Thursday, March 08, 2018

Ripple Not Added To Coinbase, What Really Matters To XRP

I told you so.

Actually, it looks like I was a bit too conservative with my estimate for how low Ripple (XRP) would sink after, once again, the rumor that it's going to be listed on Coinbase turned out to be false. I thought it would return to its pre-rumor spike of .90 cents each, but it's currently at about .86 cents and I saw it get as low as .84 cents on

If you did what I would have done were XRP trading not a complete pain to do here in Washington state because of our abysmally stupid government in Olympia, then selling the rumor at $1.05 and buying back in on the actual news at or below .90 cents is probably treating you well right now.

The takeaway here is that these Coinbase/XRP rumors that keep popping up and popping the price are nothing more than a combination of wishful thinking and pump-and-dump manipulation, click bait to get you to watch monetized videos and whatnot, and a myopic viewpoint on what XRP is and where it is going. True, a listing on Coinbase would make it more accessible to the everyday crypto investing public, but the true source of XRP's future success is in its actual intended use case, which has nothing to do with a listing on Coinbase.

Here's the kind of news that should be moving the price of XRP dramatically:

Ripple Partners with Payment Provider Fleetcor to Foster XRP Use
"In another move that aims to facilitate the widespread adoption of cryptocurrencies, Fleetcor Technologies is partnering up with Ripple to foster the creation of an international payment system that will enable Ripple use for commercial purposes.

Fleetcor announced on March 1 that they have entered a pilot program which uses Ripple’s xRapid platform to bring together their international payments subsidiary Cambridge Global Payments and enterprise blockchain solution firm Ripple to process over $20 billion worth of [business-to-business] transactions." -- S. Jagati
That's a lot of cash moving through XRP, which goes from its point of origin to its destination almost instantly, even between different currencies. As I've written about before, this is compared to the existing money transfer networks that take days to settle transactions, are extremely expensive compared to this new technology, and which require huge pools of idle capital to be kept in order to create liquidity within the current system. So for the intended users of XRP, the value proposition is definitely there and adoption of the technology is growing. This will increase transaction volume through the network, which then brings up the other key driver of XRP's future value prospects: a tiny amount of XRP is destroyed every time a transaction occurs, over time reducing the amount of XRP that exists. The scarcity of XRP increases as it is used, a process that will accelerate as adoption grows.

So with a combination of massive savings of time and money, freeing up of trillions of dollars worth of capital (some of which would likely flow right into XRP), and a decreasing amount of XRP available, the only thing that Ripple really needs to be successful and put up huge gains is time. Getting listed on this exchange or that exchange just doesn't matter; Ripple's real use and usefulness exists elsewhere, and it is increasingly being put to work toward that end.

I'm not saying that a listing on Coinbase would not permanently boost the price of XRP. I don't doubt that it would. However, if your only interest in XRP is profiting from a quick spike in its asking price, then yes, such a thing would be a big deal. If all you know of XRP is that you might make some quick profits that way, you might want to get more familiar with what it really is, what it does, and what its future potential is, because you might otherwise miss really big gains over a longer time horizon...

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