The ongoing discussion regarding the distinctions between XRP and Bitcoin has resurfaced, with Ripple’s Chief Technology Officer, David Schwartz, rejecting comparisons based on misleading supply data.
These comments were made in response to assertions that Bitcoin’s limited supply offers it an advantage over XRP, igniting a broader dialogue on the criteria for evaluating cryptocurrencies.
XRP vs. Bitcoin: The Supply Debate
The conversation intensified when an XRP supporter pointed out that Ripple executives, including CEO Brad Garlinghouse and CTO David Schwartz, have never explicitly encouraged people to purchase XRP—contrary to Bitcoin advocates like MicroStrategy’s Michael Saylor, who frequently promote Bitcoin as the superior store of value.
CryptoApostle emphasized Bitcoin’s scarcity as a significant advantage, but Ripple’s CTO David Schwartz countered that supply-based comparisons are misleading. Source: CryptoApostle via X
A crypto analyst known as CryptoApostle highlighted Bitcoin’s capped supply of 21 million coins against XRP’s 100 billion tokens. He argued that this fundamental difference necessitates promoting Bitcoin, insinuating that XRP lacks such limitations. This perspective generally posits that Bitcoin’s finite supply upholds its status as “digital gold,” while XRP’s greater supply creates a perception of lower scarcity.
Schwartz Challenges Inaccurate Comparisons
Schwartz refuted this rationale, asserting that evaluating cryptocurrencies based solely on supply or unit price is misguided. He illustrated that assessing assets by “full coins” without accounting for market capitalization, divisibility, or total utility distorts their true value.
Schwartz dismissed comparisons between XRP and Bitcoin based on supply as misleading without considering units. Source: X
“It’s inappropriate to compare prices per ‘one coin’ for the same reasons we shouldn’t compare supplies measured in ‘number of coins,’” Schwartz explained, likening such measures to comparing distances in inches versus miles. He highlighted that breaking XRP into smaller units—known as drops—provides comparable functionality to Bitcoin’s satoshis, rendering supply as a unit an ineffective benchmark for value.
CryptoApostle, however, contended that retail investors typically think in terms of whole coins rather than subunits like satoshis or drops. He also mentioned that although Ripple executives do not overtly advocate for XRP, the company’s collaborations with banks and financial institutions serve as an indirect promotional strategy.
Debunking the “Cheaper Coin” Fallacy
One major point Schwartz raised was the tendency for some investors to view XRP as a “better investment” merely because it is cheaper per unit than Bitcoin. He argued that such thinking overlooks the comprehensive economic factors that influence an asset’s authentic value.
David Schwartz criticized price comparisons between XRP and Bitcoin, claiming they are misleading and misinformative. Source: JoelKatz via X
Market capitalization—the cumulative value of all coins in circulation—provides a more stable measure for assessing a cryptocurrency’s worth. However, many new investors focus solely on price per coin comparisons, neglecting total supply considerations. Schwartz has consistently warned against such superficial assessments, urging prospective buyers to consider deeper metrics.
XRP’s Position in the Crypto Landscape
The discourse surrounding XRP’s valuation occurs amid significant developments. Ripple’s ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC) have injected regulatory ambiguity into XRP’s future, impacting investor sentiment.
In addition, speculation regarding a possible XRP exchange-traded fund (ETF) has gained momentum, especially as the SEC reassesses its position on crypto-related financial products. An approved ETF for XRP could further solidify its status as a mainstream digital asset, potentially changing the narrative about its scarcity compared to Bitcoin.
At the time of writing, XRP traded around $2.55, reflecting a decline of 1.21% in the last 24 hours. Source: XRP Liquid Index (XRPLX) via Brave New Coin
Simultaneously, XRP’s price has experienced fluctuations. Following a recent downturn, XRP rose above $2.50 but continues to face challenges amid broader market trends. Analysts believe its future performance heavily relies on regulatory clarity and forthcoming decisions from the SEC.
The Greater Perspective
Schwartz’s recent comments underscore a crucial lesson for the cryptocurrency sphere: simplistic evaluations among digital assets can be deceptive. Investors assessing XRP, Bitcoin, or any other cryptocurrency should weigh market capitalization, divisibility, use cases, and network utility rather than solely focusing on supply figures or coin price.
As the cryptocurrency industry evolves, dialogues like these stress the significance of informed decision-making. While Bitcoin and Ripple’s XRP fulfill different roles within the financial ecosystem, their intrinsic value should be gauged by real-world acceptance and market fundamentals rather than arbitrary comparisons based on units. For investors weighing their options, Bitcoin remains a more secure choice due to its established reputation as a store of value, enhanced by institutional adoption through multiple Bitcoin ETFs. Conversely, XRP may present more significant upside potential—especially if XRP spot ETFs gain approval or if legislative support enhances Ripple’s “made-in-America” standing. Savvy investors may consider holding both assets.
Watch – XRP Price Analysis Video
