5.0 Slow and Steady or Fast and Disruptive?

5.0 Slow and Steady

or Fast and DisruptiveSeptember 19, 2019

How will the price of XRP move to higher levels?

This is one of the questions I keep reading and what I am asking myself continuously. It's really a tough question to answer, because what is happening right now in front of our eyes, is unprecedented!! (Remember this)

Depending on which group you will ask within the #XRPcommunity, you will get different answers. I've mentioned that I've grouped the community into 3 groups:

The Techies
The Riddlers
The Conspirators

Please don't be offended with the names I'm using for these 3 groups :–)

Starting of with The Techies.

Their view towars adoption, is that it will be slow and steady. Growing the ecosystem takes time and is a delegate process. The payment rails needs to be put, market makers should be there, nobody is willing to pay for the slippage, in short

“its a long run and we just barely started”.

The Beta in me, says this could be correct.

While The Riddlers .......

are seeing a disruptive price increases of $10, $50, $100 a day, flying over the $589 EOY 2018 prediction of BG123. The switch will be flipped, volumes will increase, financial and retail investors will FOMO massively, which brings extra liquidity, thus extra use-cases, thus more room for bigger transactions, the Sky is Not the Limit.... we will go to Infinity and Beyond, forget about the Moon!

This puts a smile on my face :–)

As I love to dream.....

To summarise: 👁💥🚀

The last of the three, The Conspirators .....

would tell you that overnight the system as we know it would be replaced, XRP hits $10.000 instantly, all Global sovereign Debt's will be erased and a NWO will arise from the ashes like a Phoenix. The world powers as we know it, is gone and replaced.

This definitely also puts a smile on my face.......

(For both reasons :-p – the insanity of the idea and the impact of what it would mean for my XRP bag)

Summarising this would be like: 💥💥💥🚀🤯😱🥳🤪🤨😱🤬💋🚀

So, I am a mixture of all the above, it isn't easy and there is no one clear way of how it will play out.

The one thing that is obvious and has the MOST impact for the XRP'utility to kick-in and drive the price up, is regulations!

Nothing will move until regulation has been set, agreed and approved upon! With this I mean,

How DA's will be treated (security, asset, commodity or something new).
Taxes, DA's are not limited to borders and are a global phenomenon. Therefore it is important that “every” country agrees on key points of “How To Tax What and Where”. This has been discussed by the G20 / B20 and an agreement hasn't been confirmed publicly as to my knowledge (only the draft was okayed) I even want to say that during the UN assembly next week an important milestone can be set (you might want to look into SDG’s)

First some facts!

Lets try and make some sense and paint a clearer picture.

Which potential factual possibilities are there presently available for XRP to be used as intended:

RippleNet, the roll out of the RippleNet went relatively quick, because it isn't worlds apart of what the Banks know and are used too. The growth of RippleNet is mainly due to the adoption of xCurrent, which is a highly advanced version of the old Swift messaging board. It uses a bidirectional messaging instead of unidirectional and is only processes Fiat to Fiat transaction.
xCurrent 4.0 however, allows for XRP be used as easy as flipping a switch.
There are 200+ Banks who partnered with Ripple (I think it is way more, but you know – NDA’s)
More importantly there are payment providers like EqueensWorldline, Temenos and SAP which have 1000's of customers under their umbrella.
There are over 400 exchanges that has listed XRP, of which a 100+ are with fiat pairs in 39 different currencies!
The partnership between Ripple and MoneyGram gives exposure into 100 different countries.
There are investment funds for XRP (like at Grayscale).
Multi-hop, which allows banks that are not on the RippleNet, to use its benefits (which in theory could connect all the banks in the world to XRP indirectly).
ISO20022, allows for DA's to be transferred in its protocol and this ISO has been adopted as the standard.
R3’s Corda Settler
Swift GPI ( 🤭)

There are probably more facts that I've overlooked, but this will do for now.

I've stated that regulation is holding XRP back, for it to unleash its true power as a global bridge asset.

Now lets assume that this obstacle is removed and all things are cleared for XRP (Or DA's in general) and its potential users.

This would mean several things:

- Banks and financial institutions could save cost and time for transferring money.

- Instant liquidity will be available and Nostro and Vostro accounts will be absolute and these Nostro/Vostro funds will be available for use (Double Win).

The first who is up an running with XRP, will be able to offer lower fees to their customer base, which in return will bring in more customers, with more customers they would be able to offer even tighter fees, and repeat from the first step..... <—– You see what is happening here – FOMO on a different scale will kick in!

Of course it isn't easy for the Major Banks to switch from Swift (one of their chickens with the golden eggs) to Ripple, because of several reasons. I.e. They are acting as intermediary banks and are earning a lot of money with this existing construction, they are actually the ones who had set it up in the first place. The world reserve currency is the USD and replacing this overnight wouldn't happen also (probably).

In my opinion the initial utilisation of XRP will initially be done by small to mid size banks who will gain the most of using XRP and from small to mid-size countries/economies who are too

dependent on the USD. This is actually already happening on a very small scale.

Slow and steady or Fast and disruptive, that’s how I started. Where we are right now, before regulatory clarity, XRP is at the mercy of speculation and at the will of BTC (whales), so anything is possible. We have seen an ATH of $3,80 (within weeks) on pure speculation and with far less on-ramps into Crypto compared to today. A new bull run could happen without a warning and would push XRP IMO to $10 and higher without breaking a sweat. We know this speculative nature of crypto, actually this is the only thing we know! Never in crypto history has a digital asset been utilized on a global scale, GLOBAL SCALE!

Quick Google search:

“How much money in USD is there in the world?”

- According to the CIA, the total amount is $80 trillion if you include “broad money.” The US dollar is the most popular currency in use worldwide.17 nov. 2017

https://www.businessinsider.com › h...

$80 Trilion, this is just a fraction of what XRP is set out to replace, let that sink in.

(But please don’t take that total amount and divide it by the total supply, to figure out what price XRP needs to have, please! That is not how it works / or XRP isn’t going to replace all the dollars only cross border transfers 😑)

I mean let it sink in how big the volume of value truly is on a global scale, only with this small example of showing you the total amount of USD bills, let alone other values which are going to be transported/bridged by XRP over the XRPL.

The first thing what we are waiting for is regular clearance of the most simplest way of using a digital asset, which is:

“Sending a digital asset from Bank Alice —> Bank Bob with instant settlement”.

Yes the most simplest procedure a digital asset could be used, it has nothing to do with Smart Contracts, exchanging Securities or Derivatives or any other use cases which will evolve from this creation of pure genius, what goes by the name of XRP – The greatest digital asset which was ever created!!

Time to wrap things up!

My conclusion

When there is regulatory clarity and XRP could/can be utilized, I would expect a regular growth of a few dollars per month accelerating faster and faster, as time passes by and more and more XRP is being utilized. Depending on how many institutions will gradually be ramping up their exposure to XRP.

IF!

We would combine regulatory clarity with a BullRun and some “Wall street” FOMO, all I can say is........

UNPRECEDENTED!!

Thank you for reading till the end :–)

Please show me your appreciation by voting up, liking it and a retweet :-p

Yours truly,

Sidi Charif.