In a tweet that continues to echo through the XRP community years later, David Schwartz, Ripple’s Chief Technology Officer and one of the lead architects of the XRP Ledger, offered a powerful insight into why XRP simply can’t remain cheap if it’s to serve its intended purpose in the global financial system.
Originally shared on November 21, 2017, and recently resurfaced by respected X user Xaif, Schwartz’s argument is more relevant today than ever.
Why XRP Needs to Be Valuable
In his two-part tweet, Schwartz laid out a straightforward but compelling point:
“It can’t be dirt cheap. That doesn’t make any sense. 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.”
DAVID SCHWARTZ EXPLAIN WHY $XRP CAN'T BE CHEAP🤯🤯
Higher prices make payment cheaper he's hinting xrp price in millions 🤯 pic.twitter.com/wW1BaYIM1w
— 𝕏aif🇮🇳|🇺🇸 (@Xaif_Crypto) July 19, 2025
What he’s saying is simple: if XRP is to be used for high-value transfers, like facilitating real-time cross-border payments, its price must be high enough so that fewer tokens are needed per transaction. The higher the value of each XRP, the less you need to move around to complete a payment. This is crucial for minimizing costs, reducing network congestion, and keeping the system efficient and scalable.
He followed up with an even more important clarification:
“Except that higher prices make payments cheaper. […] When bitcoins were $300, it would move the market too much and be too expensive to be practical. So higher prices make payments cheaper.”
Here, Schwartz emphasizes that when an asset is low in value, moving large amounts becomes inefficient and causes unnecessary market impact. But when a token is more valuable, you can transfer more money with fewer tokens, making the transaction smoother and cheaper. For a bridge currency like XRP, this isn’t just ideal, it’s necessary.
Why This Still Matters
Xaif’s decision to bring this post back into the spotlight couldn’t be more timely. In 2025, XRP is no longer just a theoretical tool for financial institutions; it’s a real-world solution. Ripple’s On-Demand Liquidity (ODL) system is now active in over 45 countries, helping banks and payment providers move funds across borders without the need for pre-funded accounts.
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As global payment flows expand into the trillions, the logic behind Schwartz’s argument becomes even more critical. XRP must hold significant value per unit if it’s to serve as a serious instrument for financial liquidity. A low-priced XRP simply wouldn’t be viable for handling such volumes at scale.
XRP Market Update
As of report time, XRP is trading at $3.53, reflecting growing momentum in both institutional adoption and market confidence. The price has steadily recovered from earlier dips and surpassed its previous all-time high of $3.40.
This surge is backed by major factors: institutional buying, increasing utility through Ripple’s expanding network, and stronger regulatory clarity following the long-standing SEC lawsuit. On-chain data reveals that large wallets have added more than 2 billion XRP in the past few weeks, a clear signal of renewed belief in the asset’s long-term potential.
In conclusion, David Schwartz’s message from 2017 still holds powerful relevance in today’s landscape. As Xaif rightly reminded the community, XRP’s role isn’t just to be another tradable coin, it’s to be the backbone of a new global payment system. And for that to happen, it can’t stay cheap. A valuable tool requires a valuable token. Now, the market finally seems to be catching up to that truth.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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