David Schwartz explains why XRP is a good investment
Schwartz’s remarks signal optimism for XRP’s role
David Schwartz, Ripple’s Chief Technology Officer and one of the architects behind the XRP Ledger, has shared insights on why XRP continues to be a valuable investment.
In a post to X, Schwartz emphasized XRP’s critical role in enabling seamless liquidity, which allows it to serve as a bridge asset for buyers and sellers across the globe.
According to Schwartz, XRP’s value lies in its ability to provide liquidity to markets where fiat currencies are in demand. He explained that when users need to exchange fiat for XRP or vice versa, someone holding XRP becomes an essential part of the transaction flow. This liquidity ensures that markets remain efficient, supporting XRP’s functionality within the financial ecosystem.
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Matching buyers and sellers
Schwartz highlighted that XRP’s strength as an investment comes from its role as a bridge currency. It facilitates transactions by connecting those who need to buy XRP with those who hold it, ensuring quick and cost-effective transfers. “If people are constantly trying to buy XRP for fiat, if you hold XRP, you can sell it to whoever needs it the most,” Schwartz explained.
The CTO further noted that while individuals may not be required to hold XRP directly, its utility hinges on the availability of market participants who are willing to buy, sell, and hold the asset. This dynamic liquidity model ensures XRP’s continued relevance as a medium of exchange and settlement asset.
Future outlook for XRP
Schwartz’s comments come amid ongoing debates over XRP’s long-term value and utility within the cryptocurrency market. By reinforcing its importance as a liquidity tool, he seeks to highlight XRP’s practical benefits over speculative concerns. For Ripple and its supporters, XRP’s real-world utility as a bridge asset positions it uniquely within the evolving financial landscape.
Schwartz’s remarks signal optimism for XRP’s role in facilitating global payments. As digital asset adoption grows, XRP’s ability to match buyers and sellers efficiently could solidify its position in the broader crypto ecosystem.
Earlier, Ripple CTO warns against RLUSD speculation amid market hype.
