RIPPLE Crypto-Currency Up 20% Today….. It’s The Wild West Out There

After the crypto-currency, Ripple, fell 12% yesterday, it surged over 20% in trading today.  Folks, it’s the Wild West out there in crypto-currency land.  I have been spending some time looking into these crypto-currencies because there seems to be a great deal of mystery behind them.  And I like looking into and solving mysteries.

Of course, the rapid increase in price has sparked some interest, but very few realize just how much energy and capital it takes to produce one Bitcoin today.  Actually, I was quite surprised.

I want my readers to know that I will be doing some research and writing some articles and Reports on these crypto-currencies (along with Gold & Silver) as I believe we are going to be seeing a lot more about them as well as rising interest in the markets going forward.

That being said, there is a lot of misinformation being spread around the alternative media about these cyrpto-currencies.

First…. these crypto-currencies are much different than gold and silver.  I know that.  I don’t need any of my readers to leave a comment making sure I know that.  LOL… I do.

Second… there is a lot of mystery behind these crypto-currencies in which the public has no clue.   So, I see a lot of opinions being made (negative & positive) due to a lack of knowledge or prejudice.

Third…. there is a good chance that these crypto-currencies will continue to gain more interest and market trading as time goes by.  However, it is the WILD WEST out there and a lot of people are likely going to lose a lot of money trading or investing in these crypto-currencies because they have no idea of what the living hades they are doing.

Lastly…. my interest in learning more about these crypto-currencies is to understand how they are functioning in the market and as a psuedo store of “Electronic Economic Value”, if there is such a thing.  Again, Bitcoin mining and transactions are consuming one hell of a lot of electricity.  We are talking TeraWatts.

Thus, Bitcoin mining is consuming an ever-increasing amount of electricity.  Thus, the cost to produce Bitcoin will continue to increase going forward… as it has in the past.  Whether that means a Bitcoin does hold some value, is another thing entirely… but again, I had no idea of the massive amount of electricity and capital expenditures it takes just to produce one Bitcoin.

I will be doing more research on this subject and how it pertains to Gold & Silver going forward.

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71 Comments on "RIPPLE Crypto-Currency Up 20% Today….. It’s The Wild West Out There"

  1. As a student of cryptographic/blockchain currency for the last 4 years and author of the book “Time Makes Money” (http://amzn.to/2soExDo) I have found The BEST source to understand all crypto/blockchain currencies especially bitcoin would be Andreas M. Antonopoulos. His witness to the Canadian Senate was just amazing. Here is his resent talk in Australia. https://www.youtube.com/watch?v=SMEOKDVXlUo&spfreload=10 Enjoy!
    P.S. the notes and links below the video are excellent.

    • crypo currencies are doomed to reach their natural value which almost worthless
      priceless! like a debit card

  2. P.S. Andreas M. Antonopoulos is the Steve St Angelo of the crypto/blockchain world.

  3. Ong Beng Hwee | May 31, 2017 at 6:21 pm | Reply

    Steve, thanks for sharing Ripple’s crypto. Looking for more crypto news in addition to your usual updates on silver, gold and energy.

  4. If we loose the grid all bets are off for cryptos, but hey if that happens all bets are off for most of life itself anyway.
    But, if not, I see the day when the dollar is forgotten and PMs are priced in which ever crypto rises to the top of acceptance.

  5. Dick Carmack | May 31, 2017 at 6:46 pm | Reply

    What happens to bitcoin when the electricity goes off?

    • You can have a wallet on home computer, transfer cryptos to it, then backup to a jump drive.
      If grid goes down get a black shoe string and let wife wear around neck as jewelry.
      Might not be as pretty as a gold eagle, but hey tell her it was worth a million just a few months ago.

    • What happens to your stawks, bank account, credit card, your digital life when the power goes off? If the power goes off then I won’t be thinking about the couple of grand I speculated with in cryptos. I’m more concerned with manipulation of cryptos by governments with a printing press buying and selling cryptos and creating instability. More importantly, why are we not seeing governments fighting cryptos? Actually I see corporations openly embracing the crypto movement.

      • bitcoin transactions are accessible by HAM radio, SMS or any other communications media. IF it connects to the internet then a transaction may be done. As concerning why government have not been fight it, THEY HAVE for the last 4 years. They have tried to crush it, outlaw it and penalize it. Many are in prison. New York passed a law against it! China outlawed it! This can not be stopped. Sooo if you can’t beat it….

  6. Since there are apparently an unlimited number of these ‘currencies’ that could hit the market, how can any credibility be given to any of them ?

    • There are 600-800 crypto currencies depending how one counts them, but it’s interesting to see the market niches and early adopters.

      Steve picked a good one here, Ripple is actually used by a number of large banks, 3 in Canada, BofA, Santander, Standard Chartered, UBS… at the moment it’s at $0.32.

    • First are winners who takes everything.

  7. Look forward to your deeper perspective, Steve, as I find it hard to regard these things as much more than the currency equivalent of fidget spinners, a temporary diversion.

    • Lore,

      Actually, I felt the exact same way about these Crypto-currencies. However, after reading a lot about them in just the past 3-4 days, I realize I was making opinions, assumptions and statements based on ignorance. I can assure you, these crypto-currencies will continue to grow in MARKET TRADING and PRICE as time goes by. Either I ignore them as an ELECTRONIC COMPETING CURRENCIES to FIAT and PHYSICAL GOLD & SILVER, or I learn about them to better understand their future impact.

      Again, I have thought up until recently that these Cryptos were just nonsense. But I can assure you with technology taking over everything today…. you can bet your bottom dollar that Bitcoin et al will become a much larger presence in the future.

      steve

      • You just threw the towel, maybe the time to sell…

        • cacamoulox,

          No, I haven’t thrown in the towel. You have jumped to a conclusion, which I am not surprised. My fundamental analysis of ENERGY, GOLD & SILVER has not changed one IOTA. ZILCH… ZIPPO. However, cryptos are going to become more of a force in our crazy markets. And I disagree that these will be a FLASH IN THE PAN.

          But again…. it is important to understand them before making any opinion. Thus, I would also imagine more and more people will continue to put out disinformation, hype and erroneous claims.

          My motivation is to take away some of the mystery and see how these cryptos will impact the markets going forward.

          If you think it is unwise to understand one’s competition, then you do not understand the markets.

          steve

          • DisappearingCulture | June 1, 2017 at 9:26 am |

            “My motivation is to take away some of the mystery and see how these cryptos will impact the markets going forward.
            If you think it is unwise to understand one’s competition, then you do not understand the markets.”

            I welcome your analysis. However my life and mind is cluttered & without a lot of excess capacity to start embracing or using cryptocurrencies.

          • DisappearingCulture,

            Yes, our lives are cluttered with enough technology. I get that. Actually, I have enough to research and analyze with ENERGY, MINING and GOLD-SILVER. Most precious metals analysts have stated that they are running out of things to talk and write about. I have never had this problem. For me, there is no shortage of things to write about.

            That being said…. up until recently, I shrugged Cryptos off as mere TECHY GARBAGE. But, as the price has risen considerably, it has forced me to take a closer look. Some of these cryptos, such as Ripple are offering payment processing services that makes VISA look like the STONE AGES. I had no idea, because I remained IGNORANT
            .

            So… being ignorant in a changing market can be quite harmful. Which is why I believe it is important to understand crypto-currencies and how they will impact the market going forward.

            Actually, I would be STUPID not to.

            steve

          • cacamoulox | June 1, 2017 at 10:27 am |

            Same can be said for me, I just say a temporay top may be in the cards. Bitcoin could be exchanged in the future for maybe 10 years of work by a human and crystallized in an electrical illusion. Bitcoin is probably beyond capitalism folly which burns energy for nothing, at least with gold you had something to be used in technologies or teeths useful for human.
            Anyway be sure if oligarchies do not outlaw them, it will be another great domination tool like gold in the past and later fiat…

      • I am afraid there will be somekind of EROI argument on cryptocurrency before the end of this year.

        • Bukharin,

          Why are you afraid there will some EROI argument on Cyptos?? I don’t see any reason why an EROI would be used for cryptos, but it doesn’t change the fact that Bitcoin consumes a great deal of energy and capital for its mining and transactions. Maybe this means nothing in value terms. Maybe to some, it does.

          steve

          • cacamoulox | June 1, 2017 at 8:31 am |

            You have found the philosophal stone with EROI, exactly the same way this clown of Fekete found the gold basis theory which was a complete fairy tales. Crypto success only validates the theory as money as a social relation first (not only). Money does not exist per se, that’s just an illusion which will hopefully disappear one day…

  8. Looking forward to “your way of solving the mystery” Steve….I bet it will be different from what we know about….and it would be then “advantage your readers”….Cheers

  9. AI will utilise alot of idle computing power, harnessing cpu’s across the net. (Here’s an interesting q for you – how many cpu’s do you need to make a super computer equiv?) There is definite value in blockchain tech, as evidenced by the billions banks spend on keeping their obsolete systems running. I expect bitcoin to go the way of a pointy stick relative to a sword then guns as the tech matures. Ethereum shows what is possible re smart contracts, but is doomed by its flaws. But money is made in the hope of making money – ie ponzi.

  10. Looking forward to your excellent analysis Steve.

  11. Hi Steve,
    There are a lot of informative videos on youtube in regards to crypto currencies…”the daily decrypt” and “ameer rosic” both provide useful and valuable information. I would suggest opening an account on coin base for about $500.00 (not enough to get hurt on) and then transferring that amount to a desktop wallet such as Exodus…until you can purchase a hard offline wallet. Both coin base and exodus are free.
    Sometime reading about how to swim is very valuable but actually jumping in the pool can teach you a little more while you are learning. $500.00 won’t let you drown.
    Crayfish

  12. Steve,

    Congratulations on researching this topic with an open mind. You’d be surprised how hard that is to find these days, as people make a lot of assumptions about crypto with no understanding of how they work. I’ve been into crypto now (mainly bitcoin) for the past 4 years, and into PMs for longer than that.

    R.Frank’s comments above about Andreas M. Antonopoulos are spot on. In my opinion he is the face of bitcoin who understands the technical side, but also how to convey ideas, concepts, and real world value to the layman. His YouTube video “blockchain versus bullshit” is a must watch, especially in regards to Ripple. If anybody wants to get into crypto, I would advise against Ripple as an entry point. That is the banker’s coin that is NOT decentralized, not trustless, etc. Ripple is the type of coin Andreas is basically referring to in that YT talk I just mentioned. While you can obviously make money trading it, Ripple completely goes against the spirit of a decentralized blockchain.

    When it comes to the energy of mining bitcoin, you are correct about the consumption of electricity. This is one “flaw” of the Proof of Work (PoW) mining system. For this reason, many second generation coins have switched to a Proof of Stake (PoS) system which requires very little energy compared to PoW coins. The staking and MasterNode systems of coins like PIVX that use PoS might be the future of crypto. These coins allow any user with an average computer to stake (mine) the crypto without needing to spend thousands of dollars on unique mining equipment and compete against the large big boy miners. And their updated governance leads to systems where it doesn’t take two years to have a debate and consensus over changes like SegWit vs Bitcoin Unlimited. Also, when researching remember that some of these cryptos aim to be an actual usable currency some day soon (PIVX, TX, Dash, Monero, etc) and others aim to be a business or solve a problem in the real world and provide value to end users (BAT, Storj, XBY, EDG, Qtum, ETH, etc). They need to be compared separately based on those features, and value that they bring to the market. One can’t compare PIVX vs EDG – it isn’t an apples to apples comparison.

    There are spirited debates about crypto even in the PM world. Check out bullionstackers.com and look at the Bitcoin (and alt-coin) threads. The crypto conversations have really heated up in the last 2-3 months. There is even a thread about Gold vs Bitcoin.

    Best of luck in your research. Feel free to email me questions anytime.

  13. There are two big differences between cryptos and PM:s that make cryptos unsustainable as money.
    First they need a very complex system to survive. Gold and silver are money because they survive when complex systems break down.
    Second they need enormous amount of energy to survive. PM:s need enormous amounts of energy to be extracted from the ground, but once extracted they need little energy to be handled and stored.
    Cryptos need a lot of energy all the time, otherwise they collapse, that is far from sustainable.
    Last we also have Gotts Law, what has worked a long time will be the preferred.
    Think for a while, when the shit really hits the fan, would you bet your life-money on newly introduced cryptos or gold that have survived thousands of years?

    • they are’t worth anything

    • Another thing that bothers me is that some people do not factor any strike back from governments and central banks and even banking cartel. If they decide crypto are ilegal there will be…

  14. Hi Steve,
    First time I post here though I have been reading and appreciating your site since years, stacker of PMs for my children.
    Congrats for a unique source of information and analyses, especially linking money and energy out of the MSM.
    Also very interested by your future analysis on cryptos that I perceive as hot and volatile currencies only for possible flows but very risky.
    You may be interested by the analysis below:
    http://www.naturalnews.com/2017-05-24-do-the-math-heres-the-rational-analysis-why-99-of-current-bitcoin-owners-will-never-be-able-to-sell-bitcoins-for-anything-close-to-the-imagined-current-value.html
    Please keep on.
    Serge

    • Serge,

      Yes, I read that article and I believe the author is making some invalid assumptions. However, I am going to wait until I can offer a more ROUNDED and LOGICAL explanation of these cryptos. Again, there is a lot of misinformation and hype being written and spoken about these new cyber currencies.

      steve

      • OutLookingIn | June 1, 2017 at 9:47 am | Reply

        ” – a more ROUNDED and LOGICAL explanation…”
        FACTS:
        Counter parties
        Monetary prerequisite
        Risk degree
        Dilution
        Inclusion
        Steve, if you explore these main topics when assessing the viability of crypto-currencies, you just may find yourself in a different place then where you are now.

        • OutLookinIn,

          Would you mind elaborating?

          steve

          • OutLookingIn | June 1, 2017 at 12:05 pm |

            The counter party being a computer system.

            Cryptos do not meet the requirements of “money”.

            1. unit of account
            2. medium of exchange
            3. portable
            4. durable
            5. divisible
            6. fungible
            7. stable store of value

            High risk level of continuing cheap energy dependence.
            Dilution is occurring at a frenzied level – 600-800 cryptos?
            A very small segment the world is included in the sphere.

            Finally, they do not even meet the definition of “currency:”
            – That which is current as passing from one to another; circulating, as a coin being circulating in currency.

            I would propose to you that these “financial products” will not enjoy a long life span. Not near as long, as owning and holding physical gold or silver.
            They will lead many to financial ruin. Granted, some will benefit while most will not. These financial products (IMHO) are but flashes of what the ‘New World Order’ dream of.

          • OutLookingIn,

            Totally agree with your “SEVEN POINTS” why Cryptos don’t meet the same requirement as money. Actually, I never thought they did in the first place.

            Now that we FULLY UNDERSTAND THAT, there is more to Crypto’s, such as RIPPLE, than just mere speculative digit crypto-currencies. As I stated in a previous comment, Ripple’s payment processing protocol can make payment for a client-customer in 5 seconds internationally at a fraction of a fraction of a penny. Now compare this to VISA which does provide instant APPROVAL for a payment, but it doesn’t transfer the funds for 3-5 days and charges a $2 fee or percentage.

            So, let’s totally remove the definition of MONEY from describing CRYPTOS. However, that does not change the fact that it takes a great deal of energy and capital to mine one BITCOIN. Is it a waste of time to produce Bitcoins? Yes, could be. But, I am not driving the market or making the decisions.

            As I said before, there is more to these Crypto-currencies than just SPECULATIVE Electronic Digits. So, it would be WISE, PRUDENT and SMART to understand what is now becoming competition to many other markets and industries.

            That is ALL I AM SAYING.

            steve

          • cacamoulox | June 1, 2017 at 1:56 pm |

            The cost of production of a bitcoin is dependant on its value, it looks like an illusion or more exactly a circular definition.

          • cacamoulox | June 1, 2017 at 3:21 pm |

            For SRS Rocco, (free like the 19th centurty ones !!!) markets is GOD. Funnily to produce a bitcoin a few years ago required 10 cents and not 1000 dollars.
            I could not imagine it was possible to creep this way…

  15. Adding: I’m from Belgium.
    And thank you for sharing!

  16. Anyone keeping track of embedded energy per coin (bitcoin or otherwise)?
    Ag = 33 kWh/oz. (0.8 gallons diesel per oz)
    Au = 1302 kWh/oz. (32 gallons diesel per oz)
    Source: https://srsroccoreport.com/160-to-1-gold-silver-ratio-every-investor-needs-to-know-about/

    BTC = 4.31 kWh/BTC (from 2011 data, not sure where their “variable mining efficiency” number came from or I would have updated myself)
    Source: https://bitcointalk.org/index.php?topic=9565.0;prev_next=prev

  17. Around the time of the Civil War in the U.S. there were some 10,000 currencies in issuance. Where did that get us ?

    • Silvrwllwn,

      Yes… there were a lot of paper fiat currencies around the Civil War. True. And there are a lot of fiat currencies today backed by debt. However, crypto-currencies will continue to expand in the market and in the public’s attention.

      That being said, I can continue to be ignorant and brush off these crypto-currencies as just another FLASH IN THE PAN, or I can take a detailed look at them and see how they are going to compete with Fiat Currencies, Gold & Silver.

      While I do realize that the DIRE ENERGY predicament we are going to face in the future, will likely put a BIG MONKEY-WRENCH in complex technology, such as crypto-currencies, we will likely see these gain a lot of market share over the next 2-5+ years before the PHAT ENERGY LADY SINGS.

      What is happening to Cryptos will make its way into physical gold and silver. But, along the way, I see no problem with understanding a new market (crypto-currencies) that will likely pull a lot of funds away from other markets, especially the STOCK, BOND & REAL ESTATE MARKET.

      steve

      • If such scenario happens crypto will win definitively over gold.
        Crypto is like contemporary art : the more Picasso auction prices rised, the more it was expensive to mine Picasso works : one hour of work of Picasso was valued at nearly 0 at the beginning of his career and a few decades later, it was 1 million USD or so but it was the same rotten S**T.
        Crypto is indeed capitalism illusion into its final stages…

  18. There’s an old axiom, if you can’t hold it you don’t own it. Crypto currencies are a fools errand. Don’t get suckered into that which man has created. Gold and silver may suffer some losses in the short term, but in the long term the “real” money will win out when all the bubbles we’ve created begin bursting. Those heavily invested in crypto currencies will be jumping out of office buildings when that day arrives.

  19. As the old English saying goes: first things first. Gold is the only money. Gold is a commodity and that is why it is money. Money is a medium of exchange and a commodity as well. Currencies like Dollar or Euro are curencies and not money because they are not commodities. Every commodity has its own intrinsic value. Curencies and crypto-currencies have no this value. To be honest I am not against crypto-currecies. I only wonder if all that confusion about Bitcoin is the first step of trying to escape from the ruling of central banks? The first worldwide mass rebellion?

    • Most american people believe in opposition between state/public and private.
      Unfortunately they know NOTHING in history. The argument on bitcoin is it is costly to produce bitcoin because of internal rules.Reality is simple : just a capitalist game : expecting a fool buying the same shit higher later…

      • “just a capitalist game : expecting a fool buying the same shit higher later…”

        Maybe you are right, maybe not. Time alone will tell.

  20. Cryptos are going up because people are looking for a safe haven & they cannot be controlled on the comex.But just like the cost of mining precious metals worries me the cost of mining “an electronic bit” worries me even more because its even less tangible. But just like allthings everything can remain irrational longer than you can remain solvent.
    R.M
    United Kingdom

    R.M

  21. Bill Gates says crypto currencies are here to stay and you won’t be able to get rid of them. So, I think I’ll keep an open mind. Honestly, I’ve invested enough in non-precious metals (lol) over the last 7 years. If they finally do let lose…then great, I’m in great shape… if not…I’m going to hedge my bet with some crypto insurance.

  22. Historically fiat currency was considered near worthless until they could not produce enough coin to meet demand caused by the growth and deployment of the railroad traveling at 25 miles per hour!. Then came the growth and development of the automobile and sealed the standard of fiat currency. Airplanes forced the development of the credit card when transatlantic passage was common replacing the need for a Swiss Bank account . Now we have the internet where instant communication is worldwide! BUT payment is stuck in credit cards! Or I could send a box of fiat or silver/gold coins!
    So the question is are we as a civilization living increasingly more and more in the digitized world or are we returning to the days of 4 miles per hour staying local and using gold/silver transportation at the speed of a horse or are we returning to 25 miles per hour as during the railroad and 35 miles per hour for cars requiring higher quantities of fiat or aircraft requiring more credit cards? If it is the internet then we MOST have a currency that supports and facilitates at the speed which we communicate.
    Which is it? are we going backwards? staying the same? or moving into a digital world?
    IF it is a digital world then we need a digital currency!
    P.S. the internet was designed by DARPA called the ARPA net to provide communication in time of nuclear war… The internet isn’t going away!!

  23. Dick Carmack | June 1, 2017 at 4:35 pm | Reply

    Fiat money and Crypto-Curriencies are both con games. When confidence collapses, gold and silver will still be standing. It’s just a matter of time until the latest con goes the way of the first one. “Ye shall be like gods.”

  24. This keeps happening repeatedly each time we change a mode of transportation/communication a new currency is developed to accommodate it. The railroad and the automobile forced the acceptance of fiat over gold/silver transaction because of the mint and transportation costs verses paper. It took about 2 life time before everyone used fiat. Then came the airplane with it’s transpacific flights which brought credit cards! How longer before everyone had one? 1 life time. Now we live half our lifes on the internet how long before everyone uses crypto currencies?
    CoinDesk reports there are 14 million wallets holding bitcoin……
    The are 3.2 billion people using the internet…..
    The next 4 years there will be 5 billion world wide on the internet!…..
    Only one will dominate for global internet transactions is it Gold/silver? The dollar/euro/yuan? Will it be Visa/Matercard/American Express?
    Can you buy Gold and Silver with Bitcoin …. YES
    Where? All over the World!!!

  25. Adam Gallaher | June 1, 2017 at 8:25 pm | Reply

    I’m curious if you can research the cost of producing one silver dollar (1oz)..& OR the cost to produce one (1oz) USA gold coin and show us the comparison in price to producing (1) BITCOIN

    • Adam Gallaher,

      That is exactly what I plan on doing. However, it will be in a new PAID REPORT.

      steve

  26. I you bought Ripple at .01 cent and you didn’t sell to make 30+ times your money because you think it will never go back down below .05 cents again (and Bitcoin will go below $1000 again based on the charts), you are delusional. There are over 800 crytos and more growing. You and I would make Bobcoin or Whatevercoin out of thin air and hope some suckers buy them, as with Bitcoin. With Ripple, the XRP is the coin and not what banks use. Avoid Ripple if you play this space.

  27. JP Morgan should create the crypto called, “Silvercoin” and back it with their massive physical hoard of silver to cash in on the crypto frenzy bubble that is short-lived based on their charts alone. Many crypto bad-holders are going to get burned soon. I bet people would back up the trucks and buy JP’s fiat “Silvercoin” too, rather than buying physical silver. Many physical stackers are forsaking buying more physical silver now for whatever fiat crypto which they always been against; but now, they praise and promote any or all fiat cryptos. Odd, don’t you think?

  28. Lots of speculation here, but little knowledge – only one poster understood crypto at all.
    Why not invest a small amount? I bought $155 of XRP (Ripple) a few years ago- and forgot it! Until I checked recently and it was worth $3000 – 20X.
    I suggest buying one Ether and forgetting it for a few years. Maybe you lose $200, maybe it turns into $10,000. Risk reward is pretty positive for spec money. The big money (and the smart money) is moving in, so don’t expect it to vanish.

    • To add one point – market cap of ALL cryptos is a tiny $88 billion – less than 10% of Google or Amazon. There is lots of upside.

      • Amazon and Apple despite being far from perfect are providing something.
        A bitcoin is usless except if something pays a higher fait price in the future…

        • Cacamoulox,

          LOL… you are really INEPT and IGNORANT about cryptos. But, as I said in a previous comment… you will continue to plaster negative comments as BIG MONEY really starts to move into these crypto-currencies.

          steve

          • cacamoulox | June 4, 2017 at 2:57 pm |

            Moving money easily is not enough to justify the implied value of a crypto.
            A currency does not provide any real goods or service per se, it is just a (complex) social relation which implies proving some in the future.
            Bitcoin is an asset, not a goods or service (like a car) per se or a provider like apple…
            Funny you have to go to personal attack, looks like a new converted religion zealots !

  29. Sir, the big money and the smart money is already in BEFORE the recent frenzy bubble up, as insiders own 62% of XRP. If your XRP is now worth $3000 and you are up 20x your money and not selling to lock-in your profits. It would be like you owning a stock that’s up 20x and you not selling to lock in your profits. But with XRP, the shot up only happened in a few weeks and it already went down to .19 cents and based on the charts, it will go back down below .05 cents again when all those that bought at the top are burned as they watch XRP and Bitcoin and all the others crash down.

    The founders of Ripple, Jed McCaleb, Chris Larsen and Arthur Britto gave themselves 20B XRPs early on. This later came to bite Ripple. Jed left the team to start his own version of Ripple called Stellar, and decided to sell his XRP stash, resulting in a legal kerfuffle, a settlement, and a schedule for how those coins may be sold. If those numbers are correct, Jed is still cashing out 20k USD per week, and come ~2019, he will be able to cash out 750M XRP (worth ~256M USD at today’s price of 0.34 USD/XRP). Not an ideal situation if the money from your network will be going to a former employee building your direct competitor to the tune of a quarter of billion dollars. This means they will dump their XRP which crashes its price down. This is why XRP is rigged and controlled and should be avoided as the big money and smart money is moving OUT of XRP to profit take, which the dumb money and small money is moving in XRP now, being the losing bag holders, as it will drop below .05 cents again. Just watch.

    Here is an informative article on Ripple that would cause all to avoid the risk of buying XRP:

    The founders of Ripple, Jed McCaleb, Chris Larsen and Arthur Britto gave themselves 20B XRPs early on. This later came to bite Ripple. Jed left the team to start his own version of Ripple called Stellar, and decided to sell his XRP stash, resulting in a legal kerfuffle, a settlement, and a schedule for how those coins may be sold. If those numbers are correct, Jed is still cashing out 20k USD per week, and come ~2019, he will be able to cash out 750M XRP (worth ~256M USD at today’s price of 0.34 USD/XRP). Not an ideal situation if the money from your network will be going to a former employee building your direct competitor to the tune of a quarter of billion dollars.

    P.S. Great site and very informative. You seem to be balanced in your posts and very informative. Thanks for your hard work!

  30. I have been looking at some introduction of YT videos of Antonopolous. I am squarely in Steve’s camp admitting that I need to understand more before making more educated observations. It will indeed be interesting to read this comment a year or two from now to see what’s changed.

    While I readily appreciate the anonymity and freedom from authoritarian interference as long as the internet is up (I even have HF ham radio and P4 Dragon 7800 SCS modem from which theoretically I could eventually process Bitcoin via peer to peer transactions) there are some basic issues:

    It does require energy to create and maintain the internet BTC transaction, so my understanding is that here would have to be some baseline “service charge”, albeit it very small for bit coin use. Correct? ( I don’t understand where this enormous energy bill for BTC is coming from.)

    In theory you are paying a premium for anonymity, ease of use, security, untraceability, etc. when you buy/use BTC, but is this worth the current amounts people are paying for BTC presently? By way of example, if I total all the costs of using BTC, including my Elecraft KX3 radio, modem, antenna, electric power, computer or iPhone which has the BTC platform OS installed, my cable internet provider fee etc, most of which I already owned anyway, is BTC really worth $2,400? What is actually backing this price except for pure short term speculation and getting rich schemes?

    If I buy Bitcoin at $2,500 and want to buy a 4 wheeler ATV for $2,500 from a dealer who accepts Bitcoin, I think the 4 wheeler is probably going to be priced at or near the current “value” of BTC. He is not going to accept 1/2 Bitcoin thinking that the value will go up, and I am not going to offer him 2 Bitcoins ($5,000 present value) because I am thinking the value is going to decline. In the end, I am still paying for the current value of the 4 wheeler, whether in terms of gold, dollars, or bitcoin. Just as I am confident that the dollar will decline in value, so could BTC because it’s ultimate value , when everything smooths out, will be derived from some other commodity or PM.

    But for now, you will get no argument from me. Those that have had the vision and expertise, and gambling savvy to purchase BTC and ride the value up and profit enormously, can ignore this argument/observation. But if we are talking long term, well, this is just my 2 cents.

    Other competing crypto currencies will emerge as there appears to be minimal barriers to entry (true or not?), and eventually the prices will converge, just as cell phone pay plans, to the costs of running the crypto currency systems. We will be paying for the service, convenience etc as mentioned above, not for any inherent value in BTC.

    In essence, the question is, what will back up the fiat currency that allows futures purchases of Bitcoin? In other words, people who are trying to enter the BTC community still need to pay fiat or some other asset to purchase their first Bitcoins.

    It all gets back to the fact in the long haul, that you have to have something backing money in addition to the attributes of BTC.

  31. pennies onthedollar | June 2, 2017 at 2:40 pm | Reply

    One day…. Thermodynamic Bitcoin Collapse lol. Not today though! Cryptos are the RESET.?

  32. Many don’t know the Ripple network is what banks use to transfer funds and XRP is a separate token fiat coin which is 60% owned by Ripple (so, it’s centralized, unlike Bitcoin). More info here, and you will learn why XRP was under .01 cent given it’s not needed by banks to transfer funds: https://www.youtube.com/watch?v=JzgupB_YO_8

  33. Tommy VanDerLaan | June 4, 2017 at 4:31 pm | Reply

    im disappointed in Steve these crypto’s are nothing more then a CIA created test run for a digital replacement of federal reserve notes when the system crashes and they start over new they want to fool everyone into thinking its cool to be paid in digital tokens..

    and im super suspicious of anyone claiming that virtual super mario tokens hold the same store of wealth as gold and silver..

    i tell everyone here beware of anyone that tells you CIA created crypto’s are different then Federal Reserve notes..there’s NO replacement for gold and silver

    • Tommy VanDerLaan,

      Don’t be disapointed in the messenger who is telling you that the market is likely to move into CRYPTOS in a big way. I actually don’t agree with the market doing it, but it makes LOGICAL SENSE as I look around at all the insanity. So, again… you can’t blame me for being the Doctor who tells the patient that eating McFATS 3 times a day and smoking 2 packs of smokes a day is likely going to put the individual SIX FEET UNDER.

      I am quite surprised that readers are replying in this manner as if I agree with the INSANITY… LOL.

      steve

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