Basri Caneri 
Ripple CTO David Schwartz emphasized that although price and supply comparisons are a frequently used evaluation method, such comparisons carry the risk of misleading. In his post on X (Twitter), he stated that the tendency to evaluate different crypto assets only on price and total supply is a faulty method.
Why Comparing Cryptocurrency Prices is Wrong?
Schwartz said that investors often have the mistaken notion that “if one coin’s price is lower than another, then it has more upside potential “. According to him, evaluating the price of a crypto asset on its own is an inadequate approach to understand the true value of that asset.
At this point, Schwartz discussed the comparison between Bitcoin (BTC) and XRP, saying that while Bitcoin may seem more valuable because its supply is low, comparisons may remain superficial.
How Supply Comparisons Mislead Investors
Schwartz also pointed out that direct comparisons of the supply of crypto assets can be misleading. Referring specifically to the comparison of Bitcoin and XRP, Schwartz stated that evaluations based on supply are incomplete:
- Bitcoin’s maximum supply: 21 million
- XRP’s maximum supply: 100 billion
- The price of Bitcoin: $95,731
- The price of XRP: 2.55 dollars
Looking at this data, Bitcoin is considered scarce because its supply is much lower than XRP. But in reality, according to Schwartz, Bitcoin’s supply is worth more than XRP in terms of total market capitalization.
Schwartz said that it is erroneous to assess scarcity based on supply alone, because price alone is not a meaningful metric. It is important to consider supply and market value together.
Schwartz: “Don’t Evaluate Cryptocurrencies on a Single Criterion”
Schwartz emphasized that investors should make more comprehensive analysis instead of simple comparisons. Stating that misinformation and incomplete analysis in the crypto market misleads investors, Ripple CTO stated that trading decisions based on price and supply comparisons can be risky.
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