Misinformation in Crypto – Insights from Ripple CTO

In a recent discussion on X, Ripple CTO David Schwartz highlighted major misinformation in the crypto space regarding price and supply comparisons.

Schwartz was reacting to an X user who agreed with his insights on how comparing prices and supply between two crypto assets can be misleading.

He responded affirmatively:
> “You can’t compare the prices for ‘one coin’ for precisely the same reason you can’t compare the supplies measured in ‘number of coins’. Both those things are confusing misinformation of exactly the same kind and we should call it out.”
> — David “JoelKatz” Schwartz (@JoelKatz) February 22, 2025

Comparing the prices of different cryptocurrencies can lead to misleading impressions of value. Misinformation in the crypto space can result in poor investment decisions and unrealistic expectations.

Schwartz’s comments remind us to analyze crypto assets holistically instead of relying on simplistic comparisons that distort perceptions.

Another Source of Misinformation Identified

The Ripple CTO also pointed out misinformation arising from comparing the supply of crypto assets based on the “number of coins.”

He acknowledged some differences between XRP and Bitcoin, but noted that comparing their supplies might be misleading. Notably, he mentioned that when measured in common units, there is significantly more Bitcoin than XRP.

XRP has a maximum supply of 100 billion, while Bitcoin’s pegged maximum supply is 21 million coins. XRP trades at $2.55, while Bitcoin is at $95,731. In monetary terms, Bitcoin’s supply still exceeds that of XRP.

Given this, Schwartz argues that Bitcoin is not necessarily scarcer than XRP, asserting that the smaller number of BTC is simply due to its greater unit value than XRP.