Bitcoin Forum

https://farm8.staticflickr.com/7382/9194941236_8ff4935ff0_o.png

https://ripple.com/blog/bitcoin-bridge-lets-ripple-users-make-payments-to-bitcoin-accounts/

Looks cool, but as long as the total number of XRP in existence, and method for their distribution, is not transparent I would avoid assigning any value to them.

That's not an unfair opinion, however this dosen't have anything to do with XRP value.  From my understanding, this is simply a means to move Bitcoin, in and out of any currency, easily.  This is good for Bitcoin.  

Their plan in regard of bitcoin could be formulated as (in)famous: "Embrace, Extend, Extinguish" imo.

No biggie, just gives me something to do with all those XRP faucets... convert em straight into something with real, actual value like BTC :)

If they could accomplish that without XRP they would be hailed as heroes I'm sure.

Instead many (most?) regard what they're doing as a scam (or at best a misleading venture) which may benefit them and their investors with added benefits to cryptocurrency.

One of the big problems with cryptocurrency is it's hard to exchange it into other currencies. That's because the traditional financial system is not flexible that way for AML reasons. The reason Ripple seemed such a big deal is because they could provide a sort of bridge currency to link all currencies for direct exchange (no more wire fees, documentation etc.). They did this with "ripples" which were supposed to be like IOUs which held value. I'm not physically near you, but if we're friends and you trust me I could give you an IOU for $10 worth of ripples and send it to you online. Theoretically that $10 is real value because you'll get it from me when you see me. Well if that's the case then you can instead send that "10 dollars" to Sally (so you owe her $10) who can then trade it too. As long as I can be counted on to honor the $10 then the value is real theoretically.

That's my understanding of the original Ripple system anyway. It required a level of trust, but as long as users knew each other to some degree it could work. Well if that's the case then anything, including gold or euros, could be traded too.

The problem is Ripple seemed to go away from this and close their model where they issue XRPs without transparency. That means they can increase their own bank accounts any numbers of XRPs (for free) and have that be worth real value to anyone valuing XRPs. In an ecosystem worth billions of dollars of trade that could mean a lot of money. I like that they're trying to solve the problem, but I think it can be done other (more open) ways too.

I heard that almost all ripples are premined and not open source as they say it is. Just something I heard.

This is not heard, this is the truth cast in stone

The pros and cons of Ripple have been argued to death here and don't even belong in this section.  This thread is not about Ripple, as it relates to that.  It's about the Bitcoin Bridge which makes for paying a Bitcoin account, directly from a Ripple wallet, with any currency.  You don't even have to own BTC to pay someone in BTC.  That's awesome!

Whether you like or use XRP's is completely irrelevant to this topic. This is about the potentials of the payment network that is Ripple, not the internal currency.  This is good for Bitcoin, period.  

Good in short term. Long term plan is to replace bitcoin with XRP. Nonetheless I don't perceive Ripple as a scam.

ya cause it's so much easier to get gov fiat into XRP fiat and then get bitcoin as opposed to just trading gov fiat for bitcoin.  gee, i wonder which is the unnecessary step.

Well, this basically give the option to use any service that enables you to get Fiat into the Ripple system as Bitcoin exchange.

This could be interesting.

Also, now I can finally cash out my free Ripples with one easy step.

So.. is Ripple digital Fiat? What to they get from exchanching all the currencies?

Patience my son.  Patience.

That is a point that deserves a thread of its very own!

Need funds to buy BTC?  Check your Ripple account!
 - http://bitcointalk.org/index.php?topic=249311.0

Isn't Ripple a centralized exchange that can get blocked by the US government, just like Mt. Gox?

But you have to have XRP to do it, no?

It's a pump for the value of XRP before the dump, capitalizing on how difficult it is for some to buy BTC with fiat.

I'm beginning to wonder who is really behind the Mt. Gox trouble... could it be one of the people who helped design Mt. Gox?

No, Ripple isn't actually intended to be a currency unto itself. XRP is designed to work as payment for a transaction on the Ripple network. However, being used in this way also gives it a value of its own in which it could be used like a currency. That is why people freak out about the creators not just giving it all away or letting it be mined. They don't understand the core concept of the "currency" itself.

I equate it to the resources required to create a product. In order to make a wooden chair a person needs lumber, and this lumber has a value. Well, in order to make a transaction on the Ripple network a user needs XRP. The "transaction fee" which gets destroyed and not collected by anyone is incredibly small (1/1000th of an XRP).

But it's also more than that, it is an intermediary. So XRP has a certain value that can be quoted in terms of every currency instead of in traditional pairs like you will see on the Forex market. This way, any currency can be exchanged for another instantaneously by going from currency 1 -> XRP -> currency 2.

This. A dev even admitted that XRP will compete with Bitcoin down the road.

Yeah, I heard the postage stamp to prevent spam speech.

The post office doesn't make stamps difficult to obtain, nor is there any value in the postmaster keeping half the stamps to himself.

Critical thinking, people. Use it.

Uhhhhhhh, what are you talking about? The postmaster DOES keep all the stamps to himself. That is until the time comes to sell them for an acceptable price in order to compensate both himself and his workers for the work that they do in order to deliver your damn mail.

I think you need to give your own critical thinking another shot.

You have to view Ripple as 3 levels:

(1)  A fast global payment network (10 second ledger blocks).

- it will be decentralized once Critical Mass is enough to open source

(2)  Built-in exchanges for ALL currencies and Custom Currencies...
Now linked directly to Bitcoin network.

- plus anyone can create custom securities = killer app
- plus anyone can run an exchange = killer app

(3)  XRP = internal currency = brilliant idea to make #2 work

It's not about XRP, it's about #1 and #2 = Good For Bitcoin

The whole "postage stamp" metaphor was flawed and outdated...
It was meant to explain something very complicated to idiots.

You are obviously months behind on the news... so, tell us what's new in Jan 2013?

Bring me up speed.
Go ahead, give it your best shot.

XRP as an anti-spam measure is what is an obviously flawed and outdated concept.

The real purpose of XRP is clear - give power over network use to those who have them, and those who have them are those they gave them to.

Don't be an idiot bitch who gets on your knees before them and bows down. Have some pride.