Ripple [XRP] News: David Schwartz Says XRP Wins Even If Bitcoin Rules Global Settlement

Ripple CTO Emeritus David Schwartz has given one of his clearest explanations yet of why XRP should rise in value if the XRP Ledger succeeds. He argued that the token would still find a role even in a world where Bitcoin dominates global settlement.

“Even if you imagine a world where nearly all settlement is done using bitcoin,” Schwartz wrote on X, a successful XRPL would probably host several versions of wrapped or bridged Bitcoin, “and XRP will capture value bridging them.”

The Debate That Set It Off

Schwartz’s comments came during a heated argument on X about what actually drives XRP’s price. XRP commentator Saul argued that XRPL burns transaction fees to keep validators from being paid for producing blocks, not to push the price up. He said the deflation caused by those very low fees has little direct effect on price. Another user disagreed, saying the burn was a deliberate design choice and accusing Saul of not understanding the ledger.

Schwartz’s Thesis In One Line

Schwartz then summed up his own view. Low fees and reliable operation make XRPL a good place to move and store value. That draws value onto the network, and XRP captures part of it because of advantages no other asset on the ledger has.

Three Reasons XRP Captures Value

According to Schwartz, XRP has several built-in advantages on XRPL:

• Bridging liquidity: XRP links trading pairs through auto-bridging, an example Saul raised and Schwartz agreed with
• No counterparty: it is the only counterparty-free asset that any XRPL account can accept
• Fees: users must hold XRP to pay transaction fees on the network

“All of those things can help drive value and demand,” Schwartz wrote.

The One Scenario Where XRP Loses

Schwartz said it is “very unlikely” that XRPL could succeed in financial applications while XRP itself sees little demand. The only way he could see that happening is if the world ended up with one completely dominant settlement asset, which he also considers unlikely.

Even in that case, his Bitcoin example suggests XRP would keep a role. As long as several wrapped versions of the dominant asset exist on XRPL, XRP can act as the bridge between them.

Why It Matters For XRP Holders

Schwartz’s argument ties XRP’s long-term value to how much the XRP Ledger is used, not to its fee burn or speculation alone. The case depends on XRPL winning real financial activity, which is still the main open question for the network.