In a recent social media discussion, Ripple’s CTO, David Schwartz, revealed that he holds XRP and expressed a desire to see its price increase. When a user mentioned that XRP is still relatively inexpensive after seven years, Schwartz emphasized that the concept of XRP being ‘dirt cheap’ doesn’t hold up logically. He explained that the cost of XRP is directly proportional to the amount needed for a transaction, regardless of its price per unit.
Schwartz further highlighted that a lower XRP price can actually make transactions more costly, drawing a parallel to Bitcoin’s evolution. As Bitcoin’s value surged, making large purchases with it became more practical. Similarly, a low XRP price hinders efficiency in payments, particularly from an institutional standpoint.
Addressing the use of cryptocurrencies like XRP for payments, Schwartz noted that despite XRP’s widespread availability, high market ranking, low fees, and fast transaction speeds, it is still underutilized in actual transactions. He attributed this phenomenon to similar barriers preventing other cryptocurrencies from gaining traction in payment systems.
Schwartz’s insights shed light on the complexities of cryptocurrency pricing and usage in real-world scenarios, emphasizing the importance of understanding these dynamics for crypto enthusiasts and industry professionals alike.
