Cryptocurrency expert Cryptoinsight commented on what Ripple haters get wrong about how the company handles its XRP holdings. The expert also explained why the altcoin is set to explode this year despite looking recent all-time records (ATH).
What Ripple Haters Are Wrong About XRP
In Post XCryptoinsight found that people who hate XRP are very close to being right, but they are missing one key step in their equation. The expert noted that these haters are accusing XRP sales waveso they can buy real world companies and assets because that’s how they make money.
However, Cryptoinsight believes that Ripple haters are wrong. He opined that they completely misunderstood the business model and, more importantly, the direction of causality. The expert admitted that Ripple can earn some of its money XRP holdingsbut the goal is not to replace XRP with time-honored assets.
Instead, Cryptoinsight stated that Ripple is monetizing its XRP holdings to build a financial ecosystem that will make XRP more valuable over time. He further noted that this distinction matters because if a company has approximately 40% of assets that, on a global scale, could be worth more than its entire balance sheet, it is not treated as operating cash.
The expert further stated that such a company would not consider merely selling the most asymmetric assets it has in order to stack ordinary companies. Instead, he believes they would do the opposite, which is what he believes Ripple is currently doing. Cryptoinsight explained that the Ripple model is the employ of time-honored assets, infrastructure, licenses, liquidity systems and institutions to escalate The value and necessity of XRP.
How Ripple Takeovers Will Cause XRP to Explode
Cryptoinsight stated that Ripple’s acquisitions of companies such as Hidden Road, Rail, and GTreasury are not end goals, but rather multipliers. He noted that these firms will aid escalate institutional liquidity, improve trust and compliance, escalate transaction throughput and create real demand for settlement. The expert added that the most vital thing is that it will be successful XRP status as a neutral bridge asset profitable on a global scale.
Cryptoinsight assured that these companies are not replacing XRP, but rather building the infrastructure required for the altcoin to function efficiently. He then turned his attention to the flywheel, which he believes most people miss. The expert stated that it all starts with XRP on Ripple’s balance sheet as the strategic core and that The crypto company then creates the paymentsliquidity, deposit, stablecoins and treasury access.
Moreover, institutions are turning to Ripple because the payment stack that includes XRP is complete. The next part of the flywheel is that XRP becomes the most effective neutral settlement layer where demand grows over time. Cryptoinsight found that long-term price growth outweighs short-term sales. Then he described Selling XRP on Ripple as a deployment of capital, not dilution.
Cryptoinsight stated that if Ripple’s goal was simply to become a profitable TradFi-style company, none of this would make sense. In such a case, he argued, the company wouldn’t obsess over a neutral settlement, maintain an architectural center for XRP, or push XRP onto regulated institutional rails. Therefore, the expert stated that the final decision is not to sell XRP to purchase the asset, but to employ the asset to make XRP inevitable.
At the time of writing, XRP is trading at around $1.84, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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