First, some technicals. We can note that the selling pressure of everything else was to much for the continuation triangle to take hold and start a move up. If we look to RSI for some guidance we can see in the immediate past that a low RSI yielded a move up in both cases. A substantial move in one of them. I think it's unlikely that we will get that great a move this quick this time, but it's entirely possible. A lot of charts are setting up for potentially a large move. In order for a large move to the upside to happen, we need to break this downward gold trend line. For a significant move to the upside, this 60 cent level needs to be breached.
Keep reading if you want to read some Ripple opinions and possible controversy.
A lot of crypto people think that Ripple derives it's value from the potential use it has as money throughout the world. I am here to tell you that's incorrect. Ripple doesn't derive it's value from it's function as money. But from it's function as infrastructure in the current monetary system. There is a big difference. Let me give you an example to illustrate this point.
Right now international bank wires cost around $45 a pop to do. It probably costs the bank $30 per transaction in infrastructure, personnel, etc... to do it. If the bank can cut their cost to $1 per transaction by buying Ripple's infrastructure. They save $29 per transaction. If they are doing 1 million transactions a month, they are in essence saving 29 million dollars per month. How much do you pay to save 290 million per year? In Ripple's case you are buying the infrastructure to save on those expenses. Not necessarily that it has future value as money. But it has future value that it will save money and be more efficient in the long run. Would the bank buy 30 million ripple's at $1 to have that infrastructure to save 300 million a year? Absolutely. Would they buy 30 million ripple's at $5, 150 million total, to save 300 million a year. Absolutely. How high are the banks willing to pay? Do they just buy and sell when needed? I think they would keep a massive amount on hand to meet demand just on a monthly basis. Around $5 to save massive amounts of money is very reasonable and a discounted price to save that much money in the above scenario I outlined.
Bottom line, I think Ripple should be easily priced at $1 and higher. The question in my mind is fairly priced to the bank at 5, 10? What's the value of so much money being saved?
This is where I think Ripple's value comes in. As a business. Not as a "global currency" per se.
What do you think?
-Sherem
Keep reading if you want to read some Ripple opinions and possible controversy.
A lot of crypto people think that Ripple derives it's value from the potential use it has as money throughout the world. I am here to tell you that's incorrect. Ripple doesn't derive it's value from it's function as money. But from it's function as infrastructure in the current monetary system. There is a big difference. Let me give you an example to illustrate this point.
Right now international bank wires cost around $45 a pop to do. It probably costs the bank $30 per transaction in infrastructure, personnel, etc... to do it. If the bank can cut their cost to $1 per transaction by buying Ripple's infrastructure. They save $29 per transaction. If they are doing 1 million transactions a month, they are in essence saving 29 million dollars per month. How much do you pay to save 290 million per year? In Ripple's case you are buying the infrastructure to save on those expenses. Not necessarily that it has future value as money. But it has future value that it will save money and be more efficient in the long run. Would the bank buy 30 million ripple's at $1 to have that infrastructure to save 300 million a year? Absolutely. Would they buy 30 million ripple's at $5, 150 million total, to save 300 million a year. Absolutely. How high are the banks willing to pay? Do they just buy and sell when needed? I think they would keep a massive amount on hand to meet demand just on a monthly basis. Around $5 to save massive amounts of money is very reasonable and a discounted price to save that much money in the above scenario I outlined.
Bottom line, I think Ripple should be easily priced at $1 and higher. The question in my mind is fairly priced to the bank at 5, 10? What's the value of so much money being saved?
This is where I think Ripple's value comes in. As a business. Not as a "global currency" per se.
What do you think?
-Sherem
Comment:
Previous idea for reference.
Comment:
If we zoom in a bit we can see that ripple is coming down to support and will likely move up again soon.