Quote:
Originally Posted by Go Get It
Just want to say that for ripple to have a value of ~$2.00 it would have to have a cap of ~$100MM... Which is basically the same as BTC and ETH's combined cap as of right now.
People think market cap is important. It's irrelevant; it's a measure of total circulation X current price, not a measure of currently invested fiat to date.
So people buying up tens of thousands, hundreds of thousands, etc and storing long term have bought for pittance, say 500,000 XRP for $0.006 as the price was not so log ago, $3,000 dollars investment. That same 500,000 is worth $125,000 at today's (ish) price of $0.25, but only if cashed in. Therefore actual invested market cap remains at $3,000 until it's sold again, at the new value of $0.25. So that's a 'current cap' of $125,000 that looks way over inflated considering the actually invested dollars.
Consider exponential wastage of XRP as use hikes, consider locked up/cold stored XRP, consider transactional bridge-currency use of XRP for over $5 trillion market cap daily forex trades per day (2016 average), consider extension into international liquidity/speed/cost reductions, consider bank adoption rates, consider retail liquidity of XRP (currently basically non-existent on the adoption curve where retail use goes), consider new technology uses, consider escrow storage by Ripple Labs, consider bitcoins terrible real-world pitfalls, consider bank hoarding of XRP and consider increased trade demand on ever increasing crypto exchanges, and all of a sudden theoretical market caps of $1-5 trillion are absolutely feasible.
Remember, just because 100,000,000,000 in 'supply' doesn't equate to 100,000,000,000 daily trade volumes or equal fiat investment mapping.
The reality is that for trading purposes, which largely drives price currently in a low adoption market, we only see daily trade volumes of a few hundred million dollars on market cap of ~$10,000,000,000....
People are stupidly using linear mathematics to limit the price predictions without taking a fuller viewpoint.
I don't necessarily believe XRP will surpass BTC or even ETH for single unit price, but prices well above $1.00 are possible. I mean blimey, it's already been at nearly half that before....people selling big XRP stacks short at $1.00 will regret it in years to come. Bear in mind that a current international transfer costs $35+ and takes three days... compare that to XRP and it's like comparing hobbling on crutches with flight in an Iron Man suit.
My opinion, and it's only exactly that (opinion) is that XRP could hit a value of between $20-50 relatively easily within two years, given adoption rate by the financial institutions of XRP and Ripple platform.
At the bottom end, this could mean a x80-fold price increase for today's investors.