An X user has raised doubts about the “gradual appreciation” theory of XRP and argues that it does not measure up to projects like Bitcoin that are favored by speculation.
Ripple’s CTO, David Schwartz, has responded to this skepticism surrounding the steady rise of XRP. In his response to the X user, Schwartz pointed to a 12-year chart of Bitcoin that demonstrates how the digital asset has appreciated gradually over a long period of time.
The user, Mr. Huber, argues that XRP does not appear to appreciate over time compared to speculative projects. He explains that the asset has only experienced one significant price increase that was not gradual. In contrast, he claims that Bitcoin has the ability to appreciate gradually more than XRP. Mr. Huber also refers to a previous post covered by Crypto News Flash, where Schwartz emphasized that he does not view XRP as a speculative gamble but rather as a volatile asset with potential for gradual appreciation. Mr. Huber questions the difference between the two.
Schwartz addresses the concerns surrounding XRP and gradual appreciation. He explains that alternatives like Automated Market Maker (AMM) and staking are evaluated as options for long-term holding. He also states that moments of bull or bear markets do not represent long-term gradual appreciation.
Schwartz presents a chart of Bitcoin over the past 12 years on a log scale to illustrate the long-term behavior of gradual appreciation. He acknowledges that in the moment of a bull or bear market, it may not feel like long-term gradual appreciation. However, he also notes that there is no guarantee that any particular asset will exhibit this behavior in the future.
Recently, it was reported that XRP Ledger (XRPL) is introducing AMM, which offers passive income to XRP holders by providing liquidity to pools. However, the reactions to this development have been largely discouraging. In response, a user asks Schwartz if AMM would still benefit anyone considering the negative posts on social media.
Schwartz explains that people are always searching for riskier projects in the hope of higher returns. He states that digital assets are volatile, and AMMs allow individuals to capitalize on this volatility by generating yield and reducing the risk of losses due to long-term price decreases. He suggests that those who feel skeptical about AMMs may be looking for even riskier alternatives that promise even higher returns, but AMMs are not that.
Currently, XRP is up by 2.9% in the last 24 hours and is trading at $0.61. However, its 24-hour trading volume has decreased by 31% to a total figure of $1.6 billion. Despite this, pro-XRP lawyer Bill Morgan believes that there could be a new all-time high for XRP in 2024.
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