Ripple’s XRP is facing renewed criticism from Bitcoin supporters and industry analysts. Critics argue that XRP lacks decentralization, has limited utility, and is no match for Bitcoin.
Centralization and Utility Concerns
Prominent voices in the crypto industry claim XRP is not truly decentralized. Bitcoin advocate Nic Carter described XRP as “a token on a database maintained by Ripple Labs,” likening it to an “IOU on the Starbucks app.” Critics say Ripple’s control over XRP’s supply undermines its status as a cryptocurrency.
XRP’s primary use case, serving as a bridge currency for cross-border payments, is also under scrutiny. Carter argued that stablecoins, which are less volatile, have made XRP obsolete for such transactions.
“No one wants to use a volatile, illiquid asset as a bridge currency,” Carter wrote in a widely shared post.
Bitcoin Advocates Double Down
Bitcoin advocates like Pierre Rochard and others have joined the conversation, reiterating that XRP cannot compare to Bitcoin. They highlight Bitcoin’s decentralized, immutable, and censorship-resistant nature, contrasting it with XRP’s reliance on centralized validators.
Critics also allege that Ripple Labs inflates XRP’s value through partnerships and marketing efforts. Some claim the token primarily serves to benefit Ripple financially.
Historical Criticism Resurfaces
A 2020 thread by Nic Carter was revived in the debate. It accused Ripple of withholding 80% of XRP’s total supply at launch and gradually releasing it to retail investors. Critics argue this distribution model mirrors centralized financial systems that Bitcoin aims to disrupt.
What’s Next for XRP?
XRP remains a polarizing topic in the crypto world. While Ripple defends its token as a tool for improving cross-border payments, critics continue to question its decentralization and long-term relevance.
As debates rage on, XRP’s role in the evolving crypto landscape remains uncertain. Will it prove its utility or fade under criticism? The future will tell.
