"The higher the price of XRP, other things being equal, the cheaper it is to use it for payments. Higher prices make payments cheaper."
"If XRP costs $1, they'd need a million XRP which would cost $1 million. If XRP cost a million dollars, they'd need one XRP which would, again, cost $1 million."
"When BTC was trading at $300, it would move the market too much and be too expensive to be practical. So higher prices make payments cheaper."
David Schwartz explained that XRP's price level affects payment efficiency, countering the belief that lower-priced assets are better for transactions. He emphasized that divisibility and liquidity are crucial for real-world usage. Higher XRP prices reduce the number of tokens needed for large transfers, making payments cheaper. Schwartz referenced Bitcoin's price evolution, noting that as Bitcoin's price increased, large transactions became more practical due to reduced market impact. Ultimately, payment efficiency relies more on liquidity than nominal price.
Read at news.bitcoin.com
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