- David Schwartz believes XRP’s utility cost will decrease when the token’s price rises.
- There is a prevailing bullish sentiment across XRP’s community members.
- XRP’s bullish appeal appears to be more about functionality than mere prediction.
Former Ripple CTO David Schwartz has made a statement that got the XRP community buzzing about the cryptocurrency’s price dynamics. Schwartz’s comment was in response to a community member seeking an explanation for his 2017 opinion about XRP’s price, in relation to how the altcoin has developed.
A Post From the Past
In 2017, Schwartz criticized crypto community members for saying that XRP was “dirt cheap.” Back then, he stated that it makes no difference whether XRP costs $1 or $1 million, since the token’s utility would remain the same and the cost of using it would be constant.
As for the latest clarification, Schwartz maintained that, other things being equal, the higher the price of XRP, the cheaper it would be to use it for payments. Several XRP community members responding to the same post aligned with Schwartz’s position, highlighting why higher XRP prices would benefit the cryptocurrency and Ripple’s ecosystem.
An Elegant Bridge Currency Math
One such user described the situation as an elegant bridge currency math. The user cited examples that it could require a million XRP in the liquidity pool to move $1 million if XRP’s price were $1. Meanwhile, moving the same volume of XRP tokens would require only 100,000 XRP, assuming the cryptocurrency’s price were $10.
Responses from XRP community members suggested a prevailing bullish sentiment for the cryptocurrency. Many of them saw a potential rally in XRP’s price as a functional issue rather than a matter of prediction. They believe the cryptocurrency’s utility, as a token for facilitating transactions, positions it for increased adoption and an eventual price rally.
XRP’s Persistent Bullish Sentiment
It is worth noting that XRP users’ bullish sentiment is consistent with Schwartz’s position from nearly a decade ago, despite the cryptocurrency’s current bearish challenges. The altcoin is struggling with a persistent sideways trend bound within the $1.30 and $1.50 range. Despite temporary breakouts, the price has repeatedly returned within this region, suggesting ongoing accumulation.
Last year’s resolution of the court case between Ripple and the SEC introduced a new narrative for the cryptocurrency, and many users believe it will resume its upward trajectory as soon as prevailing geopolitical and macroeconomic factors affecting the global economy dissipate.
Related: XRP Price Prediction: Whale Accumulation Rises But Bears Defend $1.40
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Source: https://coinedition.com/david-schwartz-says-xrp-will-be-cheaper-for-payments-when-the-price-goes-higher/
