XRP co-creator: ‘The higher the price, the cheaper to use’
“It cannot be dirt cheap,” explains XRP Ledger co-creator David Schwartz.
The co-creator of the XRP Ledger just explained why a rising XRP price serves the utility of the blockchain itself, not merely as a reward for speculators.
Famously conservative about price forecasts since he launched XRPL in June 2012, David Schwartz has repeatedly tried to explain why, on a technical basis, a more expensive XRP helps settle financial transfers and adds vast utility to the world’s financial system.
Market Context
Most people in crypto get this completely upside down. Settlements are actually faster, cheaper, and better with a more expensive XRP.
Schwartz is again re-explaining a simple truth he asserted all the way back in 2017.
His answer, in one sentence, has soared above years of noise as a piece of timeless wisdom.
“The higher the price of XRP, other things being equal, the cheaper it is to use it for payments.”
If you prefer a sentence of just five words, this is also a direct quote from Schwartz from November 20, 2017. Both have the same meaning.
“It can’t be dirt cheap.”
And yet, the replies proved that most people still do not understand what he is saying.
If you still don’t understand what Schwartz means, and why a higher XRP price creates cheaper value transfers for the trillions of dollars that could settle on the XRPL, join me in today’s XRP Premium Analysis.
News
Solana DeFi platform Drift tells users to halt deposits (Coindesk)
Russia approves national crypto framework (Gov.ru)
Texas Senate to study crypto, blockchain, prediction markets, and AI impact (Texas.gov)
DOJ charges Maryland man in $50M Uranium DeFi hack (Justice.gov)
Bitfarms $BITF FY’25: Revenue $10229M +72 y-o-y| Op Loss $150M | Loss from continuing ops $209M | aEBITDA $29M (GlobeNewswire)
Bit Digital $BTBT FY’25: Revenue $113M +5% y-o-y | Net Loss $80M | aEBITDA $24M (PRNewswire)
DeFi Technologies $DEFT preliminary FY’25: Revenue $99M | Income $62M | AUM $809M (PRNewswire)
Greeidge Generation $GREE FY’25: Revenue $58M -1% y-o-y | Op Loss $3M -67% y-o-y | Net Loss $5M | aEBITDA loss $2M (Greenidge)
Eightco $ORBS ORBS holdings 277,222 (PRNewswire)
S&P moves to tokenize iBoxx US Treasuries index (Kaiko)
Moody’s assigns A-1/A-2 provisional rating to New Hampshire bitcoin-backed bonds (Moodys)
Interactive Brokers $IBKR launches crypto trading in Europe (Businesswire)
Galaxy $GLXY rolls out Solana staking on GalaxyOne (PRNewswire)
Intellistake $ISTKF unveils STOx tokenized securities platform (PRNewswire)
BitGo launches institutional lending platform (Businesswire)
Bitget introduces fee-free crypto credit card (GlobeNewswire)
Chainalysis releases blockchain intelligence agents (Chainalysis)
Mercado Libre $MELI shuts down Mercado Coin (Reuters)
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XRP Premium Analysis
Let me walk you through exactly what Schwartz meant in 2017, why it still matters today, and why this is one of the most important things any XRP holder should internalize permanently.
Unlike US dollars, which always get cheaper over time due to inflation while settling more financial flows for lower fees, a rising real price of XRP is what helps the XRPL settle financial flows for lower fees.
XRP has, indeed, risen substantially in price since Schwartz both created the XRPL and explained in 2017 why its rising price is good for its utility.
So how, exactly, does USD get better at settlements at lower prices, while XRP gets better at settlements at higher prices?