u/mtheory3

Incentive for institutions to hold large amounts of XRP besides gas fees and speculation?

Is there any incentive for institutions to hold large amounts of XRP besides gas fees? Suppose a company wants to do $10 billion in transactions a day via RLUSD, as things stand, they'd only need to hold a few XRP to cover the gas fees since 1 XRP is needed for every 100,000 unique transactions. Is there an incentive to hold mass amounts of XRP like in liquidity pools?

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u/mtheory3 — 3 days ago

Explain it like I'm 5: Why will XRP's price go up if RLUSD is preferred?

XRP is my largest holding so I genuinely want to believe in it, but I'm starting to believe that Ripple will be very successful while the investors in XRP may not be.

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I have yet to see a satisfying explanation for why we'd expect XRP to increase in price beyond people just buying it because they hear about the amazing things Ripple is doing on the news.

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Here are the headwinds I see:

- The gas fees are so low that even massive volume on the chain would burn very little. It would take literally 100,000 transactions to burn 1 XRP, so companies wouldn't need to hold more than a few XRP at a time.

- Even if Ripple is relocking most of the unlocked tokens, much more are being sold on the market than are burned via gas

- Ripple doesn't seem interested in buying back XRP to make it's price go up in the future

- RLUSD is what any company would choose to use because the prices don't fluctuate like XRP. No company wants to gamble transactions settling at a slightly different price.

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Please explain to me why I'm wrong and why we'll see XRP go up to say $5-$10 by 2030. I feel like I'm missing a huge part of what makes XRP valuable to hold on to

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u/mtheory3 — 23 days ago