New discussions in the Crypto space have been revealed whether production costs will have a major impact XRP Price Bitcoin (BTC) value. Market expert Credibull Crypto outlines how these costs affect the value of XRP compared to Bitcoin, and concludes that both cryptocurrencies follow the same pricing formula.
XRP price formula reflects the price of Bitcoin
Recent discourses on X social media have rekindled debate over whether production costs will play a critical role in determining the price of cryptocurrency. Credibull crypto weighed, explanation Both Bitcoin and XRP follow the same basic pricing model, with the production cost combined with speculative and utility values determining the market price.
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In the case of Bitcoin, the analyst takes into account the costs to mine. Energy consumption and timerepresents a significant portion of the market price of BTC. This production cost forms the “X” variable of the analyst’s pricing equation, with the rest being Speculative demand and utilities.
In contrast, Credibull Crypto emphasizes that XRP’s production costs are negligible and undoubtedly close to zero. request, Selectedand other speculative factors. Analysts argue that markets, whether they are mined or early on, ultimately allocate value beyond production costs based on perceived utility and changes in investor sentiment.
Credibull Crypto’s statement corresponds to a recent conflict between market expert BD and Bitcoin’s biggest tycoon, Robert Breadlove. In his post, Breed Love Proposed XRP’s “100% Premed” status is different from Bitcoin. Bitcoin Maximalist It also warns investors about the potential consequences of this difference, subtly hinting at it. XRP can become a scam token.
BD rebutted, claiming that market demand, not method of production, determines prices. He didn’t emphasize that further Mining Cost Furthermore, Primedined Supply does not essentially determine the long-term value of cryptocurrencies.
Demand determines long-term survival rates
Following Credibull Crypto’s statement, community members Discussed First-time assets like XRP are Large sale Or “ragpur”, which can potentially drive value to zero. They even suggested it Mined supply of BTC The structure provides more protection from such scenarios.
However, Credibull Crypto was pushed back. Statement Its production costs do not guarantee long-term survival or resilience. He noted that demand could disappear for any asset, whether it costs $5 or $100 to produce. He added that the same principles also apply to Bitcoin and XRP, which are priced at $116,601 and $3.34, respectively, at the time of writing.
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The analyst also pointed out that just because a product costs money to produce doesn’t make it inherently valuable. None Continuous interest,Even high-cost assets can collapse in value. To illustrate this point, analysts compared it and compared it to investing a considerable amount of resources into digging huge holes. This is a real effort process, but it may not be worth it if no one finds the hole not useful.
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