In a tweet posted earlier, Ripple CTO David Schwartz reported that XRP has grown by 10% yearly for the past five years.
The XRP Ledger’s developer made this information available in response to complaints that the price of XRP has stayed the same over the last five years.
Schwartz estimates that on December 8, 2017, the price of XRP was $0.24 and that five years later, on December 8, 2022, the price was approximately $0.40. That would represent a dividend of almost 10% yearly, according to the CEO of Ripple. Notably, the exact percentage is only 13%.
It’s important to note that, despite the significant price fluctuations Bitcoin has seen over the previous five years, XRP has produced a far larger yearly return over the time frame Schwartz specified. On December 8, 2017, Bitcoin achieved a high of $17,700 on certain exchanges but just $16,000 on Bitstamp. Our calculations show that using the $16k value and the current price of roughly $17,224, Bitcoin’s annual increase has only been about 1.53%. If you included in annual inflation of 2%, Bitcoin investors would have incurred losses throughout the same period.
Many people think that the altcoin’s setting a new all-time high in January 2018 was a notable accomplishment, given the legal uncertainty in the US.
In a lengthy conversation about how people should view speculative assets, Schwartz emphasized that what matters is not the present price but how investors expect the price to change.
The Ripple CEO tweeted, “When you look at buying something as an investment, particularly something that doesn’t produce a revenue stream just from holding it, what matters is how you think its value will change, not what value it has right now,”
Despite the criticism it has received recently, it is imperative to note that XRP has been among the top 10 cryptocurrencies for more than ten years. Additionally, the XRPL has undergone significant upgrades this year and will continue to do so. For instance, the blockchain now offers native NFT capabilities giving unique benefits due to its scalable network. Additionally, an EVM sidechain will be available even as the network builds a native Automated Market Maker (AMM).