So, a guy on the Internet was saying that Ripple’s purpose is “to send money quickly and efficiently…and with low cost transactions.”
I suggested to him that if you want to send money quickly and efficiently, and for a low cost, just use PayPal or Venmo.
Then another guy asked, but how about sending millions of dollars over PayPal, or high PayPal fees for sending, say 100,000 Euros? Well, please tell us how XRP’s volatile price makes moving large amounts of money any better than the established alternatives? And why not use BTC over XRP if you’re somehow needing to sacrifice a lot of price stability, given that BTC has a more secure chain and the fees still aren’t relatively high for moving large amounts?
The other guy also mentioned that you need a bank account to receive PayPal dollars but you don’t need a bank account to receive XRP. OK, so again, sure, if you’re in this hypothetical scenario where you are somehow needing to sacrifice a lot of price stability while transferring these large amounts, why not use Bitcoin, where, like I already said, the fees relative to the large amount that you’re sending still aren’t very much at all, and then, you’re at least settling it on the more secure chain while still receiving those funds without a bank account?
I asked him to please describe a more specific scenario, where you’d need to receive a large amount of money, but you can’t receive it through a bank account — so, was he talking a large illegal drug sale, maybe? For that, XRP, with its KYC and centralized nature, is not preferable, given that the government can ultimately more easily monitor that, and, with XRP, it has also had a more severely fluctuating price and a less secure blockchain than Bitcoin.
He presented the example of selling a house for XRP without having to go through a bank, and said that it would somehow save on costs because it would have hardly any fees to do it that way. Was he being serious? A person would really want to take on the volatility of the XRP price while being paid for something as valuable as a house just to save on some fees? The only real world reason I can think of for wanting to take on that volatility and to want to avoid a bank is if it were for some sort of *illegal* sale of a house, and, in that case, again, you’d be better off doing the transfer using bitcoins, which don’t involve KYC or a centralized network like what Ripple has, and at least because there’s *a better possibility* that the bitcoins were received (and could be received) anonymously (or psuedonymously).