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12 Jan, 19 tweets, 12 min read
1/17 Is XRP a store of value asset?

Bitcoin is often called Gold 2.0 because, it's said, Bitcoin is a great store of value asset. But what does that mean, and is XRP also a store of value asset?

(Video version @ )

A thread. πŸ‘‡
2/17 First, what makes an asset a good store of value (SOV)? A good SOV has 4 properties: [1] valued by a lot of people, [2] maintains/increases value over time (doesn't depreciate), [3] scarce, [4] persistent (will last a long time) and (optional) [5] deflationary.
3/17 Gold has historically been considered the best SOV asset: [1] Highly prized worldwide for thousands of years, [2] historically maintains/increases in value, [3] only ~1.5% more produced annually despite improved mining tech/methods, [4] it's virtually indestructible.
4/17 Another, less globally valued example: baseball cards. [1] Valued by a large group of people, [2] value increases over time, [3] scarce (more could be printed, holders believe they won't be), [4] longevity (oldest baseball card known is from 1860).
5/17 Baseball cards have 2 differences from gold: gold has at least some utility (jewelry/electronics). Baseball cards have no utility, only sentimental/collectible value. Also, baseball cards are deflationary. They can be lost/destroyed, increasing the value of remaining cards.
6/17 Other store of value assets are art, beachfront property, jewelry and other precious metals, etc. Bottom line: anything that enough people THINK is a good store of value BECOMES a good store of value because people think it is.
7/17 Is Bitcoin a store of value asset? Yes. [1] Valued by a large number of people, [2] maintains or increases in value (even though volatile, avg 2x per year), [3] scarce (21 million max), [4] longevity (11 years and running), also [5] deflationary (some lost/not replaced).
8/17 You could argue that 11 years isn't long enough to qualify as "longevity", and that's a fair argument, though believers will point to the Lindy Effect and say even if it doesn't yet qualify, it doesn't need much longer in order to.
9/17 However, just because something is a SOV today doesn't mean it will be tomorrow. Take trade beads. These glass beads used to be used as currency until Europeans figured it out and started manufacturing huge qtys of beads to buy African commodities.
10/17 This glut of supply inflated the value away from the beads, crashing the market and forcing a change to new forms of currency. In the case of the glass beads, they were thought to be scarce but it turned out they really weren't, so they lost their value.
11/17 Anything can lose its store of value status. If Bitcoin does become Gold 2.0, the price of gold could depreciate as people prefer the improved transferability and custodying of Bitcoin over the hard to transport, expensive/difficult to protect gold.
12/17 Utility helps maintain an SOV's status. W/o utility, even if it meets all 4 requirements of a store of value and the optional 5th of being deflationary, that status is at the mercy of sentimental whims. People stop caring about baseball cards, they lose their value.
13/17 Currently Bitcoin doesn't have much utility. It's too slow for payments. It requires massive amounts of power to maintain (miners/proof of work). It's possible it will last a very long time (baseball cards have lasted 160+ years), but that is a strike against it.
14/17 So is XRP a store of value asset? Yes! [1] Valued by a large number of people (wallets growing daily), [2] maintains its value over time (see chart), [3] scarce (100 billion cap), [4] Longevity, almost as old as Bitcoin (Lindy Effect), [5] deflationary (fees burned).
15/17 I think we can all agree we'd like XRP to increase in value more than it has! But remember, *store* of value requires *maintaining* value or better, and XRP has done that. I believe it will blow our socks off this bull run and in years to come, but time will tell.
16/17 Also, XRP has something Bitcoin doesn't: utility as a bridge currency, in stablecoins and Central Bank Digital Currencies (CBDCs), etc. That certainly helps its case, because in time its value won't be based purely on speculation or sentiment, but on real use-cases.
17/17 SUMMARY: In order to be a SOV, an asset must be prized by a large number of people, maintain or increase in value over time, be scarce and long-lasting and (optionally) deflationary. XRP currently meets all 5 requirements, so it absolutely qualifies.

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More from @xrpartisan

12 Jan
1/19 Lawyer Jeremy Hogan (Legal Briefs) discusses the SEC/Ripple lawsuit.

Detailed summary follows.

TL/DR: SEC isn't asking for XRP to be deemed a security, will likely settle, and the court has the power to stop Ripple from selling any more XRP.

2/19 On Jan 1, @JohnEDeaton1 filed a writ of mandamus against the SEC that was "extraordinarily well done". Writ is asking a superior court to tell a lower court to do something correctly, but is rarely granted. Petitioners also want court to order XRP "not a security".
3/19 While it's a difficult argument to make that XRP is a security, Hogan doesn't think the petition will be granted (watch the video for all the reasons why).
Read 21 tweets
12 Jan
1/15 πŸ‘€πŸ”₯πŸ’΅πŸ’΅πŸ’΅


NOTE: I am not a financial advisor, and this is not financial advice, just my own plan.

A thread. πŸ‘‡
2/15 I currently hold 5 cryptos, XRP and 4 other alt coins.

I sold the last of my Bitcoin at $40k to buy into more alts because I believe something big is coming soon.

That worked out well given the recent drop in Bitcoin.
3/15 The Bitcoin correction from $40k->$30k->$35k was not imo the one that will kick off alt season. Too small, too short.

2017 saw a 41% drop over 5 weeks. Unless BTC smashes down again tonight/tomorrow and keeps dropping, I expect another, larger correction in coming weeks.
Read 17 tweets
11 Jan
1/22 Why XRP will beat Bitcoin.

(Video version @ )

A thread. πŸ‘‡
2/22 Despite last night's major Bitcoin correction, it still sits at $33k, well above the last bull run's all time high. With XRP currently at $0.28, it may seem rather ridiculous to think XRP will ever become #1.
3/22 However, it's important to compare Bitcoin and XRP not in terms of price, but market cap. That's because there are 100 billion XRP (and will never be more) and 19 million circulating Bitcoin (21 million max). So comparing the price of individual tokens doesn't work.
Read 24 tweets
11 Jan
1/ I've created a YouTube channel with my XRP explainer tweets as videos for those who prefer audio/visual learning or to share with people who aren't on Twitter.

Please SUBSCRIBE and RT to help educate folks on the wonders of XRP!

Here are the videos I've created so far. πŸ‘‡
2/ Why I changed my mind about Bitcoin in favor of XRP.
3/ XRP's Consensus vs Proof of Work/Proof of Stake and why Flare is superior to Ethereum
Read 8 tweets
10 Jan
1/21 The pros and cons of cryptocurrencies with an immutable, decentralized, public blockchain, why banks aren't going away, and what that means for XRP.

A thread. πŸ‘‡
2/21 When I got into crypto, one of the first things I learned was that the blockchain is immutable. Once something is stored on it, it can't be changed. Once you decide to make a transaction, nobody can reverse your decision, not even the State. This gives you real power.
3/21 The blockchain is also public. Anyone with the right software can view every transaction on it. This keeps people honest and builds trust b/c everyone knows everyone else can audit the blockchain and ensure everything is on the up-and-up.
Read 24 tweets
9 Jan

How high will the price of XRP go? πŸ’₯πŸš€πŸŒ™

With the crypto bull run getting started, many XRP HODLers are dreaming of their future lambo potential. But just how high can the price of XRP get? Let's forecast.

A thread. πŸ‘‡
2/14 First, keep in mind I'm assuming all 100 billion XRP will be available for liquidity. They won't be. From investment holders to burned XRP fees or lost XRP from "boating accidents", 100% of the currency will never be available. So my price estimates are likely quite low.
3/14 1⃣Ripple wants to conquer (using XRP) the cross-border payments market. That's a $20 trillion/year ($55 billion/day) market. To provide that kind of daily liquidity, the price of XRP would have to be $0.55. dailyhodl.com/2019/10/08/bra…
Read 17 tweets

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