Quote from: magnebit on September 30, 2013, 12:36:52 AM

The ripple currency XRP is only bootstrapping in that it is used to execute transactions in Ripple network. Each ripple XRP unit can execute 10000 transactions. So, you will only ever need one or two for your whole life. Ripple currency XRP were never meant to have any real value beyond spam revention.

XRP uses:

Prevent transaction spam
To protect the network from excess transactions, transaction fees are raised when the network is under load.
Prevent ledger spam
To keep processing fast, the ledger size must be limited. XRP reserves are required to occupy space in the ledger.
A natural bridging currency
XRP has low friction, can not be debased, and has no counter party risk. Market makers may use XRP to make a profit providing inter-gateway liquidity at a spread.