Ripple update: Will the price go up when FI’s/banks use Xrapid?
Ok I know when Xrapid will go live (yes it is already live, but the big switch everybody is talking about), it will help the surge of the price of XRP.
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My thoughts are that the price will go up everytime a bank or FI needs to buy XRP to do a transaction.
I just want to know if my thoughts are reasonable.
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So in this example i will use the orderboook from Kraken at this moment
#### Order Book (XRP/EUR)
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https://i.redd.it/rv6lx7dv6on11.png
OK, so we have a orderbook like the example above.
Brad with bank A, wants to sent money to Hodor with bank Z, for an amount that is equal for 33.919,07 XRP’s from the selling Orderbook. At the moment the selling price is € 0.47817 but only 499 XRP’s are available at this price. So to get to the total amount of XRP 33.919,07, Bank A needs to buy all the XRP’s within the range of € 0.47817 till € 0.47923.
In this case the price will go up from € 0.47817 to € 0.47923 if nobody else will buy XRP or more sell orders in this range will be set.
There are a couple of scenario’s.
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1. The highest price of buying order book is now € 0.47729 and won’t move untill bank Z wants to sell.
2. The highest price of buying order book is now € 0.47729 and will increase untill bank Z wants to sell.
3. The highest price of buying order book is now € 0.47729 and will decline untill bank Z wants to sell.
In my opinion it will be scenario 2, because it is likely the price of the Buyorders will increase when the price of the sellorders will go up.
Of course when bank B will sell the XRP’s it will be the other way around.
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But there are not only Banks or FI’s, but people like you and me that also buy and sell XRP ith the intention to buy low and sell higher. So the orderbook will have higher prices at the moment bank Z wants to sell. And therfore there is no need to sell all the XRP’s that where received from bank A, or bank Z will take a profit because the price is higher from selling it than receiving it.
Of course it is not possible that prices will only go up. But I think that the price will go up in 50% + of all the scenarios than down, because of non banks that want to make money with trading.
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What are your thoughts?
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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.
Author: Weydie
Score: 16
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