Monthly Archives: August 2018

Why I Am Putting My Money Behind Ripple and XRP

Over the last few months I’ve been doing an insane amount of research into the company Ripple, and their asset XRP. For those of you who have been watching the cryptocurrency market for a while, you might have heard of it, and you might have been misinformed.

Ripple is a software company that makes products to help aid banks and payment providers. XRP is an asset maintained (not created) by Ripple. There are 100 billion XRP in existence, and Ripple holds 55 billion of them. They are stored cryptographically in an escrow, and every month Ripple receives 1 billion, in which they can sell or put back into escrow.

Ripple’s goal is to create an “internet of value”. XRP is the asset they choose to use due to the fact that it can settle in 3 seconds, and can handle up to 1500 transactions per second. No other cryptocurrency can compete with XRP in terms of functionality. Their product that interests XRP speculators and holders the most is called xRapid. What xRapid does is utilize local exchanges and through the use of XRP, allows banks to transfer fiat to fiat across boarders in 3 minutes.

How does this work? Say Bank #1 in the United States wants to send USD to Bank #2 in Mexico, and receive it in Pesos. Traditionally, this is a complicated process that utilizes something called Nostro and Vostro accounts, which means both banks have to have accounts open with each other, and that ties up a lot of capital. It can take up to a week for payments to settle with the current SWIFT system. xRapid is a product created to eliminate this process. While utilizing xRapid, Bank #1 would send the payment to Bank #2 directly, in 3 minutes. Behind the scenes the USD would get send to an exchange that offers USD/XRP pairing, it would buy XRP, then instantly look for a MXN/XRP pairing. If that pairing is not available on the same exchange, the XRP would get sent to another exchange, (which only takes 3 seconds) sell the XRP for Pesos and then deliver them to Bank #2.

This is just one use XRP will have, and it is revolutionary. As the biggest holder of XRP, they have every interest to create a demand for XRP, and as they do this it gives them more money to keep investing in the ecosystem. Ripple created an incubator called Xpring, which will fund startups that will utilize XRP. They are working on a custody service, a smart contracts platform called Codius, and who knows what else.

If what they are working on isn’t enough, one of their co-founders and executive chairman Chris Larsen is on an advisory board in the IMF, and there are ties to the Federal Reserve amongst their employees. To me, the writing is written clearly on the wall that this is going to be a phenomena embraced by governments and banks globally.  I don’t know if you want to call it a “one world currency”, or whatever, but this is going to be huge in my opinion.

Recently, there has been a big drop in price and a lot of people are panicking and selling. I will not be one of those sellers, because I know it is way undervalued. I intend to remain patient, and let the confusion in the market clear. Once it does and we enter a phase where the price is based off utility rather than speculation, I believe the sky is the limit.  I view this as an opportunity to keep buying as much as I can. Temporary losses don’t bother me.

As you know, this is the Homesteading for Liberty blog and my main goal is to create a thriving, self-sufficient homestead. It may seem like I have strayed from my goal since I am putting a good chunk of my money into cryptocurrency, but that is simply not true. To me, this a once in a lifetime opportunity that will pay off in the long run. Once it does, I can focus entirely on my homestead, and never have to worry about finding a traditional job again. I would like my homesteading experience to be fun, and not a constant struggle. If this doesn’t pay off, I still very much intend to try my hand at homesteading anyway and am I willing to struggle, but I’d prefer to do it in a way that allows me to have room for error.

For now, I will keep working my job, on Liberty Archives, and on the bus so that maybe it can be habitable in a harsh winter. I’ll continue to keep posting bus videos and vlogging updates on occasion. We will be going back up to the land this October so I will try to make as many videos as I can, since this will really be our official start since we didn’t get to spend much time up there last year. I will continue to remind myself that nothing good comes without patience.