady coin used on onion and darkweb. it if for regular everday life.
I agree. I already explained to that poster above, and he still didn't get what I was saying. Most likely a troll.
Not a troll. I am interested and I have read the papers but the volatility issue is not properly explained or handled in my view.
... and apparently neither of you have any idea on how this volatility issue will be handled. That is the un-answered question!
Jump to: