For Ripple, I can totally understand that the tech behind it is amazing and that the banks will adopt it. But why would the price of XRP go up. Wouldn’t banks want XRP is stay at 1 US dollar and never moves. I imagine that the users (banks) want no volatility whatsoever. With that said, the tech is great but as an investment it is questionable. This analogy is true for all the coins. Please enlighten me. Thanks
1 Like
Ripple is different because it’s more centralized than most other cryptos, but banks wouldn’t necessarily want it at 1$, even though I agree they would want less volatility. Even if all banks wanted it, the price is still mostly governed by market forces. As a long term investment ripple has been a great investment actually 
.
As for other cryptocurrencies, I fail to see why the analogy would hold. Some users would want less volatility, but some want this increase in value to continue, again what determines the price in USD is the market and how much people are willing to pay for the coin.
I don’t know if this relates to sustainability though, the life-spam of a project is a affected, but not determined by it’s price in dollars.
Durability, in digital form cryptos (the technology from which they are built - blockchain) are very solid and able to sustain themselves without human interference. Think of other things that have similar properties, gold, diamonds etc…
Value is then attached / derived because of such properties.
User cases (such as the ones mentioned for XRP) and Smart Contracts can add to the value.
Value (i.e. in USD) and Volatility will be determined by supply and demand.
isn’t it also true that banks own about 70 % of ripple (i once heard that somewhere)? So they would care less about the actual ripple price because they could regulate it. So volatility wouldn’t be an issue cause they could just launch big sell or buy orders. Or am I wrong?
I don’t know the exact quantities but yeah, most of ripple is controlled by financial institutions. As you said that means that they could control the price.
One important thing about ripple is that is meant to be this way, it was never meant to be a decentralized cryptocurrencies, it was created as a tool for banks and that’s what it is, invest in it at your own risk.
1 Like