My understanding is there are two components: the Ripple protocol and XRP tokens. The tokens assure people using the protocol that their transactions will complete as expected. And Ripple subsidizes the use of XRP by large institutions. So, I understand that you don't need XRP to use the protocol...the big question is whether there's value in holding XRP. If nobody uses the token, it will be useless. If institutions use the token, it will be huge. And, if banks are using XRPs for international finance, international companies will have incentive to hold some XRPs to guarantee low-cost, low-risk payments instantly in any locality without having to use any intermediary.

Sounds like you're well-informed about all of this. I look forward to reading more of your posts.