XRP is being used by banks and whales as a holding station for BTC money. They move BTC money into Ripple to cash in on BTC futures (currently short) positions, keeping BTC price within range of short positions. They soon go long and flood the money out of Ripple into BTC sinking all the people who don't get this and bought Ripple high. They will do this again and again, back and forth between Ripple and BTC to take advantage of futures and cause dramatic swings to shake out the little guys. Use this knowledge to your advantage and when Ripple starts to go down, move to BTC. When BTC starts to crash, move to Ripple and ride the wave up with all the bank $$.
I have tested this theory for the last two big dips in December and it held and was exactly reverse correlated...check into it yourself. Also, Ripple is remaining high and steady without a pull back as btc is remaining low and steady without any significant upticks. Also, please note January's BTC futures range on CME is High 15470 to low 14205. We are EXACTLY staying in that range. When the these shorts settle, I expect a flip to long positions in Feb. some time and a huge rush upward and out of Ripple. Be prepared. Her is the link to the CME futures prices: http://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html
You are an idiot - there are no Futures Short contracts allowed at this point by either Exchange - if you theory was correct we would see a huge number more Futures contracts
Interesting I will keep an eye on the market. I did a video after the christmas flash correction pointing out something very similar. I noticed that most of the money flowing out of BTC at the time was flowing into ripple. If you look at the charts, it was almost exactly 60bil that left BTC then flowed into ripple within the next 2 days! That was why I got into ripple and rode up the profits then I got out after bitcoin settled a bit.
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! Thanks so much for your well thought out response. More than I usually get! I'm going to respond to your message in pieces.
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.
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.
You do not explain that XRP is burnt (a small portion) each time it is used so over time it will indeed disappear
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!
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
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?
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
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!
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
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.
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.
"Wow, look at this coin, it's among the top 5! Wow look at the gorgeous titles of top bank partners! Wow, look at how cheap the coin is!" ...What coin could dare compete? The coin was born to be a noobie magnet.
One thing about Korean market: people here value so much of titles and brands. There was a time when we had an enourmous push for ETH price. People here got fascinated by the titles of Enterprise Ethereum Alliance. Lucky ETH deserved the position with all their development efforts and top notch team, platform assets etc. But look at what happens when you do this [* Price Excluded] on:
I read your post, you make some good points. Lots of folks making strange and silly assumptions about Ripple. This whole topic has been heavily on my mind these past few days. I just made a video short of condensing all my thoughts on the matter if you're interested.
What you said make sense and I understand what you're saying....but isn't there a subtle difference between "non-scam" ICOs and XRP? Ripple network is a currency agnostic, meaning you should not hold XRP to be able to transact in the network, you can do USD, EUR etc...Now they created 100 billion of a token then can basically do the same thing as the rest of the cryptocurrencies (i.e. transferring values without third party) but with a centralized entity.
XRP is being used by banks and whales as a holding station for BTC money. They move BTC money into Ripple to cash in on BTC futures (currently short) positions, keeping BTC price within range of short positions. They soon go long and flood the money out of Ripple into BTC sinking all the people who don't get this and bought Ripple high. They will do this again and again, back and forth between Ripple and BTC to take advantage of futures and cause dramatic swings to shake out the little guys. Use this knowledge to your advantage and when Ripple starts to go down, move to BTC. When BTC starts to crash, move to Ripple and ride the wave up with all the bank $$.
I have tested this theory for the last two big dips in December and it held and was exactly reverse correlated...check into it yourself. Also, Ripple is remaining high and steady without a pull back as btc is remaining low and steady without any significant upticks. Also, please note January's BTC futures range on CME is High 15470 to low 14205. We are EXACTLY staying in that range. When the these shorts settle, I expect a flip to long positions in Feb. some time and a huge rush upward and out of Ripple. Be prepared. Her is the link to the CME futures prices: http://www.cmegroup.com/trading/equity-index/us-index/bitcoin.html
You are an idiot - there are no Futures Short contracts allowed at this point by either Exchange - if you theory was correct we would see a huge number more Futures contracts
Interesting I will keep an eye on the market. I did a video after the christmas flash correction pointing out something very similar. I noticed that most of the money flowing out of BTC at the time was flowing into ripple. If you look at the charts, it was almost exactly 60bil that left BTC then flowed into ripple within the next 2 days! That was why I got into ripple and rode up the profits then I got out after bitcoin settled a bit.
@cryptovestor Would love it if you have time to check out my video, you inspired me to start creating this kind of content.
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.
Very well said, and a very important piece of information regarding stellar lumens that also highlights ripple's true nature.
"Wow, look at this coin, it's among the top 5! Wow look at the gorgeous titles of top bank partners! Wow, look at how cheap the coin is!" ...What coin could dare compete? The coin was born to be a noobie magnet.
One thing about Korean market: people here value so much of titles and brands. There was a time when we had an enourmous push for ETH price. People here got fascinated by the titles of Enterprise Ethereum Alliance. Lucky ETH deserved the position with all their development efforts and top notch team, platform assets etc. But look at what happens when you do this [* Price Excluded] on:
"Bithumb XRP/KRW; 24h Vol. $893,653,000; [* $3.94]"
The result you get:
$2.65 USD (-17.77%)
I wrote this before seeing your vid. I'd be interested in your thoughts...
https://steemit.com/ripple/@lighteater/taking-apart-the-ripple-conspiracy
I read your post, you make some good points. Lots of folks making strange and silly assumptions about Ripple. This whole topic has been heavily on my mind these past few days. I just made a video short of condensing all my thoughts on the matter if you're interested.
https://steemit.com/crypto/@hvlyarmedtrader/in-a-battle-of-ripple-vs-bitcoin-who-will-win#comments
Nice one - watched, commented and upvoted ;-)
I loved the video and recommend it to anyone holding or interested in Ripple (Xrp). Very coherent, great delivery, looking forward to your next post.
Thanks so much! Really appreciate your feedback!
Great video. Love it.
Thanks to this video.
Makes me feel good for not buying XRP :)
Great way of comparing stocks vs xrp.....thank you!
You do realise that ALL ICOs are exactly the same as this - we have no ownership in any of the companies - nor control of their token releases etc
What you said make sense and I understand what you're saying....but isn't there a subtle difference between "non-scam" ICOs and XRP? Ripple network is a currency agnostic, meaning you should not hold XRP to be able to transact in the network, you can do USD, EUR etc...Now they created 100 billion of a token then can basically do the same thing as the rest of the cryptocurrencies (i.e. transferring values without third party) but with a centralized entity.
Nope you need to read up on Nostro/Vostro account and the SWIFT interbank transfer system to understand why the "independent" token is the way to go
Loved The real talk on ripple. When will the altcoin exuberance end? Will Bitcoin suck up the growth eventually?