Re: Vehicle Currency in Web Payments [WAS: Ripple]

On Thu, Nov 21, 2013 at 6:31 AM, Joseph Potvin <jpotvin@opman.ca> wrote:

> RE: "The Ripple network combines a currency market with a payment network"
>
> That's the point. Why?  Why does it not "stick to the knitting" of
> payments facilitation?
>

Combining the currency market and payment network allows cross currency
payments at exchange rates determined by a competitive world wide market.
Additionally, the payment network incentives the market makers to make
markets by adding liquidity to the market and providing the opportunity for
market makerts to make a spread by providing liquidity and facilitating
payments.

 I don't understand what you mean, what is knitting in this context?


> RE: "payments will only bridge through XRP, if people find it more
> efficient or otherwise desirable to do so"
>
> It's helpful to clarify the conditions for choice of a certain web payment
> vehicle "medium of exchange" over another.
>


When choosing between alternative paths for payments, the alternative that
provides the best value for the counter parties is chosen.

-Arthur