I Was going to wait to make this video, but there's been a crazy unnatural rise in the price of XRP Reaching the second highest spot in the coin market cap was one of the most unexpected things to happen in this space The irony is that Bitcoin and crypto currencies were born out of the economic crash of 2008 caused by the banks The promise was to replace the banks everyone was now their own bank.
A world free from the unnecessary financial middlemen Fast-forward to today, when XRP is the second highest market cap Directly after Bitcoin. a coin that is solely designed to help the banks maintain their position There's a huge misunderstanding That ripple and XRP are the same thing. They're not. Ripple labs Creates Network platforms to improve modern banking systems and increase their profit margins They currently have a few different systems in Ripple Net, including inter ledger xCurrent xRapid and xVia Whenever you hear that banks are using Ripple, It is Ripple Net products.
Not XRP Only one of these has a real use case for XRP. xRapid. It's used as a ledger system, or bridge currency. Not as a currency to purchase goods with. The places where XRP can be used are not unique to XRP Pretty much any other token could be used. It's almost like a test token or place holder Profits from these various platforms goes to ripple labs Not XRP token holders.
Your tokens aren't shares, and they aren't necessary for the system. So what is the primary use case for XRP if it isn't for the banks to use? Funding. Unlike most cryptocurrencies, 100% of the 100 billion XRP tokens were created out of thin air 20 billion for the founders personally and 80 billion for ripple labs Not mined, not backed by any commodity. Simply created and sold to the public at 100% profit to fund their developments XRP is designed to be hyper deflationary. Whenever it's moved, a small portion is destroyed. Any wallet that you open must be "Activated" by binding 20 tokens to the wallet These cannot be spent withdrawn or transferred. These actions make the tokens still in existence slightly more scarce slightly raising the value of each coin Namely the 60% still held by ripple labs Every time you use XRP tokens, you raise the value of their majority holdings. So even if it isn't created to be a currency, how does XRP fair as one? It's 100 percent premined, with 60% being held by the creators There's no staking, no mining, no incentive structure, It has a completely private blockchain It's extremely centralized.
You must permanently lock up 20 tokens to activate a wallet. Around $50 currently Ripple plans on requiring your identity to be bound dear wallet in the future, and it isn't actually a cryptocurrency It brings nothing new to the table and falls short of pretty much any other coin in the top 100 spots So why is the price going up? People are assuming the banks are going to want their XRP and drive up the price But if the banks or market makers want any, they'll be buying the 60% that ripple labs has They wouldn't need a majority holding, or else it wouldn't be designed to be hyper deflationary. If there's a shortage then ripple labs would just create more. There's no distributed consensus to decide on it There is not a likely scenario where the banks go out on the open market and buy small amounts of XRP at a time XRP is a token that may or may not ever be used, that is 100 percent premined Designed to fund ripple labs for the development of products that improve the banking industry You bought the equivalent of a Chuck-E-Cheese token, except you can't play the games BitThink.info