Investing for a normal person tends to be full of danger. Wall street is extremely powerfull and able to manipulate and they really love it when they can get ordinary people to buy hot air. People must understand that these games arn't played by fair rules, even in the stock market the big players have significant advantage's over the small, and they will use it to sqeeuze out the gullible.
People have also given reason why they expect certain coins to rise like Ripple- Hopefully replacing swift with the banks.
Not good reason as to justify a certain price. Especially when it would regard a coin used for easy transfer between banks price wouldn't really matter.
Having looked into ripple, basicly they can act as a sort of bank with power to money multiplication, almost as a central bank really. They create a currency of which they control the supply to facilitate transactions and they are able to increase the supply of the currency should more transactions happen with ripple accordingly so as to keep the price stable so to speak.
In the end ripple thus acts as a service provider to the banks while also (supposedly) being a bank itself that can return the value of ripple currency if asked so. Basicly they sell some currency which they control so that the buyers are guaranteed of it's underlying value which Ripple must be able to provide when needed. And the reason why their product is interresting to banks is that it gives them some added value when used for certain transactions. And by the same token even the small user is guaranteed from the underlying value since covered by Ripple and also the banks as long as they trust Ripple.
Thats all well for the product, but the question still is, what price is required here, and furthermore would it hurt if it remained at 1$ all the time? The answer imho is that it shouldn't matter at all. You see the banks that use Ripple as service could just aswell make their transactions with a big volume of 1$ currency ... unless afcourse the supply gets to small for the size of the total of transactions, at which point it's easy for the banks to buy more currency from Ripple as to be able to facilitate even larger transactions.
So, the only reason i guess why they lather let the price fluctuate, is that it's a question "for who does it matter". The banks that use Ripple for ex. would not have the interrest to keep buying more Ripple if they can also facilitate larger transactions by letting the price of Ripple rise.
There are a bucketload of things now to contemplate, just a few point i would think important:
1) Ripple can at any point saturate the market, and could have interrest to do so
2) Ripple currency can become obsolete by an alternative, rendering it withought value
3) Under pressure (say economic downturn) Ripple might be tested for it's abbilety to cover the value of the coin at which point they likely fail because of the nature of fractional reserve banking and the fact that there are no goverment guarantees to bailouts or to cover a minimum value for the accounts.
4) The banks that have bought the current stock of ripple could easily manipulate that stock
There is a very good chance of market manipulation but even more the whole thing going obsolete. Ill tell you who's going to get hurt when it would happen: Not ripple, Not the banks, but the accounts of their customers who have Ripple sitting in their wallet. And if Riplle the company is smart, they start to dump large volume's on the market when the price looks as high as it ever will get, perhaps even dump smaller volume's at several points where the news of other banks addopting it pushes it higher.
