By Tobi Loba
The CTO of Ripple David Schwartz has some hours ago shared his opinion on the cause of the sudden price collapse of cryptocurrencies in the market, including the digital token XRP.
This came about after a supposed XRP enthusiast asked Schwartz a basic question on why XRP failed to correlate with BTC’s price trend.
“Hey David xrp was 28 cents when btc was 3k last year now this year btc fell to 3k and xrp was 10 cents why is that,” he asked.
In response to the question, the Ripple CTO David Schwartz averred that the situation of digital currencies in the market is still under control.
Afterward, he opined that the price collapse of cryptocurrencies in the market can be attributed to the uncontained outbreak of the deadly virus COVID19.
He then capped his reason for the devastating price loss with the threat of the looming global economic collapse.
“Things aren’t quite that bad yet. But I think the outbreak of an uncontained, deadly contagious virus coupled with the threat of a global economic collapse did a lot of it,” David Schwartz responded.
Things aren't quite that bad yet. But I think the outbreak of a uncontained, deadly contagious virus coupled with the threat of a global economic collapse did a lot of it.
— Ｄａｖｉｄ "ＪｏｅｌＫａｔｚ" Ｓｃｈｗａｒｔｚ (@JoelKatz) March 14, 2020
The same XRP enthusiast shared his observation about the performance of XRP compared to Bitcoin (BTC) in terms of price. He opined that there has been a devaluation of XRP against BTC and other top cryptocurrencies.
He then suggested that there is a possibility that XRP is held down by Bitcoin Whales due to its threat to BTC’s value and functionalities.
He shared this, “But there’s been a devaluation of xrp against btc and most other majors. A third the value lost against btc in a year. Didn’t expect you to reply. Just stating the fact. Is xrp held down by btc whales cause it’s a threat to bitcoin and pow? That’s my theory. Unless it’s Ripple.”
David Schwartz responded thus, “I honestly don’t know. I find the movement of cryptocurrency prices as baffling as everyone else does — maybe more so. It’s very easy to jump to conclusions and see patterns that are probably nonsense.”
I honestly don't know. I find the movement of cryptocurrency prices as baffling as everyone else does — maybe more so. It's very easy to jump to conclusions and see patterns that are probably nonsense.
— Ｄａｖｉｄ "ＪｏｅｌＫａｔｚ" Ｓｃｈｗａｒｔｚ (@JoelKatz) March 14, 2020
Another Possible Cause of XRP’s Hard Time
The supposed XRP community member went further to suggest that the problem of XRP could be from being a pro-establishment in a market that is simply anti-establishment.
“I think xrp has a hard time cause it’s pro-establishment in a market that’s anti-establishment. Btc wins in a world where xrp loses and vise versa. Its one or the other and sadly bitcoin controls the market. The market isn’t educated about ripple and believe alot of FUD,” he shared.
In response to his conception, David Schwartz referenced the SVP of Product and Corp Dev at Ripple, Asheesh Birla.
He said, “Recently Asheesh Birla said we were a “counternarrative in a counternarrative” because crypto is counternarrative and inside that we’re working with financial institutions, not using proof of work, and so on.”
Recently @ashgoblue said we were a "counternarrative in a counternarrative" because crypto is counternarrative and inside that we're working with financial institutions, not using proof of work, and so on.
— Ｄａｖｉｄ "ＪｏｅｌＫａｔｚ" Ｓｃｈｗａｒｔｚ (@JoelKatz) March 14, 2020