In a recent YouTube video, XRP community member and media personality Zach Rector spotlighted Chad Steingraber’s intriguing theory of an XRP road to $20,000, sparking discussions within the community.
Rector pointed out that this was not his theory, as he was highlighting Steingraber’s words. The media personality acknowledged the ambitious nature of a $20,000 prediction. He noted that the theory could be plausible for an XRP to rise to a higher value, not necessarily up to $20,000.
Steingraber, a game designer in the XRP community, updated this theory on December 30, 2023. Notably, the theory navigates through several key points, each offering a perspective on XRP’s journey to higher values.
XRP in Asset Scarcity
Steingraber emphasized the concept of “Asset Scarcity,” drawing parallels with an auction bid scenario where limited assets create a demand-driven value surge.
He explored the idea that projecting current prices into unrealized value, coupled with the deflationary nature of XRP, contributes to the potential for a significant price increase.
The theory addressed the significance of limited assets, using the Mona Lisa as an analogy. Steingraber underlined XRP’s limited supply, currently less than 100 billion, and its deflationary mechanism through ledger transactions.
In an attempt to provide context for those new to XRP, Steingraber highlighted that each XRPL transaction burns XRP. He attributed XRP’s current seemingly low value to existing trading within a small public pool.
The game developer argued that banks use regulated custodians, not public exchanges, for transactions, stressing their desire for privacy. He noted that Ripple Payments level the playing field for smaller entities, marking a shift from the anticipated use of On-Demand Liquidity (ODL).
Institutional Interest in Driving Scarcity
The theory takes a turn toward banks creating private ledgers, as he sees XRP as a reserve currency akin to gold. Steingraber highlighted the potential creation of bank-specific coins on private XRPLs.
According to him, these banks could seek custody of their tokens by leveraging Ripple-owned Metaco. Should this materialize, Steingraber emphasized that the phenomenon could lead to global competition among banks to procure and hoard XRP, which would serve as the reserve currency for their tokens.
The theory presents the idea that as this race picks up, banks and liquidity hubs could rapidly drain the public XRP supply, triggering a surge in prices. Banks and billionaires, driven by a business dependency on XRP, could engage in a massive institutional buying frenzy.
The XRP road to $20,000, as outlined by Steingraber, also highlights the potential role of ETFs, private lock-ups, and the evolution of Nostro Vostro accounts into live liquidity hubs. He predicts a world where digital assets play a crucial role.
While $20,000 represents a price target too ambitious to envision, commentators such as Zach Rector have highlighted the rationality of the theory, suggesting that it could drive prices higher, even if XRP does not clinch anything close to $20,000.
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.
