Ripple CTO Clarifies XRP’s Value Dynamics and Dispels Rumors

In a recent discussion, Chief Technology Officer (CTO) David Schwartz clarified misconceptions regarding the value and liquidity of XRP, the digital asset utilized in Ripple’s payment solutions. The conversation, held on Monday, offered insights into how XRP’s price relates to its effectiveness for high-value transactions.

Schwartz tackled the ongoing debate about whether financial institutions would favor a lower XRP price to enhance transaction processes. He dismissed this notion as an overstatement, explaining that higher prices often lead to greater liquidity, which results in lower costs for payments. He compared this scenario to Bitcoin’s price trajectory: as Bitcoin’s value surged past the $10,000 mark, its vulnerability to price fluctuations during substantial transactions decreased, as a smaller portion of total assets was required for significant transfers.

By drawing parallels with XRP, he pointed out that an increasing XRP price would establish it as a more effective medium for high-value transactions within Ripple’s payment solutions. At the time of this report, XRP was trading at approximately $0.4952.

In addition to this discussion, Schwartz has actively engaged with the community, addressing various inquiries related to XRP. When confronted with a suggestion on social media that XRP could disproportionately benefit the wealthiest individuals, Schwartz questioned the meaning behind “the top 1%.” He emphasized that XRP provides access to anyone who wishes to utilize the ledger for tracking asset ownership and exchanges.

Schwartz also addressed rumors about the Department of Homeland Security’s capability to ‘hack’ XRP, refuting these claims by stating that hacking XRP would be illogical, considering the public knowledge of the ledger’s contents and rules. He assured that any vulnerabilities would be swiftly resolved, thereby preventing repeated hacking attempts using the same method.

Lastly, when asked about a potential connection between an old patent of his and the architectural design of XRP, Schwartz dismissed the idea, stating that the patent had largely become irrelevant.