Thread by @XRP_Anderson

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When #xrp starts being used as a bridge asset as a standard it will be the perfect investment for any savvy investor. Why?

Consider first an investment into stocks. Stocks have over the last hundred years proven to be a great investment, averaging something like

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a 7% yearly return on average adjusted for inflation. But stocks are volatile and companies often fail. They are a high risk investment. Many unforseen events can bring down the business.

Now, consider XRP. Imagine an ecosystem for XRP is being developed.

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This may take some time. At this moment payment providers are using xRapid but banks are not really live yet. Regulations are not clear.

It is thus still risky. Imagine in the future, all regulations are passed and XRP enjoys a good traffic from banks.

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Now, the risk of failure should be low. If XRP becomes the preferred asset for cross border payments I see them holding that position.

How would the upside look like? Because of the very large savings from banks, more and more banks would likely transact in XRP.

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This adoption process could be rather quick, since the cost savings are very large and the more liquid XRP becomes, the more the banks would save.

The spread could ultimately become really tight. Now, the volatility would become low because of the payment flows

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through XRP between fiat. Then more and more banks would be likely to hold XRP in order to just pay the spread in sending to the other currency.

This would lead to a lower circulating supply of XRP that would make the price of XRP go up.

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What else? If XRP captures the FX market I would see other assets being traded against XRP, like gold and silver. Even more volume.

Derivatives with Codius with quick settlement through XRP.

The huge future micro-payments market.

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In other words, there would most likely be a vast expansion of the XRP ecosystem, while enjoying a LOW RISK from this point. This would be a unique investment in other words.

By conventional wisdom when it comes to investing, higher return carries higher risk.

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Bonds are safer than stocks but have a lower return.

If XRP became the standard cross border settlement asset I would see an expansion of the XRP ecosystem as natural.

I personally think there is a reason that xPring was launched not long ago. I believe that

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Ripple foresaw this expansion of the XRP ecosystem with cross border payments in the middle of it, ensuring its success from capturing huge amounts of liquidity from being a bridge asset.

Don’t forget that a huge reduction in friction for cross border payments

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would likely lead to a steady increase in volume for cross border payments. This is also a factor that could be substantial, over a long time period.

As far as risk, since XRP would be traded between fiat pairs globally, this would lower the risk, since

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it wouldn’t be dependent on any specific country or region of the world. Not only fiat but the more it is traded in other assets, the lower the risk would be. It would act as a hugely diversified fund almost, a global fund, containing all fiat and

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a ton of other assets. The risk would decrease the more the ecosystem grows. XRP could thus become a super riskfree asset, since it wouldn’t depend on any government of the world or any company, or any bank.

To conclude: Holding XRP after it becomes a global

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settlement asset could present investors with a unique opportunity to hold an asset with very low risk but a high long term return.

It would thus act as the perfect store of value. The payment flows in XRP would grow so big that retail speculation

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would not be able to affect its price. But you would by a very high probability enjoy a large growth of the ecosystem.

How large? We could only dream. And this process could go on for decades.

#XRPthestandard