2 min read · Jan 12, 2024
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XRP wasn’t just created; it was meticulously crafted with a grand vision in mind — a vision that goes beyond the traditional financial systems we know. When Ripple Labs co-founder Arthur Britto mentioned in 2017 that “XRP must be scalable to accommodate 7.5 billion people,” it set the stage for a revolutionary leap.
Let’s dissect why XRP might be destined for the impressive $10,000 mark based on its design.
Liquidity and Availability:
XRP’s core purpose is to revolutionize cross-border payments, making them faster, cheaper, and more reliable than ever. Ripple’s Insights blog emphasizes how XRP serves as a reliable source of liquidity for financial institutions. The strategic lockup of 55% of total XRP in escrow accounts plays a role in driving up prices. While it’s currently trading around $0.31, the potential for higher prices is evident, especially considering the demand for institutional use.
Divisibility Matters:
XRP’s maximum supply of 100 billion, divisible by 6 decimal places, ensures flexibility. At $0.31, the divisibility might seem excessive, but at a lofty value like $10,000 per XRP, it serves two crucial purposes: low transaction costs and affordability for small retail use. Even at $10,000, the transaction cost would be a mere $0.10, making it feasible for everyday transactions.
Global Reach:
XRP’s design aligns with addressing global financial inclusion. With approximately 1.7 billion unbanked adults globally, XRP, utilized in Ripple Labs’ global initiatives, can provide access to fast, stable, and affordable digital financial tools. The aim is to cater to the unbanked population, especially in developing countries with mobile banking services.
Scaling for Humanity:
Arthur Britto’s vision of the XRP ledger scaling to serve 7.5+ billion people and numerous devices underscores the global impact XRP aims to achieve. The ongoing development of an account mechanism further enhances its potential for widespread adoption.
Summary:
The design choices behind XRP lead us to believe that it was crafted to operate at $10,000 and cater to a truly…
