Can you explain further why you are staying in but recommending others to cash out?
GrantPeace
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@jorge964, Ripple is the most technologically advanced crypto-currency. It is the most efficient and safe cryptography that will be one of the few crypto-currencies to be legal as it is compatible for market makers such as the central banks. I feel that this will be worth around 1$ by the end of the year and much more in the years to come. 15c was the lowest entry you could achieve without buying last year so for those who purchased yesterday, this position is extremely safe to hold. However, for anyone day trading who want to utilise the money that went into this day trade (30%+) more efficiently, more day-trade set-ups may create a larger ROI for the money that would be sitting in this trade for the next year.
jorge964
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@GrantPeace, Thank you, very good explanation. The trouble I have with Ripple is that there is no limited supply, it is deflationary by design and is not decentralised. So although it is backed by banks and as you say "market makers such as the central banks" wouldn't it be kind of a FIAT currency but on a blockchain? If that is the case may be we can speculate with it in the short medium/term but I don't see it as a long term investment because the value of each unit can be decreased at will. Or am I missing something?
GrantPeace
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@jorge964, It does sound like a FIAT currency on a BC, but it is not valued by any legal benchmark such as a government bond. It simply provides an opportunity for central banks to own enough Ripple to regulate the price, essentially this acts the same as a monetary policy such an interest rate which means there is an interest rate on the movement of money. This is beneficial in regulating economic overheating or recession.
GrantPeace
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@GrantPeace, The biggest issue is that it is a globally traded currency as of right now.
GrantPeace
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@GrantPeace, This can be seen as an problem, or an opportunity for those buying right now as banks will be competing to own the largest market share.
jorge964
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@GrantPeace, monetary policy to regulate overheating or recession is very kensian and we can see every day how it doesn't work and most probably it is going to crash FIATs very soon ;)
In any case I have read further about Ripple and I was wrong in that it is inflationary, on the contrary, it is limited in supply (although big at 100B) and with every transaction 0.001 XRP is destroyed. Too much XRP not released yet, but it is with an scrow to be released at a specific rate every year so not to crash the price. A high price is interesting as it provides liquidity to the market, so big transactions do not affect too much the stability of the price which is what banks need to reduce the risk on moving money internationally. Thus Riple should have an stable price to reduce exchange rate risk but higher than now. Another misconception is that nodes are only run by banks and that is not true. Anyone can setup a node even a validator node (ripple.com/build/rippled-setup/ although there is not economic incentive on running it apart from securing the network if you are using it. I'm now feeling better about XRP ;)