A resurfaced comment from David Schwartz, Ripple's CTO, regarding high XRP prices has drawn renewed attention. The discussion of his views and the possibilities of high cryptocurrency prices has become relevant following a tweet from crypto investor XRP Governor.
Prospects of High XRP Value
The tweet from XRP Governor references Schwartz's Quora answer, where he argues that a high market price for XRP would facilitate its use in large payments rather than hinder its adoption. This statement raises interest in the potential for XRP to reach high valuations.
Arguments on Liquidity and Transaction Efficiency
Schwartz noted that the likelihood of high prices deterring adoption overlooks a critical factor: higher prices typically indicate greater market liquidity, making large payments easier and cheaper. He used Bitcoin as an example to illustrate how low prices could complicate large transactions. At high values, one could execute a $1 million property purchase using fewer assets, reducing market impact.
The Role of XRP in Large Payments
By emphasizing the potential for high XRP prices, XRP Governor highlights that Schwartz's views support the likelihood of XRP achieving high valuations for global transactions. The assertion that $1 million per XRP could be more practical than $1 reinforces the idea that XRP's usage in the global market is not only feasible but necessary for its acceptance.
In conclusion, the statement from Ripple's CTO raises important questions about market liquidity and the potential for XRP to be used for large transactions. Schwartz's key arguments on high XRP prices open new horizons for discussions on its practical applications in the financial world.
