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In a recent discussion on X, Ripple CTO David Schwartz highlighted major misinformation in the crypto space regarding price and supply comparisons.
Schwartz was reacting to an X user who had commented in agreement with his insights on how the comparison of prices and supply between two crypto assets can be misleading.
Yuri MolchanSchwartz responded in the affirmative, stating: "You can't compare the prices for 'one coin' for precisely the same reason you can't compare the supplies measured in 'number of coins'. Both those things are confusing misinformation of exactly the same kind and we should call it out."
Comparing the prices of different cryptocurrencies can create misleading impressions of value. This is important as misinformation in the crypto space can lead to poor investment decisions and unrealistic expectations.
Schwartz’s comments serve as a reminder to analyze crypto assets holistically rather than relying on simplistic comparisons that can distort perceptions.
Another source of misinformation identified
The Ripple CTO also called out potential misinformation based on comparing the supply of crypto assets based on the "number of coins."
Tomiwabold OlajideAs previously reported, Schwartz acknowledged that while there are similarities and differences between XRP and Bitcoin, he believes that a supply comparison between both crypto assets might be misleading.
The Ripple CTO pointed out the main difference in XRP and Bitcoin supply, stating that when measured in common units, there is a lot more Bitcoin than XRP.
XRP has a maximum supply of 100 billion, while Bitcoin has a pegged maximum supply of 21 million coins; XRP trades at $2.55 while Bitcoin trades at $95,731. When converted to dollars, the supply of Bitcoin remains higher than XRP in this context.
Given this, Schwartz infers that there is no meaningful sense in which Bitcoin is scarcer than XRP, adding that the only reason one gets a smaller number of BTC is because it is a larger unit of value than XRP.
Dan Burgin
Vladislav Sopov