How Ripple could succeed but XRP be worth nothing | Hacker News Reader

How Ripple could succeed but XRP be worth nothing

publication.widmerdun.com

38 points0x4f3759df8 comments

This article seems to make the case not that XRP could be worth nothing, but that XRP will most likely be worth nothing, that it is very unlikely that banks would tie their entire international trading system to a speculative currency. Is this bullshit, or is the gigantic spike in interest in ripple just speculation?

If banks do end up using xcurrent without xrp is there any benefit to xrp, such as easy transfer using xcurrent, or will it just end up a dead fork, or at best a speculative store of value with no special features?

Quote from the article:

"Unfortunately the cost savings provided by XRP are not very high when compared to the risks of adopting it. In the best case scenario XRP would save banks an additional 33% over xCurrent."

So, according to the author, using XRP could save banks up to 33% in costs. His argument for saying that won't happen is that its too risky. Ripple (the company's) argument against that is they have escrowed away most of XRP and will release it at very specific intervals. They are very motivated to keep the currency stable. At higher prices, and higher volumes, that will happen.

Your argument seems to pivot from the banks claim that it's too risky to saying that Ripple can solve the volatility problem. While volatility is a big problem, I don't think it's the only (or even the largest) risk to banks using it.

I was assuming that the risk mentioned was volatility. What other risks are you thinking of?

Yeah, their tech is useful to the industry, that said the coin is a liability for a bank.

I see a future where banks exchange value with 1coin=1USD to speed up transactions but not using the value of XRP.

Plus for a random user making an investment, XRP not been a public blockchain is a no go for me.

They can hardfork / print money as they please.

I think that the most successful cryptos will be successful with no or little value.

The use cases don’t really care what the value is to successfully complete, they just need stability.

So XRP can be with a cent and be extremely useful for its purpose. It is actually less useful if the price appreciates quickly as transferring unpredictable amounts for settlement is difficult.

It's interesting how XRP enables any group of individuals to nearly have the same remittance abilities as international banks. I think that if XRP doesn't get taken up by banks, there may still be a large enough market for Western Union style transfers for personal international payments.

There's a lot of crypto celbs getting rich on XRP at the expensive of those believing the hype, pump and dump.

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