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

Re: "at exchange rates determined by a competitive world wide market"

Precisely what I'm getting at. That doesn't exist today.

The purpose of my recommendations to include choice of purchasing power
index into the web payments protocol standard is to enable a market of
index providers, which therefore enables vendors to choose their preferred
method of maintaining multi-currency pricing. I propose that liberating
tangible market participants (i.e. those buying and selling tangible goods
and services of all types) from the whims of speculators is more
fundamental and more essential than choice of currency. Anyone who
purchased or received BTC a few days ago to carry out some sort of actual
tangible transaction just got creamed a day later, and if they bailed on
the slide, would be kicking themselves when it rebounded. What energizes
speculators, pulls the batteries out of regular goods and services market
participants.
http://readwrite.com/2013/11/20/bitcoin-bubble-investment#awesm=~onQz5VA8Igx96X
... but in my view, it's not even an investment in the economics sense of a
farmer investing in land, seeds and equipment. It's a speculation in the
sense of somebody buying wheat futures.

Joseph Potvin


On Thu, Nov 21, 2013 at 11:32 AM, Arthur Britto <ahbritto@gmail.com> wrote:

> 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
>
>


-- 
Joseph Potvin
Operations Manager | Gestionnaire des opérations
The Opman Company | La compagnie Opman
http://www.projectmanagementhotel.com/projects/opman-portfolio
jpotvin@opman.ca
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