Gents, Ladies, Newcomers & Oldskoolers..
For a long time I kept calm and observed what is going on in the markets while letting the process naturally unfold. Due to recent events however we are now at a point in time where it is more important than ever to speak up. When ignorance gets to a level that is worrysome, it is time to act. The truth is the truth and it is our individual and collective responsibility to get the word out if necessary. I therefore will tell my subjective truth about the whole Ripple thing in this post. This is for everyone invested in XRP as well as everyone who is torn between being silent or speaking up.
You see, i get it. Most of you are making a shitload of money right now riding Ripple. It is wonderful to have money. But did you ever wonder about at what expense you are making this profit? Everything in life is in balance, you gotta give in order to receive. There are always two sides of a coin. If you are making a profit on XRP right now, you are paying a price. It is just that most of you are yet unaware what price that is.
In the beginning of the year I advertised Ripple from a technical charting perspective as very profitable. However during the year I researched a lot, and more importantly, the list of red flags added up and grew steadily so that I eventually reversed my earlier position in this regard.
In this article, I wanna walk you through my list of red flags. I expect not that you agree with me (bias is strong anyway these days), but i expect you to at least be open-minded and re-revaluate the critical components of the Ripple system that will be outlined below. If you disagree after reading the article, im fine with that. You can do with that information what you must. My responsibility is to speak up when misinformation rises parabolically, and it is getting time..
When Bitcoin spawned into this world it attracted all kinds of individuals. The majority of them were unsatisfied with the status quo of the economic system currently entertaining our everyday lives, and were looking for new, more efficient solutions that actually gives the power back to the people by eliminating third party interventions like banks. Early innovaters of Bitcoin were here for the global revolution that blockchain could potentially bring to the world and its citizens. It was all about immutability, public ledgers, anonymity, bypassing third parties and banks, in order to re-distribute the global wealth and regain financial freedom and independence for all of humanity.
If everyone becomes his or her own bank without any intermediary parties having control/power over your monetary assets, this is real freedom, at least in a monetary sense. This however is in stark contrast to the traditional system we currently entertain, and have already entertained for decades, while things get worse and worse.
I am talking about the system the world is based upon; the biggest scam in human history: Debt-based Fiat currency. Since Nixon took the Dollar off the gold standard, it is worth noting that the value of the Dollar and other Fiat currency is the exact value of the paper it is printed on. It is not backed by anything, but trust that it actually has any value whatsoever, which works for as long as everybody mutually agrees on that. It can be printed at will, and the decision to do so will be made behind closed doors. In the meanwhile, we have inflation which reduces the value of the nonetheless worthless fiat over time. The money you have at your bank today is getting more worthless every single day. “But I receive positive interest on my bank account!” some say. Sure you do, if you get a 1% interest on your savings, but lose 3% due to inflation, who is the winner now? Hint: It is not you.
The ignorance of how our economic system works (on which by the way our whole global economy is based upon) to me is beyond rational understanding. If you do not understand how our economic root model works, how can you build your life on top of that? Not understanding this underlying model is like constructing a huge house on ground which you have not previously investigated, just to eventually figure out that you have built it on toxic quicksand. It will be too late by then.
It is YOUR responsibility to understand the economic system the world entertains today. This is mostly targeted at Millenials. I know most baby boomers and elders have accepted the status quo as reality, which is not yet fully the case in younger generations. Especially when it comes to the very first generation that grew up with the Internet, which means (at least theoretically) having access to almost all information accumulated by human kind.
No, we did not learn much about the current system in school, we are not supposed to understand it properly in the first place. If everybody would suddenly realize the reality of the bogus our system is running upon, there would be blood on the streets, two minutes from here. But of course that is not in the interest of those controlling that system. If you wanna continue to sleep, don’t read further, just go ahead.
I will ebalorate about the state of the world in future post, for now I will focus on XRP and the red flags it brings with it.
XRP is not a cryptocurrency
“Released in 2012, Ripple is a real-time gross settlement system, currency exchange and remittance network by Ripple Labs. It is also called the Ripple Transaction Protocol and is built upon a distributed open source Internet protocol, consensus ledger and uses the native “cryptocurrency” XRP. Ripple’s focus is to create a system than enables “secure, instantly and nearly free global financial transactions of any size with no chargebacks”.
At its core, Ripple is based around a shared, public ledger which uses a consensus process that allows for payments, exchanges and remittance in a distributed process.”
- Wikipedia’s definition
So far so good. But this is not the end of the story.
Actually XRP is an electronic token, created and backed by a single company:
Ripple Labs Inc. - a global money transaction business.
It should be noted that there is a distinct difference between digital currencies like Bitcoin and Ripple’s XRP tokens. While Bitcoin is an actual cryptocurrency and store of value, XRP tokens are essentially backed by traditional (Fiat) currencies, as if they’re dollars or yet or another form. XRP is not intended to be money in the first place, it is a medium of exchange to transact value. It can be seen as a giftcard or token that can be sent in seconds & redeemed for fiat money.
When Ripple Labs Inc started XRP in 2012 they “created” 100 billion tokens out of thin air. Of the 100 billion created, 20 billion XRP were retained by the creators, who were also the founders of Ripple Labs. The creators gave the remaining 80% of the total to Ripple Labs which intended to redistribute remaining tokens to ecosystem supporters like banks.
However Ripple Labs today owns the vast majority of XRP (over 60% of the supply). It is their sole decision to cash in on the value or completely devaluate the market by flooding it with cheap XRP.
Another important issue to think about: It is easy to manipulate the market if one group controls 60% of the supply. It opens the gate for widespread manipulation. We do not know what those individuals do with this high valuation, but regardless, you are at the whim of a powerful 3rd party with uncertain goals.
If 100% premine aka “creation out of thin air” with 60% of the total supply being in possession of the creators is not enough for you to shake, lets go on…
Unlike Bitcoin, Ethereum, Litecoin and 90% of all cryptocurrency blockchains, Ripple is a relatively closed blockchain. Through some effort, users can go download a wallet and transfer Ripple to it, but you have to create trust lines with other organizations in order to get access. In this way, you can’t just send money to whomever you want, they have to accept you as trustworthy before allowing transactions. In other words, they control the servers that allow transactions. Isn’t that what centralization is all about?
When Bitcoin was originally created, it was designed to be a store of value. When you created a transaction, you were sending a store of value to another account (for payment for goods and services). Miners created nodes on the network to process transactions and were compensated with this cryptocurrency, either through fees or mining rewards.
This is not how Ripple works. Ripple has no mining or miners whatsoever. Instead, transactions are powered through a “centralized” blockchain to make it more reliable and fast. XRP was mined all at once by the parent company, with a majority of the cryptocurrency held by them. This is basically the pure definition of centralization:
“The concentration of control of an activity or organization under a single authority”
“The centralization of all financial power in the hands of its leaders”
In contrast, a defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
More than anything, Ripple resembles a fintech platform which has simply combined the best elements of fiat money and blockchain cryptocurrency.
It therefore should be considered Digital Fiat, not a cryptocurrency.
The Price You Pay
As previously stated, you are likely paying a price for the profits you make through XRP.
You invest your hard-earned Fiat or BTC into a token for which Ripple Labs never paid a dime to create. It cost them literally nothing to create the tokens people buy today at $4 per piece. 100% of the tokens were created out of thin air, while the majority of the supply is still in control of Ripple itself. The network is privatized, meaning that not everybody can participate in the systems, as trustworthy nodes are “selected”, which is the basic definition of centralization. If we think that further, in actuality you are buying worthless air, and make the creators incredible rich at the same time, while hoping someone will pay you more for the air of yours than you paid for in the first place.
I’m sure Chris Larsen is pretty happy about your Ripple enthusiasm…
Don’t fall for the hype. Do not focus on making money solely, there is more at the stake than just monetary gains. And it saddens me deeply to see that most have no clue about what is going on in the backgrounds. In my subjective analysis and understanding, Ripple is a trap, and if you currently hold XRP, you are right in it.
Hereby our money is our vote. By choosing to invest in certain blockchain projects, we also financially support those ideas that will eventually manifest and shape the New World. If you want to support an improved version of Fiat Scam, you can do so, but i ask you to do it at least consciously so that you can understand the impact of your decision, even if it is 50 years from here. We all plant the seed for our future right here right now, individually and collectively. In due time, the seed will either flower or degenerate.
It is up to us to decide.I want you to understand that this article is not driven by self-interest. I do not hold any XRP, nor do I desire to get a position. Nothing in this article is meant offensive in any way. I do not claim to be 100% right about everything when it comes to Ripple, but I gathered have enough indications and red flags to not be invested nor recommend it.
This article is purely driven out of the feeling of being responsible for what happens to and around us. All I am here for is to observe and make sure the transition into the New Age is going smoothly. It is also the logical consequence of the ignorance currently entertained in the market, where the many participants (especially new market entrants) are incredibly blinded by greed while not question fundamentals whatsoever.
Eventually I have nothing to gain by publishing this article, rather the opposite. Despite the obvious risks, I open myself to the shitstorm of XRP believers which is no fun to have. But that is the price I pay, and I do it consciously, because I know the reward will be the truth told, which has more value than any monetary gains in the first place. My hope is my subjective perception eventually leads others to question and investigate for themselves and shape this world to a better place by sharing their subjective insights and truths with everyone willing to listen. This is not about being “right”. This is about awareness and conscious decision-making.
Another thought: If XRP is used as a medium of exchange and is backed by fiat currency, while Crypto is the hedge against the global financial meltdown of fiat currency, isnt that an obvious conflict in there? If the economy melts down, which is a matter of time, Fiat becomes worthless anyway. What use do we have for a token that is used as a medium of exchange between Fiat currencies when Fiat currencies will eventually evaporate? Lets spin that further: IF Fiat currencies collapse, wouldn’t the trust in banks go completely extinct? Would there not be a giant outrage against these banks that manifested this situation by entertaining a economic model that creates more debt than money to ever repay it, while keeping it all hidden from the public? Would this outrage not negatively affect a system like Ripple which aims to make banks even more efficient in distracting wealth from the world’s population? While the whole world sinks in debt which cannot be repaid, while your income steadily decreases and your money gets more and more worthless every day as the FEDs printing machine is running hot, you give them the only thing that really matters when it comes to financial freedom in the future: Your precious Bitcoin.
In my subjective opinion, by supporting XRP we work towards the opposite of what we are trying to achieve in a decentralized world, to give the power back to the people to take it away from the bankers, the 1% of the 1%ers, who control this world.
If you only take one thing from this article, take this:
“Money is a vote. You decide what will grow and YOU will shape the face of this world for the coming New Age. Be responsible, be conscious. “
Lets wrap it up and come up with a conclusion:
XRP is 100% premined, Ripple holds 60% of the supply, controls which nodes are selected as “trustworthy” to confirm transactions, while they have paid nothing to create those tokens that people are so willingly buying at $4+ per piece and thereby make the creators insanely rich. Let us call it what it really is, digital fiat, the renewed version of the debt-based traditional fiat system, leveraged by latest technology - which eventually has nothing to do with cryptocurrency whatsoever.
And to reflect on it using Mr. Brandt’s words…
When it comes to Ripple, just ask yourself… Who is the few? And who is the many?
May the Truth be with you,