Peter Brandt: Ripple is XRP’s bag holder and it WILL double the supply
If we had to point out someone who has always had a crush on XRP, we certainly could not fail to mention veteran commodity trader Peter Brandt. Recently, he continued to criticize XRP by comparing it to the U.S. Dollar.
XRP can be compared to the USD
The Fed is the USD’s bag holder — they can double the supply if they want
Ripple is XRP’s bag holder — and it WILL double the supply
I cannot believe the number of otherwise smart ppl who have drank XRP cool-aide
— Peter Brandt (@PeterLBrandt) July 24, 2020
Peter Brandt pointed out the parallels between the U.S. Federal Reserve and Ripple
Brandt draws parallels between the U.S. Federal Reserve and Ripple to make its point:
“The Fed is the USD’s bag holder – they can double the supply if they want. Ripple is XRP’s bag holder – and it WILL double the supply.”
The Fed is responsible for managing the money supply in the United States, which has soared trillions of dollars over the past decade. Its balance sheet is expected to rise to nearly $ 10,000 by 2021 after President Jerome Powell begins firing on all the pillars to support financial markets and ease the blow from crisis this year.
Some see the Fed’s fast and furious money printing as reckless while backing the return of the gold standard that Brandt does not think will return.
Ripple is the primary owner of XRP, who controls the token supply while unlocking 1 billion XRP tokens monthly. According to Ripple, this does not affect XRP nor the price. According to data provided by crypto research firm Messari, the inflation rate of XRP is currently at a whopping 21.3% (compared to 3.4% of Bitcoin).
Brandt has previously called XRP, an XRP, manipulated, whose price action is only supported by Ripple. While chartists believe that XRP is a deadlock game, he is a very strong hypercharger on Bitcoin and Ethereum. That said, he recently mentioned that it would be arrogant to the cryptocurrency community to believe that any of the altcoins they hold will only be able to replace fiat.
The world is headed for special drawing rights with gold participating, but not a return to the gold standard
In a series of tweets on July 22, the popular commentator forecast that in the future, the world will resort to so-called special drawing rights (SDRs) based on multiple fiat currencies. A return to the gold standard will not occur while the SDR setup would likewise not include Bitcoin or altcoins.
SDRs were created by the International Monetary Fund (IMF) in the late 1960s as an extension to member states’ reserves. At present, the equivalent of around $ 281 billion has been issued, according to the IMF’s latest official data.
According to Peter Brandt, the future SDR basket would consist of seven major fiat currencies, along with precious metals and oil:
“Prediction: World will NOT return to Gold standard. The world could adopt a formulaic ‘SDR’ global reserve unit consisting of USD, JPY, CNH, EUR, CAD, AUD, GBP, Gold, Silver, Crude Oil. Bitcoin $ BTC or other cryptos will NOT be part of the basket.”
Gold continues to shoot for higher highs after lingering at its best levels since 2011. Silver is also at multi-year highs.
Brandt, however, cast suspicion on those who see Bitcoin as the solution which is destined to usurp fiat altogether.
“Eventually, the entire monetary system will evolve past paper fiat. But over the near-term (10 to 20 years), the only way out of debt for govts is to deflate USD. I just object to the arrogance of the crypto crowd to recognize its pet rocks will replace all fiats.”
His words come as the United States prepares to release trillions of dollars in fresh stimulus, further adding to the Federal Reserve’s balance sheet. BTC / USD appeared buoyed by the news, climbing to highs of $ 9,550 overnight on Wednesday.
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