Quote:
Originally Posted by starssavior
I think XRP is the one coin that could become more valuable than Bitcoin. Bitcoin cash and Litecoin have nowhere to go but down ultimately. If Ripple can get enough people using their software and it saves them money there is a good chance they will use XRP for some of those transactions. Even if xrapid misses out on gaining a big share of bank level transactions, I think there is an excellent chance that micro payments are going to become a huge source of liquidity on the ripple network. XRP is perfect for micropayments.
While it is true that alt-coins for various projects could become valuable if those projects are successful, it is likely that their absolute value is capped in a similar way that most equities are capped in their value in relation to their market size.
Banks could make massive profits using their payment networks to process payments using xrapid by buying large amounts of xrp in advance of doing it. If a bank would save money by moving say 10 billion dollars more efficiently without owning xrp, think of how much extra they could make if they bought xrp super cheap before they started using xrapid.
Even with lightning Bitcoin is too expensive and slow for micro payments and Point of Sale transactions. It's a good store of value and it's well known.
I think in the end the three coins left standing with significant value will be etherum, bitcoin, and xrp. Everything else will face barriers or go down.
I have a very primitive understanding of xrapid, and it's difficult to find simplified explanations anywhere on the web.
AFAIK, Ripples claims Xrapid will effectively replace the >$5trln of banks money stuck in NOSTRO accounts. Supposedly, banks will use XRP to source liquidity instead of keeping reserves in foreign accounts.
At first glance, I see three problems:
1) Regulatory risk. XRP was issued by a US company and will probably be regulated as a security.
2) If there is no incentive for banks to actually hold XRP, how will sourcing alone put upward pressure on price?
3) Apparently, there are reasons apart from FX wires for banks to want Nostro accounts. Banks that trade in foreign markets want to fund/settle/hedge in the host currency.