In a recent live-stream session, renowned crypto analyst Zach Rector sparked a conversation on the possibility of XRP hitting $50,000 compared to Bitcoin’s potential ascent to $500,000.
Massive update tonight which includes my response to crazy price predictions! #XRP
$500,000 Bitcoin vs $50,000 XRPhttps://t.co/PoNUVtHheg
— Zach Rector (@ZachRector7) December 6, 2023
Rector began by acknowledging Bitcoin’s recent into the $40k region. He highlighted Bitcoin’s impressive chart climb, referencing the origin of the rally that commenced on October 16 amid a fake ETF report.
With Bitcoin breaching the $44,000 mark and XRP around $0.64, Rector highlighted the challenges and opportunities for XRP and Bitcoin to hit the ambitious targets.
Bitcoin $500k vs XRP $50k
On the prospect of Bitcoin becoming an asset worth $500,000 per unit, Zach Rector expressed skepticism about the reality.
In particular, he raised questions about Bitcoin’s potential to surpass gold’s market cap. The foundation of this view is that Bitcoin at $500k would amount to a market valuation exceeding $10 trillion, a market cap close to gold.
The analyst claims Bitcoin lacks the utility to attain a multi-trillion cap like gold. Meanwhile, he raised doubts about Bitcoin gaining additional utility without significant changes to its network.
In parallel, Rector cited multiple Bitcoin forks that supposedly diluted its core value, such as Bitcoin Cash, Litecoin (LTC), and Dogecoin (DOGE). He asserted that these attempts diminished the authenticity of the original Bitcoin.
In contrast, he hinted at a more optimistic outlook for XRP. Specifically, Rector acknowledged the possibility of Bitcoin reaching $500,000 but questioned its likelihood compared to XRP’s potential to hit $50,000.
XRP at $50k
Backing his claim, Rector presented a compelling case for XRP’s growth trajectory. He first contended that many underestimate the scarcity factor of XRP. He pointed out that the utility-driven burning mechanism, combined with the diverse functionalities added to the XRP Ledger (XRPL), could result in a shortage of available XRP for liquidity.
Specifically, Rector underscored the significant developments within the XRP ecosystem, such as introducing an EVM side chain, NFTs, and automated market makers. He also cited the XS 55, which seeks to allow diverse payment capabilities.
Furthermore, the analyst argued for XRP’s liquidity function in the payment landscape. In this context, he drew a contrast to traditional assets like gold, asserting that gold lacks the inherent functionality to serve as liquidity. Rector believes XRP’s role in enhancing liquidity through DLT technology is pivotal in enhancing its value.
Despite acknowledging the lengthy journey ahead for XRP to reach $50,000, he believes that the combination of liquidity function, utility enhancements, and problem-solving capabilities positions XRP as a key player in the digital asset landscape.
It is worth mentioning that XRP growing from $0.65 to $50k necessitates a formidable percentage growth exceeding 7,692,300%. On the other hand, Bitcoin accent from $44k to $500k would be merely a 1,136%.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
