user1878: Are all XRPs worth the same amount, regardless of each gateway you use them at?
Suppose I have one gateway who is un trustworthy, or will depreciate in value.
Suppose I also have a gateway that is backed by vaults of gold and a fixed number of XRP
Finally suppose I have a gateway with an equal amount of gold, but a growing number of XRP (diluting share value).
Question

How does the value of XRP normalize across the markets?
Is this normalization part of a vetting process done by OpenCoin, to ensure quality gateways?
What happens to a gateway that has more XRP than gold it has? .. or becomes a bad actor who is untrustworthy (Madoff)?


user575: XRP is the base unit in Ripple. From Ripple's viewpoint, it doesn't have value, other things have value measured in it.
XRP is also the only thing in Ripple that actually exists and isn't just an IOU. As such it has nothing to do with gateways, trust or bad acting, and it definitely doesn't imply any gold backing. You can have XRP in your wallet and they are what they are, and they are fungible with each other.
On the other hand, a BTC IOU from a gateway might be worth more or less (measured in XRP) depending on how trustworthy the gateway is. But there is no built-in mechanism in Ripple to equalize the market, it's all about market forces and arbitrage bots that correct any unjustified gaps. Of course, these use Ripple's pathfinding and order matching functionality.

1878: <p>Are all XRPs worth the same amount, regardless of each gateway you use them at?</p>

<p>Suppose I have one gateway who is un trustworthy, or will depreciate in value.<br>
Suppose I also have a gateway that is backed by vaults of gold and a fixed number of XRP
Finally suppose I have a gateway with an equal amount of gold, but a growing number of XRP (diluting share value).</p>

<p><strong>Question</strong></p>

<ul>
<li><p>How does the value of XRP normalize across the markets?</p></li>
<li><p>Is this normalization part of a vetting process done by OpenCoin, to ensure quality gateways?</p></li>
<li><p>What happens to a gateway that has more XRP than gold it has? .. or becomes a bad actor who is untrustworthy (Madoff)?</p></li>
</ul>
 575: <p>XRP is the base unit in Ripple. From Ripple's viewpoint, it doesn't have value, other things have value measured in it.</p>

<p>XRP is also the only thing in Ripple that actually exists and isn't just an IOU. As such it has nothing to do with gateways, trust or bad acting, and it definitely doesn't imply any gold backing. You can have XRP in your wallet and they are what they are, and they are fungible with each other.</p>

<p>On the other hand, a BTC IOU from a gateway might be worth more or less (measured in XRP) depending on how trustworthy the gateway is. But there is no built-in mechanism in Ripple to equalize the market, it's all about market forces and arbitrage bots that correct any unjustified gaps. Of course, these use Ripple's pathfinding and order matching functionality.</p>
