A prominent XRP community member, Chad Steingraber, has presented a bold prediction, suggesting that XRP could one day reach a price of $20,000 per token. Steingraber, a game developer and notable commentator on XRP-related matters, outlined several potential drivers for this ambitious valuation. Supply Dynamics and Deflationary Design One of Steingraber’s central arguments revolves around XRP’s fixed supply of 100 billion tokens and its mildly deflationary mechanism. The XRP Ledger permanently removes a small amount of XRP from circulation with each transaction, gradually reducing the available supply. Steingraber emphasized that much of XRP’s current circulating supply—approximately 57 billion tokens—is accessible for public trading. However, a portion of this supply has been permanently lost, effectively reducing the tokens in circulation. He argued that this reduction, combined with increasing demand, could create conditions conducive to a significant price surge. “The Chad Steingraber Theory” – The Road to a $20K #XRP A Thread from The Future… I’m going to tell you a story and I’ll spin it so that all you need is an interest to learn what’s in store for all of us. Grab a drink, grab a snack and let’s take a ride, shall we? — Chad Steingraber (@ChadSteingraber) August 18, 2022 Institutional Adoption and Private Ledgers A cornerstone of Steingraber’s analysis is the potential for institutional adoption of XRP as a reserve asset. He proposed that major financial institutions, such as Bank of America and JPMorgan, could issue proprietary digital currencies—like BOAcoin or JPMorganCoin—on private versions of the XRP Ledger. According to Steingraber, these private ledgers could allow banks to conduct both internal and cross-border transactions securely while maintaining privacy. He noted that such coins could be backed by XRP, effectively tying the asset to the operations of these institutions. Furthermore, Steingraber discussed the role of institutional liquidity providers (ILPs) as intermediaries facilitating transactions between banks. These ILPs, he explained, would maintain reserves of XRP and bank-issued coins, enabling seamless currency exchanges without exposing parties to direct counterparty risk. For example, in a scenario where Bank of America transfers funds to JPMorgan, ILPs would use XRP as the intermediary currency, facilitating the transfer while ensuring efficiency and security. Potential Supply Shock Steingraber also speculated about the possibility of a supply shock resulting from increased institutional demand. He suggested that financial institutions and liquidity providers could compete to acquire XRP, potentially depleting the public supply available on exchanges within a short period. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 This scenario, according to him, could leave retail investors unable to purchase XRP, causing a rapid price increase. He further argued that the global financial system’s immense size, including the $40 trillion U.S. dollar money supply and the derivatives market, could amplify this demand. Steingraber even likened the potential reduction of XRP’s public supply to Bitcoin’s limited availability, suggesting that the accessible supply could shrink to levels as low as 21 million tokens. Challenges and Assumptions While Steingraber’s projections have sparked interest, they rely on several assumptions. The widespread adoption of XRP as a reserve asset by global banks would require significant regulatory clarity, as well as a high degree of trust in the technology. Additionally, the implementation of private ledgers and the integration of XRP into banking systems on such a large scale would necessitate collaboration among financial institutions and alignment with international standards. Although the vision presented by Steingraber may seem far-fetched, it highlights the speculative potential some see in XRP’s future. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post XRP Path to $20,000? Analyst States Factors To Make This Whopping Price Happen appeared first on Times Tabloid .
