$10,000 Ripple XRP End Game - YouTube

You might know XRP as one of the fastest and most scalable

cryptocurrencies in the world today. "A

whopping 76 billion dollars in payments are sent through a vast network of banks every day

Ripple is a tech company in San Francisco that wants to help banks move that cash from point A to point B faster and more

cheaply. Ripple wants to do that by utilizing a digital token called the XRP.

But did you also know that it was designed to operate at ten 10,000 dollars per coin?

"So is Ripple the next big breakout coin?" "What Ripple really is going after is the SWIFT network or international payments transfer?

So what you're talking about here is an upgrade of the international financial system

And that's a very big market." The obvious question you might be asking now is can it go that high?

Let's find out!

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When XRP was created it was designed to be a replacement for both

institutional and retail financial systems in every market around the world

How do we know this? If we take a closer

look at how XRP is constructed it becomes obvious. A famous quote from Ripple Labs co-founder Arthur Britto

provides us with an interest in clue. In

2017 he wrote "XRP must be scalable to accommodate

7.5 billion people" this quote provides insight into the scale of Ripples ambitions to be used by the global population

First let's examine some of the main features of XRP that support the claim that it was designed to carry

10,000 dollars of value per coin. XRP's primary use case is to enable

cross-border payments that are faster cheaper and more reliable than existent systems such as SWIFT

"Ripple CEO Brad Garlinghouse joins us right now. Some say a ripple could be the next Bitcoin.

What do you think Brad? Is that a compliment that Ripple could be the next Bitcoin?

well

I think if we're solving a real problem and it's at scale than I think it's a compliment

Some I think may look back on Bitcoin and find that it was the Napster of digital assets what I mean by that is

Napster was the first to digitize music and demonstrate

Hey if you digitize music you can do a lot of cool things with that, but ultimately they were circumventing trademark laws

They're circumventing royalty payments and government stepped in and Napster was not successful but Spotify iTunes

Pandora they were very successful

I think what you'll find is that maybe the next generation of digital assets

Ends up solving some of the original problems that bitcoins set out to solve. So ripple net is trying to take on SWIFT

What's been the traction light who's coming board?

well

It's interesting as you step back and look at this if you and I decided we're going to send

10,000 dollars to California today the fastest way is for us to do it would be drive to the airport and fly it there

That's a crazy thing to think about when you're in the age of the internet and yeah

We're used to information on demand when we think about the customers that have come on board. It's because we're solving that real problem

We're changing the nature of a payment taking days to settle to California to seconds

so we now have well over a hundred customers ranging for some of the biggest banks in the world to payment providers to

the Western Unions, Money Gram Lindland pay out of China back to your questions is

XRP the next Bitcoin? If we work with the system

To solve this problem and we can solve that problem at scale a problem measured in the trillions of dollars

There's a lot of opportunity to create value in XRP."

Essentially XRP is trying to provide a reliable on-demand source of liquidity for cross-border payments

Now let's define

"liquidity". Liquidity

describes the degree to which an asset or security can be quickly bought or sold in the market without

affecting the assets price what we see in today's market is price volatility as a

relatively small number of investors buy and sell XRP on exchanges

Liquidity for XRP or any other crypto comes as the price rises, higher prices equals higher liquidity

The fact that Ripple Labs locked up

55% of the total XRP in timed release escrow accounts and has been disciplined in relocking the unsold

portions of each release will help to eventually drive the price higher. Even though

Institutional partners are likely buying XRP over-the-counter from these releases

this is not reflected in the published exchange prices. During the last six months XRP's price has ranged from

0.25 cents all the way up to 0.60 cents, which represents a

120 percent range either side even though this seems like massive movement

It is not problematic for institutional use because of XRP's fast

three-second settlement times. "Big part of the of the value proposition of Ripple I think is the cryptocurrency the XRP and

there we do find that the banks are also they are hesitant to to convert things into a cryptocurrency right now because of the

Volatility in the currencies because of the fact that you don't have the deep liquidity that you have in for example

The dollar. I hear people talk about volatility and I feel like they're propagating this misinformation that the volatility risk of Fiats

It you know volatility is just a mathematical calculation of time times volatility

If you hold fiat for let's say an average SWIFT transaction today's in the order of magnitude two days

that's about a hundred and eighty thousand seconds an

XRP transaction is three seconds. So if you take a low volatile asset times a long-duration

Fiat or a high volatility asset versus a very very short amount of time. It turns out mathematically

There's less volatility risk in an XRP transaction that there is in a Fiat transaction

The difference is you have market makers when you do a SWIFT transaction

There's banks saying as a market maker saying I'll lock in that rate

I'll take the volatility risk for the next two or three days with XRP

You don't have to do that because it's settled so quickly

What is problematic however is that this price movement was driven by relatively small retail

Investments to move value on the scale of Swift's five trillion dollar of daily

transactions requires much more liquidity than is available in today's

XRP pool if 45 billion XRP are available. This would require a price of

approximately 111 dollars per XRP

We know that some of the excerpts supply has been burned or lost by a lost private keys and a much larger percentage

Is probably locked up as long-term investors hold XRP

Thus an even smaller supply of XRP requires an even higher price to provide the minimum

liquidity to accommodate Swift

international payments retail payments credit cards and

Institutional and retirement investments such as Grayscale and Morgan Creek capital will drive demand for liquidity

this increase in liquidity will also raise the price which provides the liquidity which creates a

circle in which demand increases price which increases liquidity which increases demand

Once the cycle gains momentum, it's almost impossible to stop it. It has so much energy

So how high can this go? As of October

2017 it was calculated that the value of the world's asset classes total one point one four quadrillion dollars

With above-ground gold at seven point seven trillion global stock markets at 73 trillion global money supply

ninety point four trillion global debt

215 trillion global real estate

217 trillion and derivative markets at five hundred and forty four trillion if the entire one point one four

Quadrillion dollar value of all asset classes was tokenized by a XRP that would require at least

eleven thousand four hundred dollars per coin this example clearly

Demonstrates the scale of liquidity that XRP is designed to handle

customers that want to take advantage of using a digital asset like XRP for liquidity what that means is instead of

Pre-funding literally the trillions of dollars that banks have with other banks around the world. They pre fund that amount that sits there

It's really dormant cash sitting there with digital assets

You can make that much more real time to enable a payment across a border into another currency in real

How much money is pre-funded and how long does it typically sit there?

There's 27 trillion dollars sitting in these bank to bank accounts. They're called Nostro accounts Voster accounts. Yeah. Yeah

It really is a problem that if we can reduce the time the friction the cost

We really can't accelerate global commerce and by reducing that friction you accelerate that engine. It's good across the board

It's good for both companies in the United States. It's good for the unbanked communities across Africa

It really can fundamentally change the way the global financial

Infrastructure is wired divisible by six decimal places

meaning that the smallest unit is one millionth of

1 xrp. Think about this. Why would XRP's designers make the token so divisible in the first place?

At a value of 40 cents per coin

This is absurd after all who could possibly require the use of one millionth of 40 cents

You wouldn't do that unless you plan for the token to be much higher where it currently is

but a much higher token value say

$10,000 per XRP that divisibility makes sense for two reasons low transaction cost and

affordability for small retail use the minimum

Transaction cost required by the network for a standard transaction is 10 drops it sometimes

increases due to higher than usual loads even in a

10,000 dollar XRP value the transaction cost still would only be approximately 10 cents. This is still

Exceptionally cheap one cent is arguably the smallest denomination

That would be necessary to use XRP as a means of transacting everyday retail

Exchanges even in developing markets this could provide

affordable access to banking and digital financial

transactions for even

the unbanked

explain the unbanked the issue of the unbanked is such a fascinating thing that first-worlders don't really think about much I certainly

don't. but explain how that helps

well

if you think about it today that the

Banks want to serve customers as long as they can serve them profitably if they can't serve a customer properly

They're not going to do it

So when you talk about a migrant workforce

For example in Africa that has not obviously making a lot of money and is taking that money from country to country

The cost of using the banking system would actually exceed that the the income that they would have if we can reduce the friction

Globally and make it easier for that migrant worker to hold assets to move those assets without costing them lots of money

They then become part of the banking that the kind of global financial community

I think that you know

we think about an internet of value in ripples long term kind of 10-year vision is how do we enable an internet of value how

Do we enable value to move the way information moves today as you refer to email as an example?

It's really bringing those communities into the system and allowing them to participate and benefit from being a part of that financial system in its

2017 global findex database the World Bank found that about

1.7 billion adults remain unbanked without an account at a financial institution or through a mobile money provider

Approximately half of these unbanked people live in just seven countries

Bangladesh China India, Indonesia

Mexico Nigeria and Pakistan the report also noted that because two-thirds of this unbanked

Population have access to a mobile phone the door is opening to mobile banking

Services, as long as mobile access can be combined with well-developed payment systems

I can't resist asking you one thing Patrick. Can you tell us the story of how much you learn from the data?

and from the data points that are left by

Transactions that are happening as far as borrowers are concerned the woman in the market

The story here is we now have a platform and we were looking at this information or one of the key lending platforms

And we discovered that a lot of the transactions more than 40% of the transactions

Take place between 3 o clock and 5 o clock in the morning and we began to

explore this and also discover that about more than 50% of the people that were borrowing what women so there were problem here are

women insomniacs

you know in Kenya? and what we wanted to investigate this but in a upon

Further investigation we discovered what was going on, basically

You have traders that are operating in the various markets, right? They are purchasing in the markets and they are going to sell

in the street corners and in the kiosk

those sort of things so they wake up at 3 o'clock in the morning and

Boar off from this lending platform under a cellphone on your cell phone. They are still in their houses

It's all done on the cell phone they borrow and they'll get the money they'll then call

trusted wholesaler and ask for bags of this and the other and

Pay by their self through their cell phone

They'll then call the person who moves this thing and will then instruct them deliver at the kiosk

She will now wake the kids feed them send them to school and at 6:30

She is at the kiosk with all the products ready to sell and beginning a day

I haven't even left my bed at 6:30 as a governor and this woman has done all these transactions

These are people who don't have bank accounts

But they're still conducting business and they're doing it on their mobile phones in most of the developing world

You have a lot more people using mobile devices

Then you have bank accounts

If you can make the financial market available to them

Even if they don't have a bank account

You're now opening up a massive new market and if you make transactions affordable enough now

They're going to use that market

XRP will enable even the end bank to have access to digital financial tools that are fast stable and

The design decisions that went into creating

XRP structure leads us to believe that it was designed to operate at ten thousand dollars and to serve a truly global

Market ripple is looking at humanity scale usage, which is massive

think of what Google does for information

Ripple will do for value if you made it to the end of this video

Let me know in the comments if you're bullish or bearish on XRP in

2019 also, make sure you subscribe and like this video. Thanks for watching and I'll talk to you guys later