Ripple’s Chief Technology Officer, David Schwartz, affirms that the concept of XRP being inexpensive is not sustainable, as it implies greater liquidity and more efficient transactions.
The low price of XRP continues to generate discussions in the cryptocurrency community, attracting attention from industry leaders like Schwartz. Recently, XRP’s value plummeted to $0.39, reaching its lowest point in 16 months, following the downward trend of the broader market.
In contrast, just last month, XRP was trading above $0.53. With XRP falling below $0.4 on June 5th, a member of the community brought up Schwartz’s 2017 statement asserting that XRP could not be “dirt cheap.”
It is worth noting that when Schwartz made this statement, XRP was in the early stages of a bull market that eventually led to an all-time high of $3.84 a few weeks later. However, today, XRP has lost around 90% of its value.
In response to a query from a community member about his previous comment, Schwartz reiterated the essence of his original statement, rather than directly addressing XRP’s current value. He emphasized that it costs $1 to purchase enough XRP tokens to make a $1 payment.
However, some community members seeking a more direct response to XRP’s low price accused Schwartz of avoiding the main issue.
Schwartz, on the other hand, maintained that his statement had not deviated and explained that his original point still holds true. In his 2017 statement, he illustrated that if XRP costs $1, an entity would need a million XRP to make a $1 million payment. Similarly, if XRP were priced at one million dollars, they would only need one XRP for the same $1 million payment.
Schwartz further emphasized that higher prices enable cheaper transactions due to increased market liquidity, requiring fewer tokens. Conversely, lower prices would necessitate more coins, posing a challenge as it could impact the market.
Essentially, Schwartz emphasized that this concept had not deviated, serving as the basis for his statement that XRP cannot remain inexpensively priced. In a separate discussion on Reddit six years ago, Schwartz explicitly mentioned that higher XRP prices typically align with greater liquidity, resulting in more affordable transactions.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.