Finance Expert Labels XRP as a “Scam”
A finance expert and Bitcoin maximalist recently criticized XRP, calling it a “scam.” He provided several reasons to support his claim, although some of his arguments were misguided.
XRP Not Decentralized
The expert claimed that XRP is not decentralized because Ripple Labs controls the XRP Ledger. However, this is false as Ripple does not have control over the ledger or the token. Amendments to the network require validator approval.
Ripple’s Control Over Tokens
The expert also argued that Ripple controls a large portion of the circulating XRP tokens and could alter the token’s code to issue more if desired. However, XRP has a maximum supply of 100 billion tokens, which has not changed since its pre-mining phase.
Lack of Utility Outside US
Another point made by the expert was that XRP has no utility outside the US. However, the majority of XRP transactions come from outside the US, indicating global interest in the token.
Bitcoin Superiority
The expert compared XRP to Bitcoin, highlighting Bitcoin’s superiority. He mentioned Bitcoin’s decentralized nature and widespread use for regular transactions in countries where other options are limited.
XRP Advocate Counters with Transaction Fees
In contrast, a pro-XRP YouTuber argued that XRP is the future of finance. He pointed out how increasing transaction fees on the Bitcoin network could impact its utility, while XRP offers relatively lower transaction fees.
Hot Take: Expert’s Criticism Misguided
While the finance expert raised concerns about XRP’s decentralization and utility, his arguments were flawed. Ripple does not control the XRP Ledger, and XRP has significant global usage. Additionally, comparing XRP to Bitcoin overlooks the unique features and potential of each cryptocurrency.
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