What You Should Know About Ripple & XRP - [for DYOR]
Posted Oct 7, 2020 03:13 AM
Hey guys,So I wanted to post some reference points & information that would be resourceful for users to DYOR. If you have any questions as well, feel free to PM me.
Disclaimers:
- I am not affiliated with Ripple or XRP
- ALWAYS DYOR [Do Your Own Research]
- In the event you ever invest in ANYTHING, only invest what you can afford to lose.
Keywords to Research:
- Centralized Banking (A/The party, the practice of, and the effects)
- Inflation (general economics term)
- Quantitative Easing (QE) (a practice done by central banks to regulate an economy)
- The Howey Test (relating to SEC regulations, and what deems an asset as a commodity or security)
- CBDC [central bank digital currency] (what it is, and what nations have one ready, which nations will deploy)
- FIAT currency (just for general understanding)
- ISO20022 -> banking protocol that some cryptos can are compliant on. Why is this important?
- SDR (special drawing rights)
- IMF | World Bank | World Trade Organization (good to know what they are)
- SWIFT (look up the amount they process a day, and what they are, and how long they've been around)
- SME (Small & Medium enterprises)
- Cross Border/Remittance Payments
- FIs (financial institutes)
- Lobbying (the act of from private corporations)
- R3's Corda (R3 = company, Corda = consortium)
- Bear & Bull Markets (cyclical)
- What is DLT (distributed ledger technology)
- What is Interledger Protocol (ILP)
XRP:
1. Potentially a bridge currency between FIAT/CBDC, and cryptos. I didn't say "the" but "a".
2. Has a total supply of 100 billion and is a deflationary asset
3. Can be spent/broken down to a millionth of a coin. Think 1/1,000,000 as the minimum possible spent, with 100,000,000,000 as the max cap.
4. Previous ATH (all-time high) hit the price it did off speculation alone. Ripple as a company did not have the traction they do now when the price jumped to $3.84
For Consideration:
Spoiler (Click to View)
Things to Ask Yourself:
- What advantages do big parties have using XRP on top of other services that are included within RippleNet?
- What use-cases currently exist with XRP
- What is the total market size of these use-cases?
- What blockchain consortiums is Ripple/XRP a part of?
- What have government officials publically/officially said about both Ripple & XRP?
- Could there be artificial price suppression to pass the HOWEY test?
- Does this coin interest me in a long-term or short/medium term sense? (I assume you're interested if you've made it this far).
- Banks are understandably avoiding XRP until reglatory clarity. But if financial institutions are using Ripple & XRP (which have more strict regulations than banks), what would this mean if XRP is deemed a commodity by the SEC and is regulated?
- Why are there a handful of venture capital companies backing Ripple? Why is Ripple a $10+ billion dollar evaluated company? (inb4 but rIpPle and xRp aRe dIfFeRenT)
- What services does Ripple as a company offer to banks and financial institutions?
- How many universities, banks, and financial institutions use Ripple or XRP?
- How many CENTRAL BANKS are working with Ripple?
- What efficiency benefits are there for these said companies to use XRP (which is within RippleNet instead of xRapid and their other services).
- Who/What is the IMF and why are they fond of Ripple?
- (maybe the biggest thing to research) -> what is XRP's use case(s)?
- Look into the "liquidity crisis" within the global financial system?
- How does Ripple give SWIFT a run for their money?
