Recommended reading at: [link to www.zerohedge.com (secure)
"It’s fair to say that practically nobody who is speculating in XRP has the slightest clue about what it is, what problems it is solving, or even how many there are in circulation...XRP does not come into being as a valuable mining operation is performed, they were simply coded into existence by Ripple. How many and where are they?
Many investors new to the cryptocurrency space might not be aware of where all the XRP actually exist. Unlike bitcoin and many other cryptocurrencies, XRP isn't created on a particular timeline through mining – or the act of securing decentralized networks.
Instead, the 100 billion XRPs (the cryptocurrency's coded limit) are already available, with most under the control of Ripple itself. Ripple currently controls about 61 billion XRP, although in May (where the price ranged from 5 cents to 41 cents) the company announced it would move to lock up 55 billion XRP in escrow, to be released at a rate of 1 billion a month for at least four and a half years.
[Just like fiat money--created out of thin air--not by mining. They sell to dumb buyers and take ALL the profits.]
So there are 49 billion (with a “b”) XRP coins out there, with another 5 billion for ready use by the company and another 1 billion per month ready to hit the streets. Contrast that with around 16.5 million (with an “m”) Bitcoin out there, and a coded maximum of 21 million once they are all mined.In other words, there are 3,000 times as many XRP coins out there as Bitcoin
, and XRP coins have no mining function attached to them! It’s entirely unclear what their value proposition is here.
But people are afraid of missing out (FOMO) and so they are piling into XRP without any clear understanding of the value proposition. They see XRP going up in price and they want in. In other words, it’s bubble time.
According to people familiar with the space, including the digital asset expert who will be providing the insights at our cryptocurrency webinar, XRP is a useless and therefore worthless coin.