XRP The Debate Is Finally Over...

Added: 2026-05-05

[00:00:00]The XRP ledger was built right from the start. This is often something I talk about in my videos, but in this one, we're going to talk about what that actually means. Guys, we just heard from some of the largest CEOs in all of traditional finance that the entire financial system, and this is from them, not me, is going to be tokenized. That amounts to quadrillions of dollars moving from the old outdated legacy systems to the new financial system built on distributed ledger technology.

[00:00:32]This is something we used to speculate about. Now the largest institutions are telling you to your face it's about to happen. But the blockchain that garners the most amount of value from this transition is going to be the one that has the appropriate infrastructure to run this next generation financial system. In this video, I want to break down exactly why the XRP ledger was built right from the start for this immense task that blockchain is about to take on. Guys, in this video, we're going to jump into the core of why the XRP ledger wins over the long run. Make sure to stick around for this whole thing. Like always, your support means so much to this channel. Thank you to everyone who likes and subscribed. And that said, let's jump right into it. And I hope you guys enjoy the content. So, I want to start this video off and actually share with you a quote that I talked about the other day on the channel, but didn't actually get into.

[00:01:22]And that was this one right here by Saul. He said, "A Bitcoin miner wants other miners to be bad so that he has a better chance to win blocks. Miners secure the network. validators secure the XRP ledger, but any given one of them wants other validators to be good.

[00:01:40]There's no reward for competing, and all XRP stakeholders want high security and efficiency. Where Bitcoin is misaligned, XRP is aligned. This makes for a healthier system. And guys, I want to talk about what this actually means because I know you probably heard the words I just said and you might even understand that it was generally saying that Bitcoin system is bad and the XRP ledgers is good. But why is that the case? Because I think at its core, this is one of the most important things to understand when we're talking about why the XRP ledger is going to win. It's not just random. It's not just because Ripple is a really good company and really good at selling blockchain to large financial institutions. That's part of it. Another part of it is that Brad Garlinghouse is an awesome CEO.

[00:02:33]David Schwarz is an awesome promoter of the tech behind the XRP ledger and they have built a massive ecosystem that is larger than any other chain out there that can actually handle the financial needs the next generation financial system is going to need. But at its core, none of this would matter if the XRP ledger wasn't built in a way to actually handle the transformation we're about to see. So, we're going to talk about the difference between how the XRP ledger works versus every other chain out there. If you take a look at what this quote says right here, a Bitcoin miner wants other miners to do bad so that he has a better chance to win blocks. This is at the core of how Bitcoin works. Every single Bitcoin miner is in competition with one another for a financial reason. They are all fighting against each other to win the next Bitcoin reward. Pretty much every single player on that network is there for profit against one another. Now this creates an ecosystem that is extremely competitive and it drives everyone to try very very hard in order to essentially be better than the next person out there. That is one way to look at something that could be very positive. But there's a huge negative to it as well. The truth is is the vast majority of people on the Bitcoin network are there simply to make profit.

[00:04:05]That's why in the advent of a lot of the data centers coming out that are really fueling the growth of AI, a ton of Bitcoin miners ended up turning off their systems, packing their bag, and leaving. And guys, you might be thinking, all right, well, you know, that's just a short-term thing.

[00:04:22]Ultimately, people will come back to mining Bitcoin. But the truth is is that is just giving us a glimpse of the non-sticky behavior of the people securing the network. The truth is is another massive thing that we're going to have eventually is the Bitcoin rewards are going to run out and slowly dwindle away. This is just another thing that essentially is going to push miners away from the network. Miners are there for profit and they're there to work against each other in order to make as much profit as possible. This ultimately over time drives bad incentives because it drives for a single winner. It drives for someone to be the best possible person to dominate and control the entire network. In a chain that is dominated by financial resources and the motivation is financially driven, you create a world where one person has the potential to take the resources that they are gaining from the power that they are using to beat everyone else and continue to centralize control over the network. Over time, Bitcoin's competitive infrastructure with the financial incentive on the other side drives centralization to the number one player out there. And right now, what we're seeing is this is actually happening at a very very quick pace in comparison to how early we are to this entire revolution. Now, what this does over time is centralizes compute to the largest players. If we take a look at what has happened to the Bitcoin network, we can see that three players via BTC, Antpool, and Foundry USA make up more than 50% of all hash power. That is because these players driven by profit have been incentivized to make the most amount of money possible and dominate as much of the network as they possibly can. And over their time in doing it, guess what? They get better systems, they get better software, they get better GPUs, and they continue to build out infrastructure that widens their gap and widens their lead. This is what happens when you're in competition for a financial profit. It leads to centralization. It leads to a single winner. The XRP ledger though is built very different. the XRP ledger. There is no financial incentive to take more control over the network. People are there to cooperate and work together.

[00:07:01]This is a vastly different system because it doesn't incentivize any single validator to go out and dominate its competitors. Instead, you want the strongest network out there. And by doing that you are building up the rest of the players on the network. Now think about these two things against one another. Now in a blockchain you want as many validators as healthy and working as good as possible. If everyone is working together to create a stronger network, then essentially every single validator is raising up the other validator to a higher standard to a system where everyone is working at their maximum capacity. But no one is essentially being put in a place where they are looking to see other people fail. On the Bitcoin network, it's very different. The largest and most powerful players wants all of its competition to be weaker and get weaker and get less control over the network so they can dominate more and more rewards. What we are seeing is that the incentive structure for people to contribute to Bitcoin is actually negative for the long-term health of the network. And when you have these types of things misaligned, it can create massive problems over the long run. If you extrapolate this issue happening with Bitcoin to every other blockchain out there, what you'll notice is the XRP ledger is the only one that I know of that does not offer a financial incentive. Every other blockchain out there uses money, uses rewards to incentivize participation and to make people compete against one another. That works for a period of time, but ultimately over time the winners just become bigger and bigger winners, leaving the rest of the network behind.

[00:09:06]This is not how we need these systems to work and it is not how these systems are going to be able to function if they do really persist into the future. There is no way you can have a system that slowly centralizes the network at the heart of the next generation financial system.

[00:09:27]The truth is is it's just going to cause things to break down over time and lead to the ultimate scenario that is a replica of the system we've already have. The truth is is that is what every other chain has built. And the XRP ledger is the only chain that has flipped this entire narrative on its head. Rather than paying people to be there and making people compete for financial rewards, it has created a cohort of people who are there to make the network better and build infrastructure to allow the XRP ledger to be at the center of the next generation financial system without the necessary flaws that these other chains have instilled directly into their codebase. the world we're heading into, the design is going to be absolutely critical and all these other chains have a massive problem at the core of how the chain functions from a validation standpoint. The XRP ledger, on the other hand, is designed completely different.

[00:10:34]It encouraged cooperation over competition. A critical structure that puts the XRP ledger in a place to have a robust system regardless of what happens and what changes and what new participants come in. The XRP ledger trends towards decentralization while the rest of the cryptocurrency world trends towards centralization. Guys, these are things that institutions are not going to look over and it's going to eventually play out in a way where I believe the XRP ledger might be at a strategically critical place that the rest of the cryptocurrency industry simply can't fill. Thank you so much for coming. I hope you enjoyed this update and for now, nickel out.