Ripple CTO: XRP Could Flip Bitcoin, But Only Through Growth
In brief
- David Schwartz, Ripple CTO emeritus, says XRP could theoretically overtake Bitcoin by market cap.
- XRP flippening requires XRP growth driven by transaction speed and functionality, not Bitcoin weakness.
- Bitcoin's $1.58 trillion market cap currently sits 17.7x larger than XRP's $89.1 billion.
XRP's Technical Edge
Schwartz stressed that XRP could capture disproportionate growth because of characteristics like transaction speed and functionality compared to Bitcoin. The XRP Ledger was designed from the outset as a faster and more scalable alternative to Bitcoin for payments.
The comparison isn't theoretical. During the cryptocurrency rally of late 2017 and early 2018, XRP surged into second place. In late December 2017, XRP's market cap jumped to roughly $86 billion, briefly overtaking Ethereum's $73 billion.
The Math Today
At a price of $1.42, XRP has a market capitalization of approximately $89.1 billion, making it the fifth-largest cryptocurrency. Bitcoin, meanwhile, is trading at roughly $78,693 with a market capitalization of approximately $1.58 trillion.
Schwartz made a historical comparison. He recalled that $100 Bitcoin once seemed almost absurd. But he stressed an important weakness with such analogies: XRP's market capitalization today is vastly larger than Bitcoin's was when BTC first crossed $100.
The Catch
Schwartz sold some XRP around $0.10 because the valuation already seemed extraordinarily high at the time. His position on a potential flippening reflects caution. It's possible. It's not inevitable.
