Ripple’s Chief Technology Officer, David Schwartz, is standing firm on his belief that XRP cannot remain at a low price, stating that it signifies higher liquidity and more efficient payments.
The current low price of XRP continues to be a major topic of discussion in the cryptocurrency community, drawing comments from Schwartz and other industry experts. Recently, XRP plummeted to $0.39, its lowest point in 16 months, following the downward trend of the broader market.
Just last month, XRP was trading above $0.53. However, on June 5, it fell below $0.4, prompting a community member to recall Schwartz’s statement from 2017, where he argued that XRP cannot be “dirt cheap.”
Interestingly, when Schwartz made this statement, XRP was in the early stages of a bull market that eventually reached an all-time high of $3.84 a few weeks later. However, XRP has since lost about 90% of its value.
In light of this, a community member recently asked Schwartz for an updated opinion on his previous comment about XRP’s low price. Rather than addressing the current value of XRP, Schwartz reiterated the essence of his original statement. He emphasized that it costs $1 to purchase enough XRP tokens to make a $1 payment.
However, some community members, seeking a direct response to XRP’s low price, accused Schwartz of avoiding the main issue. In response, Schwartz maintained that his statement had not deviated and explained that his original point still holds true.
In his 2017 commentary, Schwartz illustrated that if XRP costs $1, an entity would need one 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 also highlighted that higher prices facilitate cheaper payments by ensuring sufficient market liquidity, which requires fewer tokens for transactions. Conversely, lower prices would necessitate more coins, which could have an impact on the market.
Ultimately, Schwartz stressed that this concept has not deviated and serves as the foundation for his belief that XRP cannot remain at a low price. In a separate discussion on Reddit six years ago, Schwartz explicitly mentioned that higher XRP prices usually correlate with increased liquidity, resulting in more affordable payments.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are those of the author and do not necessarily 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.