- Chad Steingraber predicts a scenario where XRP could become a reserve currency asset and banks create derivatives at XRP Ledger.
- This could propel the XRP adoption at a global level where driving the XRP price to a long-term target of $20,000.
Post the Ripple ruling earlier this month in mid-July, the native cryptocurrency XRP has been on investors’ radar after more than 50% gains over the last 15 days. World’s top crypto exchanges like Coinbase and others have relisted the XRP token thereby providing a massive boost for trading volumes and liquidity.
Investors and market analysts have started making wild predictions for the XRP price going ahead. Chad Steingraber, the Creative Director at Ghostpunch Games, has put forth a bold argument for the potential of XRP to reach an astonishing price point of $20,000.
Of course, this price target seems far-fetched and fantasized at this point in time when the XRP price is trading just a quarter to a Dollar. Also, these are just mere speculations and there’s no guarantee that these things will occur in the future.
If you haven’t read my theory from the future.. I think you should give it a thought. 😎 https://t.co/d7ysY5euXc
— Chad Steingraber (@ChadSteingraber) July 25, 2023
Steingraber outlines the three core principles that govern the valuation of an asset. Firstly, he emphasizes the timeless economic principle of “Supply and Demand.” Considering XRP’s limited supply of fewer than 100 billion coins, scarcity could exert significant upward pressure on prices if demand surges.
Secondly, drawing an analogy from the real estate realm, he explores the concept of “Market Appreciation.” As assets appreciate in value over time, the overall market value increases, even if the actual money injection remains constrained.
Lastly, he directs attention to the concept of “Limited Assets,” underscoring the value ascribed to assets like the Mona Lisa due to their uniqueness and societal significance.
Ripple XRP ODL Solution
Steingraber highlights XRP’s limited supply and deflationary mechanism due to burning small portions during transactions, influencing its price. XRP’s market cap stands at $37.7 billion, up from $18 billion. However, it doesn’t represent the actual investment, only the current value.
Furthermore, Steingraber also talked about Ripple’s On-Demand Liquidity (ODL) solution. Ripple’s ODL service targets small banks and money transmitters, not major institutions like Bank of America, Chase, or Wells Fargo, which require more privacy for their large transfers.
According to him, banks need privacy for their internal ledger transactions, and XRP was never meant for public retail trading. Instead, he envisions banks creating private XRP ledgers and issuing their derivatives, similar to central banks holding gold as a backing asset.
In this scenario, XRP could become a reserve currency asset, with banks creating their derivatives on the XRP Ledger. For example, Bank of America could issue “BOAcoin” on XRPL, using XRP as a reserve asset to back it up.
Internal transactions between banks and Institutional Grade Liquidity Providers (IGLPs) would depend on XRP to facilitate exchanges between these private coins. This private mass adoption of XRP would help achieve the $20,000 goal.
In this context, XRP’s value would be linked to its crucial role in enabling cross-border transfers for major financial institutions, making it an essential and highly sought-after asset. Large banking corporations and other financial players could leverage this asset for their operations.
- Invest in Ripple (XRP) and 70+ cryptocurrencies and 3,000 other assets.
- 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
- Copy top-performing traders in real time, automatically.
- Regulated by financial authorities including FAC and FINRA.
2.8 Million Users
Get Started
Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Credit: Source link
