This is incorrect, sorry dude! If all 100b XRP was available right now, the price would plummet as supply would be drastically increased. Even as they release 1b XRP per month, you can expect the price to decline unless exuberance is so insane that it outpaces the increased supply.
They're literally acting like The Fed in this scenario, except in this situation there's a cap to how much they can release ;)
~ Kevin
It was never stated that they all were available right now, in fact it says just the opposite in the very last paragraph.
Well said dude, ripple is the most centralised coin in the cryptosphere, banks will handle it as they want and one tool is by putting less or more supply at the market, controlling the scarcity of a coin is a way to control its price.
Agree. Add to that the fact that banks do not have to use XRP and you have a completely different picture to the investing puzzle. Ripple the company? Could take off. XRP? I wouldn't bet on it personally.
"[banks] controlling scarcity" not different to a whale controlling it...don't be biased. Also, Ripple have said many times, YES the banks do not have to use it, BUT why wouldn't they if it saves them money and has a crap ton of liquidity?
We'll see. It's a HUGE IF.
? its been confirmed today. I touched on it here if you want to find out more: https://steemit.com/ripple/@guidescrypto/05-01-18-crypto-recap
Its not banks but close enough right?
Personally, I use RIPPLE for pure trading, I am not hodling but getting more an more profits, for me is just a powerfull tool nowadays just get money...
by the other side, I am sad to see that many people believe on it....
it would only plummet if they put them on the market...if they aren't locked up but aren't on market the price wouldn't change
Right, but then claiming that "technically" it's the highest value crypto is false, because you're applying current market price to total supply, not circulating supply.
agreed, its an evaluation of the total worth that doesn't apply when selling
Right. For example, Stellar is worth $0.72c right now. Circulating supply is 17.9b. Total supply is 103.5b. So should we say its true valuation is $74b (0.72*103.5b)? Definitely not. Same goes for Ripple / any other coin.
The point was that the coins technically already exist. The coins yet to be mined don't "technically" exist yet. It was all based on technicalities, not to be taken literal, which you seem to be missing.
Right, but I could make the same argument for the diamond industry. X diamonds are cut and available for sale in stores, X+Y diamonds are cut total (there are MANY multiples more diamonds mined + cut than available for sale).
Say average price of a diamond is $500 for the example's sake.
There are 1 million diamonds available for sale, so circulating supply market cap is $500m. But there are 10m more diamonds already mined, but held in a vault. It would be silly to say that the market cap for diamonds is now $500 * 11 million (1 million circulating + 10m yet to be released, but existing).
Because if they were released, even in chunks that would depress the market price and the calculation would be completely different.
So the only universe in which XRP is the largest market cap coin is one in which they release 100% of existing coins and demand keeps price perfectly stable, which is more or less an impossibility from an economic standpoint.
Yes you could make that same argument. The post had nothing to do with whether or not those extra 61 billion coins could come into the market or what those might do to the price. In fact, it states right in there in the post that they are restricted and only slowly being added to the market much the same way new bitcoins are mined. However, the process is very different. Which was more or less the point, hence all the "technicalities".
If all 100b XRP was available right now, the price would be whatever it's going to be due to supply AND demand.
Correct, which is what I meant when I said "...you can expect the price to decline unless exuberance is so insane that it outpaces the increased supply."
Yeah, I read what you posted. You basically wrote "this post is incorrect unless it isn't." You disproved nothing @jrcornel wrote.
I mean, if that's how you want to interpret it. His entire post is assuming that if 100% of supply was circulated today, that price would remain the same thus price x total supply = market cap = "technically" bigger than Bitcoin. If you can't see the logical flaw in that type of reasoning...dunno what to tell you.
If 100% of the supply was circulated today at the same price, it would be a larger market cap. It's not hard to get this. I think a) you don't believe that demand would allow for the price he imagines, and b) you're just looking for something to disagree with.
Of course I don't think demand would keep up with a 60 billion coin increase in supply...that would be an unnecessary and stupid assumption. See the diamond point I made above, same logic. No one would ever speak like this in a market outside of crypto.
This is all hypotheticals. The fact that you're getting so worked up about this is hilarious.