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XRP Endgame Theory:
1/ In the following tweet thread I present my thesis for why I believe the XRP Ledger, and by extension, the XRP digital asset will be the dominant bridge currency in the world. I stand by this thesis until new information/technology presents itself.
1/ In the following tweet thread I present my thesis for why I believe the XRP Ledger, and by extension, the XRP digital asset will be the dominant bridge currency in the world. I stand by this thesis until new information/technology presents itself.
2/ First, what I DON'T think will happen with XRP. The Federal Reserve will not use it, IMF will not use it, World Bank will not use it, average consumer most likely will not use it (directly) or hold it in any great quantity. No central bank will use it, nor should they.
3/ I don't think Ripple's grand plan is to incentivize any of the above institutions to hold it in any great quantity, even with regulatory certainty. This is despite the hyperbolic / speculative claims made by the vast majority of YouTube. I think the Endgame is even bigger.
4/ The most brilliant conceptual leap made by Ripple, R3, IBM, etc. is the concept of interoperability. This concept lends itself to establishing a Layer 1 protocol for value transfer in the same manner TCP/IP is a Layer 1 information protocol. This is the core of my thesis.
5/ Ripple is working as a software enterprise consultant to the largest financial institutions in the world knowing full well they can't accept counter-party risk, nor can they king-make. The Fed can't be seen to favor one technology, nor the IMF, nor the BOJ, nor BOA/Santander.
6/ Ripple knows that if THEY all agree to interoperate using the Interledger Protocol, they will create the bridges necessary for a "level playing field". At present, the XRPL consensus methodology for resolving/storing/escrowing value fast and securely is unparalleled.
7/ The Internet of Value is the Endgame. Customized distributed ledger technology (market/product fit) is used ubiquitously to represent the liquidity of all human assets, both real and virtual. The transactions per second this entails cannot be accommodated by any single ledger.
8/ All central banks will digitize fiat (CBDC's), all banks will have coins to represent their internal assets (JPMCoin), all public P2P chains will have their consensus values (BTC, ETH, etc.), all assets/securities will be tokenized (real estate, stocks, bonds, derivatives).
9/ How will value travel from these "walled gardens", ecosystem to ecosystem? Will there be one currency to rule them all (BTC?) Absolutely not. Only human value will rule and all human value will be tokenized / digitized. The "bridges" will be the connectors in the IoV/ILP.
10/ The value transfer between ledgers will be facilitated in large part by atomic transactions by the XRPL and will be supra-national, supra-technical, and with zero counter-party risk. That is the Endgame, eliminating all counter-party risk in human value transfer with XRP.
