RE: The most important video for Ripple (XRP) investors!
Great video and well explained - however i think you have done a little disservice to Ripple. 1) The XRP escrow release each month is to fund business operations - one would assume that with the current price that they will spend less (number of coins) and that more will be locked up in a new escrow contract. 2) You do not explain that XRP is burnt (a small portion) each time it is used so over time it will indeed disappear 3) The use case for XRP is for interbank transfers to replace the SWIFT network - as such the current circulating amount is never going to be enough UNLESS the tokens are worth a lot more 4) You make it sound like XRP is the only INVENTED token - all of the ICOs have done exactly the same thing - take your ETH and give you their ICO - most of which is premined and which they usually control a good portion of - with Zero visibility into their dilution plans 5) Remember who Ripple is selling to - large banks so they have to have a roadmap and a plan - together with documented plans as to growth, cash burn rate and the like - much more so than any of the other ICOs we see today
Craig
Craig! Thanks so much for your well thought out response. More than I usually get! I'm going to respond to your message in pieces.
It's a smart contract, its all ledger based, that is not how it works. The ripple with be released each month without them having any input on how much they want to release because they've already programmed it to release 1 bil per month. How much of that, that will make it out onto the market is yet to be seen.
I have heard about this, I've yet to been able to find a reliable value for how much coin will be burned for each transaction, I'm assuming it is such a relatively small amount that its impact will be largely negligible for quite a long time. Lets say its a million XRP burned per year (thats ALOT) we still have 999,999,000,000 total supply left...a very tiny drop in the bucket. If you have any more reliable info about this please share!
I think ripple's use case is what makes it the most valuable, that being said, are you aware that the system was originally designed to be used without a token entirely? Why do you need a token to transfer money on a network? Wouldn't it be better for your customers to offer the service without a token at all?
On the contrary, I'm quite aware that there are many coins that are premined or that are not mined at all. I have issues with the longevity of quite a few of them...with the exception of something like ETH because I believe ETH use case is quite revolutionary!
At the very least, I definitely appreciate how much effort and planning and design ripple has put into their product. There have a very slick design and so far their marketing has worked very well for them. I have no doubts that they will be very sucessful as a company. However, for the reasons mentioned in my video, I don't feel that I can reccomend it as a long term investment out of good faith, and I know there are many, many XRP investors who don't understand nearly as much about crypto and XRP as you do, and this video is targeted towards educating them.
Hey Mate - in answer to a couple of your questions
The Tokens are released to the company each month - not to the exchanges - it is up to them to use them as they see fit (by selling onto an exchange as needed) and the rest get locked back into a new smart contract
I will try to find the number for the number of tokens burnt - but it is very small - however if the Interbank market place is $5Trillion per day (US Fed Reserve number) - and Ripple only get 10% of that that is $500B per day, if the avg transaction was $50M (no idea on that but i would guess smaller) then there are 10,000 transactions a day needed to move that - thats when you start burning some serious coins.
You are correct they do not HAVE to use a token on the network - but if they do not then they come back to the same old NOSTRO/VOSTRO accounts that the banks have to keep to guarantee liquidity of the transaction - by instead using a universal (no single bank owns the token) token like XRP they get away from this - high speed pipeline to a market maker, purchase $50M XRP - FIAT straight to market makers account, XRP sent to other end within 4 secs, then sell to a market maker at their end in the currency they want - using Multisig with Ripple being the 2nd party on each transaction - no need to hold escrow amounts.
Craig
Thanks for the information! Believe me, I definitely see the value in the company if the tech is adopted by the banks. I'm just not sold on investing in the token.