Thank you very Much Aussi Digger for explaining this Crypto Currency known as XRP

Your commentary is literally “priceless” so I am posting it here as it was in a fast fading post below in response to a Question by Columbia

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Hi, old friends. As you know, I’m a gold-silver bug. Property and sound money is my go.

I immediately declared an interest. I got into crypto in 2021.

I have over
100K XRP
100K XLM
and X 10k in
XDC
Algo
and Iota.

I got into Crypto after watching my son, who was buying, selling, and trading on his own account. He seemed to be making good money. So why? It’s high risk, isn’t it?

First, there are lots of coins out there. A few are well known—Bitcoin. Some meet international standards, ISO 20022 coins, and some are extremely high-risk and could go to $1,000 tomorrow and $0 three weeks later, often described as meme coins. So first, sit down and sort them out, at least understand what category they fall into and the risk profiles, and know what you are doing. Buy the wrong thing and you can easily lose 100% – buy the right thing and you can retire>

So, with my son, I staked some $, and he invested half, and I invested half. I let him choose what he wanted to buy, and I chose what I wanted to. We started in 2021. I’ve yet to recover my purchase price on some of those early buys. But once things settled down, I started accumulating at lower prices, particularly XRP. Averaged down extremely well.

Now, I’m just going to discuss the ISO 20022 coins. There are about a dozen of them. All those above are ISO 20022 coins, which just means they conform to international standards.

Going forward I believe that XRP will be the king of Crypto. At the same time, XLM will be the Queen.

XRP is meant for international FX transfers.
XLM is meant to facilitate personal transfers between people.

A few years ago, I was at my place in Canada, woke up in the middle of the night, and suddenly understood how XRP worked.

It isn’t that complicated.

My best description is that it will become an international exchange coin or international exchange mechanism. It will change the foreign exchange market forever.

To explain how this works I need to step back just a moment and explain the existing banking landscape. Once you understand this, you start to realise what the future of XRP is. Just work through it with me.

So, think of yourself as an international banker. I have clients who want to buy and sell currencies every day.

So, on this day, I have Aussie Digger who wants to send $1,000,000 Canadian to his friend Columbia.

I also simultaneously have a handful of other clients in Canada who wish to sell $1m Canadian dollars and buy Australian dollars.

So as the banker [Commonwealth Bank of Australia, todays FX rates] im sitting there, and the spot rate on his screen is 0.911. For want of a better description, it is the middle rate.

Now I could sell Canadian $ to Aussie Digger at the spot rate of 0.911 and buy Canadian $ off my own clients at 0.911.

Aussie Digger gets his $1m Canadian for $1,097,694, and so do my Canadian clients, who just sold $1,000,000 Canadian and received $1,097,694 A$ in return.

I’ve swapped the money between each account with a click of a button, and it all happened in an instant.

But being the greedy banker, I’m not happy. I’m not skimming my cut!

So, my rate for Aussie Digger is 0.873. He will pay me $1,145,475 to get his $1,000,000 Canadian dollar.

Meanwhile, my rate to my Canadian clients is 0.952. They pay me $1,000,000 Canadian and I give them $1,050,420.16 AUD

So, as a banker, I made the following.

I made off Aussie Digger $1,145,475 – $1,097,694 = $47,781

Off my Canadian Clients I made $1,097,694 – 1,050,420 = $47,274

Total $47,781 + $47,274 = $95,055 thank you very much.

Now imagine this hundreds of thousands of times a day worldwide.
Do you realise how much money the banking system skims off the public daily?

Imagine that money staying in the public’s hands!

Then along comes XRP. It’s a game-changer.

Aussie Digger wants to send his good mate Columbia $1m in Canadian currency.

So XRP is, at this instant, $3.39 CAD per coin. I need to buy 294,985.25 coins.

Aussie digger buys 294,985.25 coins in Australia which are currently selling at $3.74 AUD per coin. Costs him $1,103,244. And immediately sells them in Canadia for $1,000,000.

The difference.

Banker cost $1,145,475 – XRP cost $1,103,244 = $42,231

So, Aussie Digger just saved himself $42,231 while the banker missed out on $47,274.

Can you see how massive a game-changer this is?

And with every transaction, there is a complete trace of the buyer and seller and how much. Opaque books!

Do you think the bankers might be against this? You bet.

That is why XRP has been tied up in court for the last 4-5 years.

Every day they delayed XRP from being accepted internationally was a day that they made billions.

So why is XRP skyrocketing?

With Trump’s election, he has already declared that there will be no tax on gains in Crypto.

Meanwhile the head of the SEC has been delaying XRP in court for years. It has caused massive uncertainty.

Since Trump’s win, Gary Gessler has already announced his resignation effective January 20th, 2025.

Meanwhile, the US court hearing on the matter confirmed that XRP is not a security. The case is effectively over and XRP now has legal certainty.

Lastly I want to mention something called the burn rate. With every transaction, a small part of every coin is “burnt’. It effectively holds the information of the buying and selling party an the transfer amount.

The burn rate of each coin is higher as a percentage at a low price than at a higher price. XRP was designed to operate at a very much higher rate. How high? Over $10,000 per coin.

Now, in Australia, I use Swyftx. I’m actually looking for an exchange in Canada so I can create an account.

XRP is meant for major companies to major companies. So imagine a company in Canada completely bypassing the banking system and sending the funds to an Australian company.

XLM is meant for people. My guess is that it is likely to be about 1/5 of XRP.

Hope this explains why XRP is now going ballistic. Remember Bitcoin? This will be better IMHO

I cant tell you which is the best exchange in Canada. Id like to know myself.

Aussie Digger

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Here is the chart