From dislike to hatred: Evolution of XRP-Bitcoin relations

Traders Union
All News
Editors' Picks
Evolution of XRP-Bitcoin relations

Strategic national reserve

Last week, U.S. President Donald Trump signed an executive order to implement several cryptocurrency initiatives that he had announced during his election campaign. Among them was the creation of a task force aimed not only at developing new regulatory policies for digital assets but also at exploring the possibility of establishing a national cryptocurrency reserve.

Yes, you heard that right—a cryptocurrency reserve, not just Bitcoin. While Trump had previously only mentioned Bitcoin in his campaign promises, his rhetoric changed just before his inauguration. A few days before the event, The New York Post reported that Trump wanted to create a national reserve consisting not only of BTC but also of other “American” cryptocurrencies, including Solana, USD Coin, and XRP.

Ripple Labs CEO Brad Garlinghouse welcomed the idea, emphasizing his support for a level playing field: "If a government digital asset reserve is created, I believe it should represent the entire industry, not just one coin."

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Bitcoin community’s reaction

The Bitcoin community reacted harshly to this news, calling Trump's idea a “huge mistake.” Riot Platforms Vice President Pierre Rochard accused Ripple of aggressively lobbying for XRP's inclusion in the U.S. national reserves: "Ripple is paying millions to politicians to derail the creation of a Bitcoin reserve."

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Jack P. Richardson, co-founder of Exodus, a popular cryptocurrency wallet, also spoke out against XRP. While he doesn’t consider himself a Bitcoin maximalist, he stated that BTC is the only asset he trusts due to its decentralization and independence.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Meanwhile, well-known crypto analyst Willy Woo believes that adding XRP to the national reserve would render it meaningless, as no other country would want to hold XRP instead of Bitcoin.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

This sentiment is widely shared among Bitcoin supporters. Many believe that XRP is not a true cryptocurrency. Ripple, on the other hand, has repeatedly attempted to discredit Bitcoin’s reputation and has even advocated for its ban in the past. Now, a similar scenario is unfolding again.

Ripple’s revenge

In response to the criticism, Ripple launched a memecoin Bitcoin Maxi Tears (BMT), mocking Bitcoin maximalists. The company’s leadership reinforced the move with a statement:"The attacks from BTC maximalists against XRP have brought many good things: a more united community and a few hilarious memes."

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

However, this move pales in comparison to Ripple’s past actions. In March 2022, Ripple co-founder Chris Larsen donated $5 million to Greenpeace to launch a campaign against Bitcoin. The environmental organization used the funds to promote the narrative that Bitcoin is harmful to the environment.

But whether due to Trump’s pro-crypto stance or simply because Greenpeace ran out of funds, the organization abandoned the campaign at the end of 2024, ceasing its criticism of Bitcoin.

This example highlights the ongoing conflict between Bitcoin and XRP, but why is the Bitcoin community so categorical in its stance against Ripple?

Only one can remain

The Bitcoin community has long criticized XRP, seeing it as a centralized asset that contradicts the very concept of decentralized digital money. Unlike Bitcoin, which has no single point of failure, XRP is controlled by Ripple, making it dependent on corporate decisions. This raises concerns among Bitcoin advocates, as Ripple can influence the network’s development, freeze funds, and change policies at will. Additionally, a significant portion of all XRP remains under Ripple’s control, leading to fears of price manipulation and a reliance on corporate actions.

Another major issue with XRP is its issuance model. Unlike Bitcoin, where new coins are mined through a decentralized proof-of-work mechanism, XRP was pre-mined in full, and its distribution was handled centrally. Moreover, Ripple unlocks 1 billion XRP from its escrow accounts every month, making it functionally similar to central bank digital currencies (CBDCs), which are also issued by centralized authorities and subject to regulatory control.

The Bitcoin community fears that such a model undermines the core principles of decentralization and financial sovereignty, making XRP resemble a traditional financial instrument rather than an independent cryptocurrency.

This is why Trump’s proposal to add XRP to the "national Bitcoin reserve" is seen as unacceptable within the Bitcoin community. If it goes through, those who once helped Trump win the election may quickly become his biggest critics.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.