David Schwartz, Chief Technology Officer of Ripple, in a well-known tweet from 2017 expressed the need for XRP to have a high price for its effective use in international finance.
The Necessity of XRP's High Price
Schwartz noted: 'XRP cannot be cheap. If XRP costs $1, a million XRP would be needed for a $1 million transaction. If XRP costs a million dollars, only one XRP would be needed for the same amount.' This statement underscores that a high token price allows for more economical and efficient transactions.
Comparison with Other Cryptocurrencies
According to Schwartz, higher prices make transfers more affordable. He added: 'When Bitcoin was $300, moving it impacted the market significantly and was too expensive for practical use.' With increasing token value, large transfers become significantly easier and reduce network congestion.
XRP Market Updates
At the time of reporting, XRP is trading at $3.53, indicating growing interest from institutional investors. XRP prices are gradually recovering from previous dips and surpassing the previous record of $3.40. In recent weeks, large wallets have increased their holdings by over 2 billion XRP, indicating renewed belief in the asset's potential.
David Schwartz's message from 2017 remains relevant today. XRP must maintain a sufficiently high price to fulfill its core function in the global payment system.
