An X user has raised doubts about the concept of “gradual appreciation” in relation to XRP, stating that it is not comparable to projects like Bitcoin, which are favored for speculation. Ripple’s CTO, David Schwartz, has responded to this skepticism by pointing to a 12-year chart of Bitcoin that demonstrates its gradual appreciation over time.
The user, Mr. Huber, argues that XRP does not exhibit the same gradual appreciation as other speculative projects. He points out that the asset has only experienced one significant price increase, which was not gradual. In contrast, he highlights Bitcoin’s ability to appreciate gradually. Mr. Huber refers to a previous post covered by Crypto News Flash, where Schwartz emphasized that he sees XRP as a volatile asset with potential for gradual appreciation, rather than a speculative gamble. Mr. Huber questions the difference between the two.
Schwartz addresses the concerns surrounding XRP and gradual appreciation by explaining that alternatives such as Automated Market Makers (AMMs) and staking are evaluated for long-term holding. He also states that moments of bull or bear markets do not represent long-term gradual appreciation. He presents a chart of Bitcoin’s performance over the past 12 years to illustrate the concept of gradual appreciation. However, he acknowledges that there is no guarantee that any particular asset will follow the same pattern in the future.
Recently, it was reported that XRP Ledger (XRPL) is introducing AMM, which offers passive income opportunities to XRP holders through liquidity provision to pools. However, the reactions to this development have been largely negative. In response to a user’s question about the benefits of AMM, Schwartz explains that people are always seeking riskier projects with the potential for higher returns. He highlights that AMMs allow individuals to turn the volatility of digital assets into yield and reduce the risk of losses due to long-term price decreases. However, he clarifies that AMMs are not for those seeking extremely high returns.
Currently, XRP is trading at $0.61, with a 2.9% increase in the last 24 hours. However, its 24-hour trading volume has declined by 31% to $1.6 billion. Despite this, pro-XRP lawyer Bill Morgan believes that there is the potential for a new all-time high in 2024.
In conclusion, XRP’s gradual appreciation is a topic of debate among users, with some questioning its performance compared to projects like Bitcoin. Ripple’s CTO, David Schwartz, has addressed these concerns by providing insights into the concept of gradual appreciation and discussing the potential benefits of alternatives such as AMMs.