David Schwartz, Ripple's former chief technology officer, reaffirmed that his past remark that "XRP cannot be ridiculously cheap" was an explanation about payment efficiency, not a price outlook.

On April 3, blockchain media outlet The Crypto Basic reported that Schwartz, amid debate over whether XRP's price looks low despite increased use, noted that many people took the remark from the perspective of holders. He said his standard was not investment value but a structure needed for payments.

When institutions move funds using XRP, what matters is the total amount being transferred, not the number of tokens. Schwartz explained that the higher the XRP price, the fewer tokens are needed to send the same amount, and large transfers can be handled more easily. He also saw that the impact of transactions on the market price can be reduced relatively.

Schwartz again quoted his original post from November 2017. At the time, XRP was priced at $0.24. For example, to send $1 million, it could be done by using 1 million XRP priced at $1, or using 1 XRP priced at $1 million. Either way, he said, the total amount transferred is the same at $1 million.

He also cited Bitcoin at the time. When Bitcoin was priced around $300, large transactions could shake the market significantly and raise costs, but after the price rose, large amounts could be handled relatively more easily, he explained.

The remark continues to be repeatedly brought up in the XRP community even after 8 years. Schwartz said that four days ago, when asked a question with the same point, he replied that if other conditions are the same, a higher XRP price is more advantageous in terms of payment costs.

Vet, an XRP Ledger (XRPL) validator, also pointed out that the remark is being misunderstood as a price prediction. XRP is currently priced at about $1.32, up 445 percent compared with November 2017. Schwartz saw the current price as sufficient to handle current payment volume, and that if trading volume increases significantly, the price could rise in line with that demand.

Ultimately, Schwartz's main point is not to make an optimistic case about the XRP price itself, but to explain that a certain price level may be needed for efficiency as an asset that handles large payments. The market often consumes such structural explanations as price outlooks, but Schwartz effectively reiterated that investment expectations and payment mechanisms should be viewed separately.

"You're thinking about it from the point of view of an XRP holder. When I said "XRP cannot be cheap" if you're talking about this post, that was talking about it from the point of view of using it for payments.https://t.co/Vkk1C9b7jh"