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XRP · 205w

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In its simplest form: Ripple is the company. XRP is the currency: There are 100 Billion XRP in existence but only 38 billion in circulation. Ripple claim they will lock the rest of the XRP up in escrow accounts which are each locked for 1 month intervals apart. So how will the value of the XRP increase: As Ripple is adopted by more and more financial institutions there will be less ripple to go around. This is where the people in for the long haul will make their money. Lets say all the other XRP other than the ones in circulation now were in the hands of the financial institutions. So we call that 62 Billion in their hands, as financial transactions take place by more and more of these institutions the value of XRP must increase because even if the institutions hold billions of them each they will need them to carry out their many financial transactions. It now becomes easy to see why a coin/token worth only $0.25 would be no good. Imagine the many billions of dollars of transactions taking place everyday. If the price were to stay at $0.25 then it would take 4 million XRP to move $1 million. That simply would be a ridiculous situation as the many billions of transactions carried out everyday would soon exhaust the XRP supply (remember we are talking future) The only solution to this problem is for XRP to have a much higher value per coin so that Ripple can carry out the transactions without running out of the currency. Yes 100 billion coins is a lot of coins, but compared to the number and value of financial transactions carried out 100 billion pales into insignificance. A $1.00 XRP would still only be $100 Billion total. Yes that is a huge amount of money but it is nothing compared to the number of financial transactions carried out. And that is why the price will need to increase, so these institutions are able to carry out all their transactions. I think there needs to a distinction made between coin like BTC and XRP, the technologies are so differen...
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