cryptonewsflash

Former Ripple CTO David Schwartz claims blockchain systems may work better without incentives, arguing against reward-based models.
Schwartz believes incentives like mining and staking introduce unnecessary costs and misaligned interests. According to him, users already have a natural motivation to keep systems working, and removing artificial rewards can lead to cheaper and fairer blockchain networks.
Key Points
David Schwartz recently revisited a March 2020 talk based on ideas he first developed in 2012.He said blockchains need agreement on transaction order, not costly incentives, to solve the double-spend problem.According to him, mining and staking make participants seek higher rewards when users want lower fees.Incentive systems drive centralization, as participants with lower costs or higher capital gain dominance.The XRP Ledger removes incentives, relying on simple rules and user interest to maintain fairness and low costs.
Solving the Double-Spend Problem
Notably, Schwartz discussed these ideas during a March 2020 presentation, which he recently revisited, imploring the crypto community to watch. In that talk, he explained that blockchain systems may work better when they remove artificial incentives entirely.
His argument centered around the need to solve the double-spend problem. Notably, for any network like Bitcoin to function, users must reach a point where everyone agrees that a transaction has happened. Without this shared agreement, people cannot safely exchange goods or services for digital assets.
Schwartz pointed out that blockchains already have three important features: a public record of all data, clear rules for what makes a transaction valid, and a shared understanding of what each transaction does.
However, he said these are not enough on their own, especially when there are multiple valid ways to move forward, such as sending the same asset to different people.
Natural and Artificial Stakeholders
Speaking further, the former Ripple CTO suggested that blockchain ecosystems have two types of stakeholders: the natural and forced ones.
According to him, natural stakeholders are users who depend on the system for real needs, such as making payments or storing value. Forced stakeholders, like miners, exist only because the system design requires them.
He argued that forced stakeholders take value from natural users, creating extra cost in the system. For example, Bitcoin miners earn rewards and fees, but the money comes from users who want their transactions processed. This creates a conflict: users want low fees, while miners benefit from higher ones.
He compared this to platforms like eBay, where the company charges fees to buyers and sellers. To him, blockchain systems were meant to reduce this kind of friction, not repeat it in a different form.
The Cost of Proof of Work
Building on this premise, Schwartz raised concerns about proof-of-work systems, especially their high cost. He explained that Bitcoin needs to generate millions of dollars every day just to keep mining running, which ties the network’s security to its market value.
According to him, honest participants must spend more to protect the system than attackers might need to break it. He sees this as a weakness. Schwartz also noted that much of this money leaves the ecosystem and goes to electricity providers and hardware makers.
He added that mining creates a “race to the bottom,” where miners must cut costs to survive. This pushes them to focus on short-term profit instead of improving the network. Over time, mining also becomes concentrated in areas with cheap power, which weakens decentralization.
Staking and Similar Incentive Models
Schwartz also questioned staking and slashing systems, which networks like Ethereum have explored. He said locking up a volatile asset comes with risk, so participants expect high rewards in return. This limits how much cheaper these systems can be compared to proof of work.
He pointed out that staking depends on native tokens, and this creates challenges for networks that handle large amounts of other assets, such as ERC20 tokens. Just like mining, staking can lead to competition that pushes the system toward centralization.
He also mentioned tax issues, since some countries treat staking rewards as income. Notably, this adds another cost for users and supports his view that incentive-based systems place extra burdens on participants.
The XRP Ledger Approach
Pointing out the decisions made in 2012, Schwartz explained how the XRP Ledger takes a different path. Specifically, it reduces the power of any single participant and removes features like transaction reordering that could be abused.
Instead, the system uses rules to decide which transactions to include and focuses on simply agreeing on their order. Schwartz said this process does not need expensive incentives because users already want the system to work properly.
He also explained that the XRP network limits the influence of bad actors and allows users to ignore them without losing anything. Since no one can profit from controlling the system, there is less reason to try to attack it.
Why “No Incentive” May Work Better
Schwartz concluded that artificial incentives bring more problems than benefits. Specifically, they can lead to centralization, create conflicts of interest, and increase costs for users.
On the other hand, systems based on natural incentives rely on users who already want the network to succeed. He called attention to Bitcoin full nodes as an example, where people support the network without direct payment.
He believes networks can offer lower fees, faster transactions, and better fairness by just removing incentives. In the end, he argued that users want systems that are reliable and affordable, not ones plagued by competition for rewards.
#CryptoNewsFlash

#XRP currently trades within two Elliott Wave structures, and its ultimate price target would depend on which structure it actually follows.
This comes as the XRP price recovers above the $1.45 amid a broader market-wide upward push. Notably, after dropping to $1.34 on April 29, XRP engineered a rebound push which has since taken the price to $1.455 at press time, hinting at possible further upside to new highs.
Key Points
XRP has recovered more than 8% from the April 29 lows of $1.34, now on an upward path.In this upward path, XRP trades within two distinct Elliott Wave structures on the weekly chart. XRP’s ultimate target in the upward path depends heavily on which of the Elliott Wave structures it eventually follows.The first structure began in June 2022, and Wave 5 could end during this cycle at $14.The second structure started in late 2024, and Wave 5 could conclude years later at $42.
XRP Within Two Elliott Wave Structures Amid Recovery
CryptoInsightUK, a well-known market technician, discussed XRP’s current position in a recent analysis on the back of the latest recovery push. Specifically, the XRP price has rebounded alongside the broader crypto market, which has added $200 billion in market cap since the April lows.
Riding on this wave, XRP has reclaimed the $1.45 mark, up 8.2% from the April 29 low of $1.34. Due to this uptrend, XRP recorded a 6.13% gain last week, marking its largest weekly rise in two months. Despite a mild 1.08% pullback this new week, XRP has maintained the $1.45 mark, currently trading for $1.4573.
Interestingly, CryptoInsightUK’s chart shows that, amid the uptrend, XRP currently trades within two different Elliott Wave structures. According to him, there is the possibility that either of the two structures would guide XRP’s price action. However, uncertainty remains.
XRP Targets for Each Structure
For context, the first Elliott Wave structure began after XRP started recovering from the 2022 bear market lows in June of that year.
Specifically, Wave 1 ended when XRP hit a high of $0.93 in July 2023, while Wave 2 concluded at a low of $0.3834 in July 2024. Meanwhile, Wave 3 pushed prices to $2.9 by December 2024, and Wave 4 resulted in a pullback to the current position.
If XRP follows this structure, it is on the verge of entering an impulsive Wave 5 upsurge once the current Wave 4 concludes. Data from the chart shows that this Wave 5 could take XRP to a range of $12 to $14.5, marking the end of the structure.
However, the second structure began when XRP rallied from $0.5 in November 2024 to $3.4 by January 2025. This upsurge marked Wave 1. Meanwhile, Wave 2 began as XRP corrected from the $3.4 peak and has continued till now.
If XRP is following the second structure, then the anticipated recovery from the current correction would mark its Wave 3 push, potentially leading to $14. However, after this, XRP could pull back during Wave 4 to just above $5 before rebounding toward $42 in Wave 5.
Essentially, for the short term, XRP could target $12 to $14 either in Wave 3 or Wave 5, depending on the structure it follows. As a result, CryptoInsightUK confirmed he would likely reduce his exposure once XRP hits the $8 to $12 range.
#CryptoNewsFlash

#Bitcoin is entering what analysts describe as its first supercycle, with price action already following a structure that differs from past market cycles.
This narrative strengthened as Bitcoin (BTC) pushed past $81,000 in grand style, reclaiming levels last seen in late January. Renewed institutional activity via US Bitcoin spot ETFs and easing geopolitical tensions have played a major role in this rebound.
Still, analysts believe the premier crypto asset could go way higher than its current price.
Key Points
Prominent analyst Plan C highlighted that Bitcoin is about to enter its first supercycle.This cycle started in November 2022 and could extend to early 2028, with Bitcoin targeting $250,000.The current cycle is showing signs of a mild retracement, aligning with earlier events in 2020 and 2021.The outlook refers to the February 6 lows near $60,000 as the current cycle’s base.
Bitcoin Supercycle Narrative
Specifically, prominent analyst Plan C highlighted that Bitcoin is about to enter its first supercycle. In his X post, he noted that the target for this extended bullish phase is an unprecedented price of $250,000.
The analyst places the start of this cycle in November 2022, when Bitcoin formed a bear-market low near $16,000. Weak market conditions and the FTX implosion, spurred by founder Sam Bankman-Fried’s reported fraudulent activity, adversely impacted Bitcoin, pushing it to those lows.
As these pressures dwindled and a new market phase began, BTC recovered. From around sub $16,000, it rallied to a peak of $126,200 in October 2025. Plan C highlighted this current all-time high as the first major top within the current cycle.
After that rally, the asset corrected to roughly $60,000 in February 2026, which Plan C identifies as a mid-cycle bottom. His outlook aligns with Grayscale’s, referring to the February 6 lows as the current cycle’s base.
The analyst expects the next bull peak to be between late 2027 and early 2028, targeting $250,000. This move would mark a 207% growth from the current price of $81,350.
Current Cycle Aligns with Earlier Mild Correction Phases
Meanwhile, an accompanying chart shows that Bitcoin has experienced mild-cycle corrections, as it is in the current market phase. An example is the COVID-19 pandemic in 2020, which affected global markets, including digital assets. BTC dropped 57% before recovering to higher prices.
A similar event occurred in May 2021, during China’s ban on all mining activities. BTC dropped 55% from around $65,000 to $28,700 but again recovered to its November 2021 all-time high of $69,000.
These rapid declines created strong bearish narratives at the time, yet Bitcoin continued to move higher after each event. As such, the commentary suggests that these corrections did not break the long-term structure but instead reinforced it.
The current cycle is showing signs of a mild retracement, with BTC correcting 50% from last year’s high to the February lows before the current rebound. If it mirrors other scenarios, then it could rally further from here.
Bitcoin Outlook Reflects Structural Shift
Moreover, this cycle is different. Plan C noted that this would be Bitcoin’s first supercycle, marking a deviation from the typical 4-year cycle.
Rather than ending after each peak, BTC would build on previous gains while absorbing volatility along the way. According to him, this cycle started in November 2022. If it ends around 2028, as he projected, it will mark six bull years for BTC, with a mild mid-cycle retracement this year.
Several industry leaders had predicted this, citing the changing tides in the crypto sector amid institutional adoption. Binance’s Changpeng Zhao and Bernstein are among those who called this extended bull market run.
#CryptoNewsFlash

Bitcoin ($BTC) is showing clear signs of breaking out, climbing steadily over the past week and confirming bullish sentiment across the board. After weeks of consolidation, BTC$has moved from $57,200 to $62,430, gaining nearly +9.1% in just 7 days.
📈 7-Day Price Chart
Date Price ($)
Aug 1 57,200
Aug 2 58,350
Aug 3 57,800
Aug 4 59,020
Aug 5 60,200
Aug 6 61,250
Aug 7 62,430
🔥 Key Points
BTC has broken above key resistance at $60K
Institutional inflows are rising post-ETF accumulation
On-chain signals show increasing whale activity
RSI remains bullish but not overbought — room to run
Analysts are calling this the start of the "unbound phase", with targets set toward $65K and $70K if momentum holds. Volatility is expected, but the upside potential remains strong.
🎯 Support: $59,000
🎯 Resistance: $64,000
📊 Download Chart: BTC Price Chart
#BTCUnboundLegacy #Bitcoin #CryptoTrading #BitcoinTreasuryWatch #BTC #BullRun #CryptoMarket #Binance
#CryptoNewsFlash #OnChainData #BTCChart

The U.S. SEC recently issued its most comprehensive guidance to date on crypto exchange-traded products (ETPs).
Read more on: https://thecryptobasic.com/2025/07/07/sec-nears-streamlined-approval-for-xrp-solana-and-meme-coin-etfs-insiders-confirm/
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