XRP is a deflationary asset, meaning its supply decreases over time, which causes its value to increase as it becomes scarcer, in contrast to the US dollar which is inflationary and increases in supply over time; the speaker recommends thinking of XRP as 'bars of gold' to help understand this concept, as gold is finite and becomes more valuable as it becomes less available.
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#cryptocurrency #ripple #bitcoin #cryptonews #crypto #xrp #comment #cryptotrading #fyp #usaAdded:
The confusion around this topic is nobody's fault. It's kind of hard to grasp because we've got a lot of brainwashing when it comes to how money works in the US dollar. So, here's how you want to see it. I want to make this really quick and really easy. Instead of looking at it, everything as the reference point is the US dollar, even though that's really hard not to do, you want to think about XRP as like bars of gold. And if you told me that if I'm running a ship that delivers goods and services and things of value, and let's say I carry 100 bars of gold with me.
You can't tell me that the toll on the quantum bridge, you want a part of each one of my bars of gold, if I have 100 of them.
Compare it to saying, "I'll give you a little bit of one bar of gold because the gold is way more valuable than the toll."
And the toll should be nominal, not encumbering.
So, we have to move away from looking at US dollars as like the finite form it's supposed to be in. So, anyways, I hope that helps. XRP is a deflationary asset and it's valuable and it's going to be less of it as time goes on and it's going to be worth more as time goes on as it becomes less, which is the complete opposite of the US dollar.
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