Post
Topic
Board Altcoin Discussion
Re: Why has Ripple decreased so much in Market cap? Used to be second to Bitcoin
by
~Coinseeker~
on 18/04/2014, 19:09:15 UTC
That's exactly what he's talking and why Ripple is intriguing.  Currently to send money across distances you need a clearing house.  You are correct that Hawala does this without a clearing house & Ripple is a digital version of Hawala.

The reason why you want this is because people use different local currencies.  If my Chinese supplier only accept RMB as payment and if I want to use BTC how can the transfer take place?  Either there is a clearing house that takes my BTC and gives him RMB or something like Ripple.

+1 I had a whole post typed out but I honestly couldn't say it much better than that.  I will add, if your making a BTC -> BTC payment, you don't need Ripple.  Just send wallet to wallet.  What reality is showing though, is most merchants don't accept BTC, they accept USD and they require a middleman or central clearing house, to facilitate that transaction.  In this case, BitPay and Coinbase.