Steingraber's argument is predicated on the concept that banks should store XRP as a reserve asset, similar to how gold is now held. The possible transformation in how financial institutions see XRP is emphasized by the fact that he makes it clear that "Banks holding XRP, that's the Holy Grail." This modification would increase the status of the cryptocurrency, establishing it not just as a type of cryptocurrency that can be used for transactions but also as an asset that is fundamental to the functioning of banking operations.
Steingraber predicts a future in which financial institutions would develop private ledgers for their internal operations, which will need them to maintain considerable reserves of XRP. According to his explanation, "Banks will create a Private Ledger and HOLD XRP as a reserve asset in the same way that a central bank will hold gold as a backing asset." This method of utilizing XRP is analogous to the conventional banking system's dependence on gold, which suggests that there is a paradigm change occurring in the management of digital assets.
In addition to this, the theory emphasizes the significant function that liquidity hubs, such as Metaco, play in the emerging financial ecosystem. It is pointed out by Steingraber that in order to enable transactions between banks, these hubs would need to have substantial amounts of XRP in their possession. "The LHs also hold a balance of XRP because they are the third party exchange that requires a transfer on the XRPL of the issued IOU Derivative into another IOU Derivative," he observes, highlighting the significance of XRP in this process. "The LHs are the third party exchange to hold a balance of XRP."
One of the most important aspects of Steingraber's argument is the subsequent shortage of XRP in the public market as a result of money being accumulated by banks. He makes a prediction that there will be a big change in the public supply, noting, "The public quantity of XRP that is circulating on cryptocurrency exchanges is far smaller than people realize... "The banks are going to come for the public supply of XRP when they are ready, and once they have it, it will be gone forever." It is believed that this anticipated scarcity would cause financial institutions to experience fear of missing out (FOMO), which will result in a quick depletion of XRP's availability to the general public.
Steingraber's thesis culminates in the forecast of a significant increase in the price of XRP. This increase is driven by the combined impacts of banks using it as a reserve asset, the establishment of private ledgers, the critical role of liquidity hubs, and the public supply shortage that results from all of these factors. He envisions a future in which the value of the cryptocurrency may explode as a result of these causes, with the possibility of reaching a sum of twenty thousand dollars.
