Ex-Ripple Dev: XRP Investment Could Have Doubled MicroStrategy's Returns
A former Ripple developer has stirred debate by suggesting that MicroStrategy, known for its significant Bitcoin holdings, could have seen double the returns had it invested in XRP instead.
XRP vs. BTC: An Alternative Investment Strategy
Matt Hamilton, previously a developer at Ripple, shared an analysis on X, highlighting a hypothetical scenario where MicroStrategy's portfolio could have performed significantly better with XRP. His analysis compares the long-term performance of XRP against BTC, indicating a potential advantage for XRP over the years.
According to Hamilton's post, a dollar-equivalent investment in XRP, instead of BTC, might have nearly doubled MicroStrategy's returns. This statement challenges the conventional wisdom that Bitcoin is always the superior choice for investment.
XRP's Impressive Gains
The analysis points out that XRP's yearly gain is an impressive 513%, notably higher than Bitcoin's 96%. Despite market fluctuations, XRP's risk-return profile has proven stronger over the observed period. While Bitcoin maximalists often emphasize BTC's stability, Hamilton argues that XRP's increasing adoption and use cases indicate untapped potential.
MicroStrategy's Bitcoin Strategy
Currently, MicroStrategy holds over 601,000 BTC, acquired for approximately $42.87 billion. At current market prices, this holding is valued at over $71 billion, resulting in an unrealized profit of about $29.4 billion. Michael Saylor, MicroStrategy’s chairman, remains a staunch advocate for Bitcoin, consistently encouraging more BTC purchases.
Growing Trend: XRP Treasury Adoption
Supporting Hamilton's argument, several public companies are now establishing dedicated XRP treasuries:
- Trident: Plans to raise $500 million for a major corporate XRP treasury.
- VivoPower: Has already raised $121 million for its XRP-focused strategy, aiming to enhance decentralized finance (DeFi) applications.
- Webus International: Filed with the SEC to create a $300 million XRP reserve.
- Hyperscale Data's Ault Capital Group: Intends to purchase $10 million worth of XRP to support an on-chain lending platform.
- Worksport Ltd.: Allocated $5 million to build an XRP treasury, diversifying alongside smaller BTC positions.
These moves indicate a growing institutional interest in XRP, driven by its use in products, services, and decentralized finance.
Hamilton’s analysis presents an interesting counterpoint to Bitcoin dominance. While MicroStrategy's Bitcoin strategy has yielded substantial profits, an investment in XRP could have potentially generated even greater returns.
Disclaimer: Investing in cryptocurrencies involves risk. Conduct thorough research and consider your financial situation before investing.