Change is coming, whether we like it or not…

Change is coming, whether we like it or not…

Today I want to share with you a quote from a Clifford Stoll article, written back in 1995 about the internet:

After two decades online, I’m perplexed. It’s not that I haven’t had a gas of a good time on the Internet. I’ve met great people and even caught a hacker or two. But today, I’m uneasy about this most trendy and oversold community. Visionaries see a future of telecommuting workers, interactive libraries and multimedia classrooms. They speak of electronic town meetings and virtual communities. Commerce and business will shift from offices and malls to networks and modems. And the freedom of digital networks will make government more democratic.

Baloney. Do our computer pundits lack all common sense? The truth is no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works…”

Hmmm… I bet Clifford had fun eating those words!

He said he did not foresee any change in how things were done before – but all of those things changed:

Virtual communities… hello Facebook, Twitter and all the other social media sites…

Businesses shifting from offices and malls to networks and modems… hello eBay and Amazon and all the rest.

Interactive libraries and multimedia classrooms… hello Wikipedia and Open University.

Thing is, there were many like Clifford who couldn’t or didn’t want to accept that change was coming.

We’re facing a similar situation right now, with cryptocurrencies.

Until a few weeks ago, I even felt that cryptocurrencies were not a big deal… but as I’ve said recently, I’ve done a u-turn on that belief…

I think the movement toward digital currencies has faced problems due to the sheer magnitude of what it would mean if it were to substitute fiat money.

Now, I’m not saying it’d go as far to replace the Bank of England, but there certainly is space for it in the economy…

Andy Haldane, the Chief Economist of the BoE, even said that a government backed digital currency could help with the fact that interest rates cannot go much lower:

You can read his full speech (and I recommend you do, because it really gives good insight) here.

Now as I say, I’ve done a u-turn on cryptocurrencies recently and one crypto in particular – Ripple (XRP).

After reading a lot around the subject and speaking to experts in the field, I believe that Ripple XRP is a fantastic currency to hold…

And it’s all down to the firm that made it.

The firm itself is also called Ripple and the reason why I feel there is importance here is because of its institutional usage…

You see, banks sometimes find it hard to source liquidity for certain currency transfers.

Let’s say, for example, that we have to pay someone in Tanzania (Schillings) and we have Armenian Dram.

The bid/ask spread you’d be quoted here would be huge if you were to pay via a normal system.

What XRP does is act as a source of liquidity and is able to settle the transaction in XRP (not the exchange currency) and convert from XRP to the desired currency on the other end… or just hold in XRP.

This liquidity provision is huge and allows for 1500 transactions per second.

To compare, Bitcoin allows for under 100 and cash settlement numbers around 20-30 per second.

Already many banks have jumped onto this idea…

Royal Bank of Canada, Westpac, Credit Agricole, Santander, Standard Chartered… they’re all clients of Ripple.

What’s more, the currency itself – XRP – is exhibiting stages of technical analysis.

As you can see from the chart below, a pennant pattern is forming on the XRP/DOLLAR chart:


Chart Source: Trading View Click to enlarge image.

If you missed my discussion of pennant charts earlier this week, click here for a catchup.

I’ll be delving into XRP more and more over the coming months, since I think even I only just have the gist of it so far!