An X user has raised doubts about the concept of “gradual appreciation” in relation to XRP and argues that it does not compare to projects like Bitcoin, which are favored by speculators.
David Schwartz, the CTO of Ripple Labs, has responded to this skepticism surrounding the steady rise of XRP. In response to the user’s concerns about the “gradual appreciation” tag, Schwartz pointed to a 12-year chart of Bitcoin, illustrating how the digital asset has appreciated gradually over a long period of time.
The user, known as Mr. Huber, argues that XRP does not appear to appreciate over time compared to speculative projects. He explains that the only price increase that XRP has been able to sustain was not gradual. In contrast, he argues 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, explaining that alternatives such as Automated Market Makers (AMMs) and staking are considered for long-term holding. He also notes 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 explains that when evaluating alternatives like AMMs or staking, he considers them as options for long-term holding, which result in gradual appreciation. However, he acknowledges that during bull or bear markets, it may not feel like gradual appreciation, and there is no guarantee that any particular asset will follow this pattern in the future.
Recently, the introduction of AMMs on the XRP Ledger (XRPL) was reported, offering passive income opportunities to XRP holders by providing liquidity to pools. However, the reactions to this development have been mostly discouraging. In response to a user’s question about the benefits of AMM after reading negative posts on social media, Schwartz explains that people are always looking for riskier projects with the hope of higher returns. He highlights that AMMs allow investors to turn the volatility of digital assets into yield, reduce risk, and make markets, but they are not meant to be excessively risky.
Currently, XRP is up by 2.9% in the last 24 hours, trading at $0.61. However, its 24-hour trading volume has declined by 31%, totaling $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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