$XRP In the world of digital assets, "cheap" is often seen as an entry point for retail investors. However, Ripple CTO David Schwartz (one of the original architects of the XRP Ledger) has doubled down on a counter-intuitive truth: For XRP to succeed in its mission, it simply cannot remain "dirt cheap."
This clarification resurfaced after an X user dug up Schwartz’s comments from 2017, sparking a fresh debate on the relationship between asset price and payment efficiency.
The "Expensive" Paradox of Low Prices
Schwartz’s argument isn't about hype; it’s about mathematics and liquidity. He explains that a lower unit price for XRP actually makes it more expensive to use for large-scale cross-border payments. Here’s why:
Transaction Volume: If you want to move $1 million and XRP is priced at $1.00, you need 1 million tokens. If XRP is $0.01, you need 100 million tokens.
The Slippage Wall: Moving 100 million tokens in a single go creates massive "price slippage," driving up the cost of the exchange.
The Utility Ceiling: Low prices limit the "size" of the payments the network can handle smoothly. For XRP to act as a global bridge currency for banks, it requires a high enough market cap to absorb multi-million dollar transfers without breaking a sweat.
A Vision Reconfirmed
By revisiting his 2017 remarks, Schwartz is reminding the community that XRP was designed for utility first. The goal isn't just to be a low-cost asset, but to be a highly liquid, high-value tool that makes moving money across borders cheaper than the traditional SWIFT system.
Key Takeaway: Higher prices don't just benefit "HODLers"—they are a technical requirement for XRP to function as the ultimate global settlement layer.
Quick Comparison: Low Price vs. High Price Utility
Feature Low XRP Price High XRP Price
Transaction Capacity Limited to small retail transfers Capable of institutional-grade settlement
Market Liquidity Often lower, leading to high slippage Deep liquidity, lower transaction costs
Use Case Speculative asset Global Bridge Currency
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