Ripple update: About XRP future value.
Please help me figuring out some core concept about XRP value, and please correct me if I’m wrong.
I don’t want to be positive or negative about XRP future value, I just want to understand better.
1. **The Market**
I often read about Ripple addressing a $26 Trillion market, which is the amount of money stored in Nostro/Vostro accounts.
BUT, the value proposition of Ripple is to help institutions “releasing” money locked in Nostro/Vostro accounts by using xCurrent/xRapid and replacing the SWIFT system.
SO, the real market that Ripple is addressing is NOT the $26 Trillion stored in Nostro/Vostro account, but it’s the total amount of money exchanged on SWIFT, which is $5 Trillion per day (as reported by the US government here [https://www.fincen.gov/sites/default/files/shared/Appendix_D.pdf](https://www.fincen.gov/sites/default/files/shared/Appendix_D.pdf))
2. **The Value**
An XRP transaction takes 4 second to complete.
If you do the math, considering $5Trillion exchanged every day, it means that every 4 seconds $231Million are exchanged on SWIFT with an avg of 700 transactions (as reported on the SWIFT website that says 15million transaction happen every day: [https://www.swift.com/about-us/swift-fin-traffic-figures](https://www.swift.com/about-us/swift-fin-traffic-figures)).
It means that all the Banks and Institutions using SWIFT, have a need of $231M to be exchanged every 4 seconds.
There are 50Billion XRP in circulation today (100Billion in the future).
SO, in order to successfully replace the entire SWIFT system keeping all the involved parties satisfied, the price of a single XRP needs to be as little as $0,004 (231M divided by 50Billion).
If everything is correct, once (and if) Ripple will completely replace SWIFT, why should the XRP value be orders of magnitude more than $0,004?
Am I wrong?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
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