A notable figure in the crypto community has argued that XRP’s max cap of 100 billion tokens would be insufficient to facilitate transactions for the global economy.
In a recent statement on X, Versan Aljarrah, the founder of Black Swan Capitalist.io, stated that burning XRP tokens is pointless. Aljarrah voiced his reservations about XRP incineration amid the asset hitting a noteworthy burn milestone.
Recall that last week, The Crypto Basic uncovered that tokens burnt off the XRP Ledger had surpassed 12 million units.
Key community figures, such as Panos Mekras, co-founder of Anodos Finance, view this milestone positively, emphasizing that XRP is a deflationary asset.
However, the Black Swan Capitalist founder boldly asserted that XRP burns are an unnecessary effort. According to him, XRP’s maximum supply cap of 100 billion XRP could be inadequate to support the global economy.
100B XRP Would be Inadequate
Aljarrah argued that while the idea of burning XRP tokens may seem appealing, it is ultimately unwarranted. He sees the business propositions of firms such as Ripple absorbing XRP’s massive supply. In his words:
“If you think 100B XRP is enough to service the global economy, then you still don’t understand Ripple’s goal. Burning XRP tokens sounds tempting, but it’s unnecessary.”
If you think 100B #XRP is enough to service the global #economy, then you still don't understand #Ripple's goal
Burning #XRP tokens sounds tempting, but it's unnecessary
Because when the time comes, there won't be enough to meet the demand not yet recognized by the #mainstream pic.twitter.com/CrAxlDn6tB
— Black Swan Capitalist (@VersanAljarrah) January 12, 2024
Furthermore, Aljarrah contended that when the time comes, there may not be enough XRP to meet the demand, especially considering potential future demand not yet acknowledged by the mainstream.
However, Yousef Al Redha, founder of MoonStudios, dismissed the idea that Ripple’s financial goals could support XRP in the long term.
“Ripples has goals, I’m sure. Do those goals include you and me,” Al Redha asked. He emphasized the role of burns in creating a scarcity factor and, by extension, propelling the value of XRP.
Meanwhile, U.K.-based crypto enthusiast Jason Douglas attempted to clarify the projected demand for XRP in the financial landscape.
Douglas theorized that if XRP captured 2% of the daily trillion-dollar volume moved by JP Morgan, it would amount to $200 billion.
With the limited supply of only 100 billion XRP tokens, Douglas suggested that the price of XRP would have to reach a significantly high value to accommodate such a scenario.
Significantly, the XRPL burn mechanism is to discourage network spam rather than actively reduce XRP supply.
Nonetheless, the prevailing voices in the crypto community find burns necessary as it could impact XRP’s value.
Disclaimer: 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’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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