David Schwartz, former Chief Technology Officer (CTO) of Ripple, has declared Bitcoin (BTC) a “technological dead end” and has stated that he has little intention of developing Bitcoin again. His remarks, made amidst the debate surrounding Bitcoin and Ripple’s technology and governance philosophies, are drawing significant attention from the industry. Schwartz is Ripple’s former CTO and a key figure who has been involved in the design of the XRP Ledger (XRPL) since its inception. The controversy began on February 9th on social media X, when Bram Karnstein argued that XRP’s initial “genesis reset” was “a prime example of the centralization of cryptocurrencies.” He viewed XRP’s 32,750th block as the de facto starting point, and criticized it, saying, “The fact that it is treated as such even though it is not the true ‘genesis block’ reveals the centralized nature of ‘CrYpTO.’” In response, Schwartz shifted the focus of the debate to Bitcoin. He countered, “There have been at least two instances in Bitcoin where it was much more centralized than this,” adding, “In particular, it’s important to note that, unlike the XRP case, it wasn’t a decision to ‘collectively fix something,’ but rather a decision to just accept the problem as it is.” When one X user asked, “Are you talking about that kind of protocol change?” using the introduction of Segregated Witness (SegWit), Schwartz drew the line, saying, “SegWit wasn’t in the first place.” He added, “I don’t view the act of adding a new feature in itself as evidence of centralization,” but “I guess you could argue that.” Instead, the biggest example he pointed to was Bitcoin’s “rollback” action in 2010. At that time, the Bitcoin network had overissued due to a critical bug, and developers and the community agreed to roll back the chain to its previous state. The direction of the debate changed on February 10th. When another X user, Khalid Elwadi, asked Schwartz, “Since co-designing the XRP Ledger, have you ever considered or participated in Bitcoin development again?” Schwartz’s “current priorities” were revealed. He gave a short “Not really” before going into detail about his view that Bitcoin as an asset is more dependent on social and monetary inertia than technological evolution. “I think Bitcoin, like the dollar, has largely reached a technological dead end,” Schwartz said. He added, “At least at the blockchain layer, technology doesn’t seem to be that important to its success.” His comments suggest that Bitcoin is no longer a project that relies on “core technological innovation” for growth, but rather is closer to an established monetary standard, like the dollar. This is why Schwartz equates Bitcoin with the dollar. He recognizes that the success of a token depends on social factors like network effects, liquidity, and trust, not on the subtle technological advancements at the base layer. These remarks align with the recurring "centralization vs. decentralization" debate surrounding the XRP Ledger. Bitcoin supporters have criticized XRPL's early structure and Ripple's influence, claiming it is "far more centralized than Bitcoin." Schwartz has now established a counterargument, citing past examples like "Bitcoin also experienced strong coordination and intervention in its early days, and at certain moments, even more centralized decision-making." While acknowledging Bitcoin's "technical stagnation," he draws a curious line, arguing that this doesn't necessarily mean failure. Schwartz believes Bitcoin is no longer significantly impacted by the pace of evolution as an engineering challenge. Having already established itself as a global asset, he assumes future changes will primarily occur in the surrounding ecosystem, including Layer 2 solutions, financial infrastructure, and regulatory environments. Conversely, he continues to view the XRP Ledger as an "engineering laboratory." After stepping down as Ripple CTO, Schwartz announced that he would pursue his own project on top of the XRP Ledger. While XRP's smart contracts, advancement of payment infrastructure, and expansion of support for tokenized assets are being discussed as next-generation growth engines, he seems to have chosen the path of "we need to further change the base layer technology and create new uses." This debate has once again highlighted the philosophical differences between the two protocols, Bitcoin and XRP. While Bitcoin is a currency standard that prioritizes "preservation over change," the XRP Ledger is closer to a practical infrastructure that emphasizes "continuous functional expansion." Rather than being hostile to Bitcoin, Schwartz's remarks are closer to a realistic diagnosis that the roles of the two have already diverged. As of the time of reporting, the price of XRP was trading at $1.38 (about 1,992 won). This is a section that has fallen below the 200-week exponential moving average (EMA), one of the long-term moving averages, and technical indicators indicate that it is still in a bearish phase. However, as Schwartz mentioned, the market's attention is focused on how Bitcoin and XRP Ledger will differentiate themselves in the long term on different paths of 'technological development' and 'currency standard'.
💡 "Technological Dead End vs. Evolving Layers… The Answer Lies in 'Educated Investors'"
David Schwartz's assessment that Bitcoin, like the dollar, has reached a "technical dead end" further sharpens the contrast with protocols like the XRP Ledger, which are constantly expanding their capabilities.
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🔎 Market Interpretation
Former Ripple CTO David Schwartz has characterized Bitcoin as an asset that has reached a "technological dead end" similar to the dollar, relying on its established monetary status and network effects rather than on core technological innovation.
He countered criticisms of centralization targeting the early days of the XRP Ledger's "Genesis Reset," pointing out that Bitcoin also had stronger levels of centralized decision-making, such as chain rollbacks during the over-issuance bug in 2010.
This statement has once again highlighted the difference in protocol philosophies: Bitcoin is a global currency standard that values "preservation over change," while XRP Ledger is a practical infrastructure that aims for "continuous functional expansion."
💡 Strategy Points
1) Bitcoin Positioning: Schwartz's perspective reinforces his reinterpretation of Bitcoin as more akin to a "digital reserve currency/digital gold" rather than a high-growth technology stock. Rather than short-term technological upgrades, attention should be paid to regulatory acceptance, institutional adoption, and the pace of integration into the financial infrastructure.
2) XRP/Altcoin Perspective: The XRP Ledger is more like an "engineering laboratory" that creates new use cases through functional expansions such as smart contracts, payment infrastructure, and tokenization. Closely tracking changes in the technology roadmap, developer ecosystem, and governance structure is emerging as a key variable in investment decisions.
3) Centralization and Governance Risk: The fact that both Bitcoin and XRP experienced significant human intervention in their early days serves as a reminder that no chain begins with complete decentralization. A risk-based approach is needed, considering protocol change criteria, community consensus procedures, and reliance on a small number of developers and companies.
4) Layer 2 and the surrounding ecosystem: As Schwartz points out, while the room for change at the Bitcoin base layer may be limited, innovations on the “upstream and sidelines”—such as Layer 2 (e.g., Lightning, sidechains), derivatives markets, and custody and payment infrastructure—can directly impact price and demand.
5) Recognize the price-technology gap: Although XRP is in a bearish zone trading below the 200-week EMA, there is a possibility of a mid- to long-term re-rating depending on technological scalability and regulatory/infrastructure changes. Therefore, it is necessary to separate the price chart from the technology/governance fundamentals.
📘 Glossary
· Genesis Block / Genesis Reset: The very first block on a blockchain is called the "genesis block," and resetting it with a different block is called a genesis reset. The XRP Ledger, which designated block 32,750 as its de facto starting point, sparked controversy over centralization.
· Rollback: A measure to revert the blockchain state to a specific point in time in the past when a network error or critical bug occurs. Bitcoin implemented a rollback through community consensus during the 2010 over-issuance bug.
· Segregated Witness (SegWit): A protocol upgrade introduced to Bitcoin that changed the transaction data structure to improve block capacity utilization and enhance security and flexibility. Some have debated whether this upgrade constitutes a "centralized decision."
· Base Layer / Layer 2: The base layer refers to the most basic main blockchain, such as Bitcoin and XRP Ledger, and Layer 2 refers to a separate auxiliary network built on top of this to improve speed, fees, and functions.
· 200-week exponential moving average (EMA): This long-term technical indicator averages prices over the past 200 weeks using an exponential weighting system. A current price below the 200-week EMA is typically interpreted as a sign of long-term weakness and undervaluation. However, any discrepancy with fundamentals should also be considered.
💡 Frequently Asked Questions (FAQ)
Q.
Does David Schwartz's statement that "Bitcoin is a technological dead end" mean that Bitcoin is dead?
Schwartz used this expression to indicate that Bitcoin has reached a point where it no longer relies heavily on core technological innovation. In other words, like the dollar, it has already become an asset close to a global monetary standard, allowing it to maintain its functionality thanks to network effects and trust, even without rapid changes in base-layer technology. Rather than implying Bitcoin's failure, his interpretation is closer to interpreting its role as a shift from a "technological experiment" to a "conservative store of value."
Q.
What are the differences between XRP Ledger and Bitcoin in terms of centralization and decentralization?
Bitcoin has a decentralized network of miners and nodes, and its standards for protocol changes are very conservative, making it relatively "change-resistant." However, in its early days, there was significant developer and community intervention, such as the 2010 rollback. The XRP Ledger has been criticized for its reliance on corporations and selected validators due to its consensus algorithm and node structure, and the Genesis Reset incident has also been cited as evidence of centralization. Schwartz argues that it's difficult to draw a completely black-and-white conclusion, citing the fact that Bitcoin also experienced this type of early intervention.
Q.
How can investors apply this argument to their practical investment strategies?
Bitcoin, rather than being a "technology growth stock," can be viewed as a digital reserve currency and store of value, making it more sensitive to regulatory acceptance, institutional adoption, and macroeconomic factors (interest rates, liquidity). In contrast, platform coins like XRP can have a greater impact on their valuation due to technological roadmaps, developer activity, expanded use cases, and governance changes. Therefore, when constructing a portfolio, a strategy that appropriately balances risk is appropriate: Bitcoin as a long-term core asset, while XRPL-based coins and other altcoins are considered "risk assets/growth options" with significant technological and regulatory risks.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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