As a seasoned financial analyst with over two decades of experience in the ever-evolving world of fintech and cryptocurrencies, I find Ripple CTO David Schwartz’s recent insights both enlightening and thought-provoking. His perspective on XRP‘s role in payments is particularly intriguing, as it offers a unique blend of technical understanding and pragmatic realism.
Lately, the Chief Technology Officer (CTO) of Ripple posted some thoughts about the role of cryptocurrencies like XRP in transactions, offering insights into their value within the payment system.
To a user X, Schwartz stated that most cryptos aren’t typically employed for transactions. However, XRP stands out with its broad accessibility, ranking among the top five in market capitalization, low transaction fees, and rapid confirmations. Despite this, Ripple’s Chief Technology Officer suggests that the underutilization of XRP for payments is similar to other cryptocurrencies due to shared reasons.
According to the report, Schwartz suggested that high prices for XRP could actually make transactions more expensive. In simpler terms, if each XRP costs $1, you’d need a million of them to make a payment, totaling $1 million. On the other hand, if one XRP cost a million dollars, you’d still need only one XRP for the transaction, but it would also equate to $1 million in cost.
In a different discussion, the Chief Technology Officer of Ripple explained his point by stating: “This won’t reduce the cost of your transactions. Instead, it means that when you exchange the equivalent value in XRP, the market movement works against you, thereby increasing the overall expense of the transaction.
Schwartz continued by outlining the hurdles associated with using stablecoins for transactions. Essentially, there are two categories of individuals who make transactions: those integrated into current financial structures and those not, suggesting that stablecoins may encounter the same difficulties as cryptocurrencies when it comes to gaining acceptance in payment systems.
Ripple CTO debunks XRP price manipulation
Concerning the fluctuations in the value of XRP, the Chief Technology Officer of Ripple addressed allegations of price manipulation by stating: “We couldn’t detect any evidence that our actions influence the price of XRP. Intriguingly, over a span of 8 years, the prices of both XRP and XLM have shown an unusual correlation.
Schwartz also responded to a user who expressed concerns about the distribution of XRP and suggested that Ripple should offer more assistance to XRPL developers: “I’m always open to hearing ideas for how we can better help developers. Some people say the distribution is too centralized, while others complain there isn’t enough being distributed. The truth is, there aren’t many other alternatives.
At the time of writing, XRP was up 0.66% in the last 24 hours to $0.586.
Read More
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- CKB PREDICTION. CKB cryptocurrency
- USD COP PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- EUR ILS PREDICTION
- REF PREDICTION. REF cryptocurrency
- TROY PREDICTION. TROY cryptocurrency
- LBT PREDICTION. LBT cryptocurrency
2024-09-21 17:32