Genuine question. I have read in this group several

Question

Genuine question. I have read in this group several

times that “market cap is not a factor” when considering what the eventual price of XRP could get to. I have also read many articles explaining why the price needs to be high in order to provide the total funds necessary for XRP to be able to handle the volume of transactions happening every day.
If it is necessary for XRP to have a value of $500 or $1000 or even more in order to deal with the volume how is this possible given the MC it would require? Would tokens “mid transaction” be considered “temporarily locked” or something? Or would the MC actually just BE in the multiple trillions and people just need to “get their head around it” like the MC of “currency” would be if ever it was discussed?
I’d love to hear an answer from someone who could explain this please.

#cryptocurrency #english #xrp

0

14.05.2023

9 ответов

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Gyro Zepelli

GreenGecko 🌿 ∞/21M
MC is a *result* of price and token count in circu...

So if theres a lot of buying selling and transfering of xrp, the market cap could increase dramatically

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14.05.2023

GreenGecko 🌿 ∞/21M

Gyro Zepelli
So if theres a lot of buying selling and transferi...

that doesn't have anything to do with each other. Both of us could 'buy and sell' USD notes at high frequency between each other all day, that wouldn't increase USD 'market cap' a bit lol

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14.05.2023

Matt 🇦🇺 Автор вопроса

GreenGecko 🌿 ∞/21M
that doesn't have anything to do with each other. ...

Thanks@ . I understand how MC works. My point is that there are 50B in circulation. I can get $1 @ MC = $50B. I can even get $10 @ MC = $500B. I have read plenty of articles saying XRP “needs to be” more like $500 in order to have enough XRP around to fund the SWIFT equivalent transactions which happen each day. A $500 price would generate an MC of $25T which is roughly 25x the total crypto market now. I understand crypto market could go up enormously once there is a lot more institutional investment T the the total share market is hundreds of trillions. There seems a “tug of war” issue. On one side the total SWIFT transactions is about $5T per day so there needs to be enough “value” of XRP to deal with that (given most XRP will not actually be included in these transactions as it will be in holder wallets). Oh the flip side the MC required to get to this level of XRP would be multiple times the total crypto value today.

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14.05.2023

GreenGecko 🌿 ∞/21M

Matt 🇦🇺
Thanks@ . I understand how MC works. My point is...

personally, I'd need to see that. It's a nice theory, but there are way too many variables involved to be able to estimate a likely outcome. I just wrote a text wall about it but removed it again lol, everyone can do DYOR and I don't want to sound too skeptical (which I'm not necessarily, it's simply hard to tell future developments). I'm sure we'll all be wiser in 10 years, but my personal taste in healthy financial exposure to a dream is satisfied with the bags I currently have 😇

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14.05.2023

Oblivion Sh

Matt 🇦🇺
Thanks@ . I understand how MC works. My point is...

Hi Matt. There is a catch. The transfers with XRP are quick, we are talking about seconds. You dont need to cover 5T a day, as colateral is quickly released.

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14.05.2023

Chris

GreenGecko 🌿 ∞/21M
personally, I'd need to see that. It's a nice theo...

They say that the real joy of life lies in giving. What you give stays with you through eternity. Maby you would find joy and fulfillment in sharing a bit of that bag... Like... With some members of this group

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14.05.2023

Norse Norse

Chris
They say that the real joy of life lies in giving....

Is that a joke 😂

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14.05.2023

Chris

Norse Norse
Is that a joke 😂

Don't come 'n say it's cheap manipulation. That's profound sh*t right there

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14.05.2023

GreenGecko 🌿 ∞/21M · Accepted Answer

GreenGecko 🌿 ∞/21M

MC is a *result* of price and token count in circulation. There is no 'necessity' of any market cap for anything, it is a result of market demand (mostly speculation, much less so actual usage as far as we can tell).

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14.05.2023

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Genuine question. I have read in this group several

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