Thread by @martincpvalk

1/12
My take on the #XRP price explained.

@Kevin_Cage_ @WorkingMoney589 @thebearablebull @BakkupBradley @MoonLamboio @XrpMr @jungleincxrp @HamEggsnSam @digitalassetbuy @LoveForCrypto17 I would love to get your opinion and feedback on this:

2/12
So many people are fixated on the price of #XRP and don't understand why it is not rising. I am going to try and explain what I believe to be true in a way that can be understood by people who know absolutely nothing about finance.

3/12
Visualise the economy as a massive car engine, and #XRP as the oil that lubricates the whole system. Taking away all the friction and making sure everything runs smoothly.

4/12
Now visualise the oil sump (The oil sump contains the engine oil required for lubrication when not in use) at the bottom of the engine. In this case, the sump is full of all the #XRP that is not being used.

5/12
Now let's link the price of #XRP to the level of the "oil" in the sump. The more that is moving around the engine, the less that is in the sump, and the higher the price. (simple supply and demand)

6/12
However! After use, the oil — or in this case #XRP — returns back to the sump. Which causes the price to drop back down again.

The strength of #XRP is its speed, but this is also the prices weakness. Because it is able to return to the sump before more is needed.

7/12
In order for the price to rise we need the engine to be continuously running. Not just more use-cases but actual in-flight #XRP.

8/12
#XRP unlocking all the #Nostro and #Vostro money is great, but that alone won't affect the price much as #XRP is so fast, and it's only needed during the actual transaction.

9/12
Once we get institutional money moving around the world we will see the engine revving up and the oil (#XRP) continuously being pumped around, causing the level in the sump to stay low.

10/12
As technology advances and continuous/streaming micropayments becomes the norm, the demand for oil (#XRP) will become even higher, driving the price up even more.

11/12
Side note: Your car engine uses up a little bit of oil as it is being used just like #XRP has its burn rate. The only difference is that you can top up your oil every now and then, and that there is a limited amount of #XRP.

12/12
This too will drive up the price, ever so slightly, but eventually.

I hope I have been able to explain my understanding of #XRP's price action a little, but I would really like to hear from all of you what your take is on this. Please give me feedback.

#xrpthestandard