What's XRP's max?

What do you guys think the peak price of XRP will be?

Is it a good long-term investment?

I've read the owners want to maintain a low price and can dump at will? Along with 50billion+ coins being already out there, no chance for anything near BTC's current level?

"...we will engage in distribution strategies that we expect will result in a stable and strengthening XRP exchange rate against other currencies."

"...we expect our company to hold approximately 50 billion XRP by the end of 2021. This schedule is indicative and discretionary."

Sorry, I am for sure a cryptonoob, just trying to figure this one out.

 

No one can answer this lol. Read Sythe's thread. He believes in XRP

 

Of course, I'm guessing no-one can see into the future, so I am simply asking for opinions.

 

Its currently at its max and will go down to the lower digits (1c - 15c) gradually now.

 

I've read a lot of mixed opinions on XRP. I am hoping for some gains in 2017 and 2018

 

Yeah im just a bit cautious because Ripple Labs even say themselves don't use XRP as a speculative investment (https://ripple.com/build/gateway-guide)

 

I am pretty sure @Buyacc is right that XRP started at a max and is slowly "destroyed". I would visit Sythe's XRP thread though

 

Yeah right, so even if the coin becomes successful in terms of usage, it doesn't mean that it's going to significantly rise in price? Due to the sheer supply ripple own and will want to maintain low volatility, which means keeping the price as it is now, right?

 

You have to remember that basically XRP will be used as a bridging currency. It will also be bridging very large transactions (billions of dollars worth). Imagine a bridging currency worth 1c bridging a $1 billion transaction. You would need 100 billion units of that bridging currency. Not very efficient. What if it's worth $1. Well now you need 1 billion units. You can decide what may or may not be a fair price from that (just a very crude analysis) - have a look around the volume of money that gets moved around in the world for an idea of the market Ripple is targetting.

I would point out though, that from the above, you can see that the actual price of XRP is relevant from a utility perspective (ie whether the token can be useful as a bridging currency), but otherwise, the price is actually irrelevant, what is more relevant is the liquidity and volatility of the token, which is still a work in process (low liquidity means higher spreads and slippage), and will eventually be hedged with derivatives (similar to FX).

Also, I've heard this the owners will dump XRP argument before. Please understand that XRP is owned by a company. XRP is a Long Term Asset on that company's balance sheet. If the company acts in a detrimental manner, the value of XRP will decrease, hence, the Net Assets of the company will decrease. So ask yourself, what is in the company's self-interest? To see its net assets increase, or decrease?

In terms of my prediction of a 'peak price'. Hard to really speculate, but what I can say is that 20c for a token that is supposed to bridge large transactions does not seem enough (though that valuation is based on Ripple actually succeeding its goal with respect to XRP, which is a separate issue).

If you really want to learn more about cryptocurrency, I also urge you to learn more about basic finance history and behavioural finance; the Tulip Bubble, South Sea Bubble, Electronics Bubble, Internet Bubble, etc. The last one is very relevant, because empirical evidence shows that a company name associated with .com earned a price premium - ie, its share price increased on the basis of its name alone! (pretty similar to blockchain hysteria at the moment) - See A Rose.com by Any Other Name You'll probably see that this bubble plays out exactly the same as the last two. Also note that electronics and the internet are part of the fabric of our society. No doubt Distributed Ledger Technology will form part of that fabric too - that does not preclude the existence of a bubble.

Going back to XRP, keep your ears posted for the Escrow which they will put the majority of their XRP into (they stated very confidently that it would happen before 2017 ends and have repeatedly stated that they are on track to meet that deadline) - Ripple to Place 55 Billion XRP in Escrow to Ensure Certainty of Total XRP Supply | Ripple.

 

@malakadang you are bang on about comparing this to the 90's tech bubble. Back then we saw a valid technology movement, where businesses were moving online. However, back in the late 90's, the internet was just not ready to support this shift. They were about 10 years early, PC's and even business infrastructure back in the late 90's did not have the capabilities to support e-commerce.

However, even though the movement happened ahead of its time, the real losses were from people just piggybacking and trying to turn anything into an internet business. It was basically, take item X and sell it online. Pets.com, Diapers.com, Radio on the internet... There was nothing innovative to all of this. It's similar to thinking we need a separate blockchain and crypto currency for every single use-case of blockchain technology.

Ultimately, through the bubbles, the shit will get burnt off and the truly valuable cryptos will live on. Look at the bubble from 2013. Most of the alt coins from that bubble are nowhere today. Namecoin, Peercoin, Novacoin, Feathercoin, etc. Those were top 10 market cap coins back in 2013, today they're mostly obsolete. The only two coins that really remain strong from those days are BTC and LTC, and perhaps you could include Ripple although it wasn't really trading back then.

So when this bubble comes crashing to the ground, many of these alt coins will be absolutely demolished. The market will be cruel. Only the best and most useful coins will live through the bear market. So do yourself and favor and hold BTC, ETH, LTC as the majority of your portfolio. Keep the alts to a minimum.

 

People will be dumb enough to buy into LTC as a scaling solution even after BTC and ETH have been capped out in transactions.