A friend of mine, a fervent supporter of $XRP , has been telling me that for XRP to be widely used in global cross-border payments (such as projects involving the Federal Reserve and Ripple's corporate ambitions), the price of each XRP token needs to reach approximately $1,000 or higher.
His argument is that market capitalization is not important—liquidity is. At a price of $1 per XRP, he claims the system lacks the necessary liquidity to handle the volume of funds Ripple envisions; however, at a price of $1,000 or higher, it would be capable of doing so.
I’ve heard this argument many times, but I still don’t quite grasp it.
Could someone explain this in simple terms? Is there any merit to the idea that the price of an individual XRP token must be extremely high to facilitate large-scale settlements?
#XRP #Ripple #Crypto
His argument is that market capitalization is not important—liquidity is. At a price of $1 per XRP, he claims the system lacks the necessary liquidity to handle the volume of funds Ripple envisions; however, at a price of $1,000 or higher, it would be capable of doing so.
I’ve heard this argument many times, but I still don’t quite grasp it.
Could someone explain this in simple terms? Is there any merit to the idea that the price of an individual XRP token must be extremely high to facilitate large-scale settlements?
#XRP #Ripple #Crypto