TL;DR
- Versan Aljarrah, founder of BlackSwan Capitalist, argues that XRP’s original design is for a high price.
- A high value is necessary for scalability and efficiency in settling massive financial flows.
- The price, according to Aljarrah, will be driven by utility and institutional adoption, not by speculation.
The latest post on X by Versan Aljarrah, founder of BlackSwan Capitalist, has generated debate. Aljarrah spoke about the original design and functionality of XRP. In his post, he highlights that the Ripple-backed asset was conceived to have a high price, a characteristic that, according to him, is essential for it to fulfill its role as a global bridge asset.
The expert bases his argument on the need for XRP to handle massive financial flows, including global debt, derivatives, and the provision of liquidity for cross-border transactions.
Aljarrah’s perspective challenges the notion that XRP should remain a low-cost asset. He maintains that a significantly higher XRP price is a functional requirement for the system’s scalability and efficiency. At a higher value, fewer tokens would be needed to move large amounts of value, optimizing large-scale transactions.
Financial Digitization as a Catalyst for XRP
In a YouTube video, Aljarrah elaborated on his analysis, explaining that the global financial system is being digitized at an unprecedented pace. He compared investing in XRP to “owning shares in the Internet itself,” suggesting the asset will be fundamental to moving the world’s value in the future.
He stressed that XRP’s role as a global bridge asset is not based on speculation, but on its intrinsic utility in eliminating the frictions of international payments and providing instant liquidity.
He noted that institutional adoption is already underway, citing examples of central banks tokenizing their debt on the XRP Ledger. This adoption, combined with a fixed supply of XRP, is what will naturally drive the price upward as demand increases.
Ripple’s recent alliances, such as the partnership with Franklin Templeton and DBS Bank to develop “repo” (repurchase agreement) markets and the collaboration with Absa Bank to expand XRP adoption, are presented as key evidence that the Ripple ecosystem is scaling to meet institutional needs.
