Financial pundit labels XRP ‘slave coin,’ rift grows between Ripple and Bitcoin communities

Bitcoin and financial pundit Rajat Soni has once more expressed disapproval of XRP by labeling it a “slave coin.” His statement came amid conversations regarding the application of XRP by organizations like banks for various financial purposes.  

Soni is worried about the link between XRP and Ripple – a company that works with governments and financial institutions on Central Bank Digital Currencies (CBDCs) projects known for granting banks more control over individuals’ finances and restricting financial freedom.

Soni champions Bitcoin as a decentralized alternative to XRP and CBDCs 

XRP has been praised for its ability to speed up cross-border payments; however, critics like Soni caution that this could strengthen the control of centralized financial systems at the expense of other aspects. 

Soni believes Bitcoin is a choice that gives individuals the power to break free from the influence of big institutions and central banks. He has consistently argued that Bitcoin’s decentralized aspect makes it a preferable option for those looking for financial freedom.

Soni’s latest remarks extend his longstanding criticism of XRP. The Bitcoin maximalist has previously described XRP as a “scam coin”. Soni argued that XRP stands little chance of adoption by financial institutions, asserting that banks will opt for Bitcoin over XRP. 

XRP is a scam.

Banks will never use XRP.

They will use some form of USD or #Bitcoin

Let me explain:— Rajat Soni, CFA (@rajatsonifnance) December 18, 2023

In a statement, Soni said XRP’s value could be worthless if it is banned in the United States and highlighted its lack of widespread use worldwide as a concern. He advises people to be cautious about investing in XRP as their expectations of banks embracing it may not match the situation. 

The Bitcoin community echoes Soni’s XRP criticism 

Other prominent figures in the Bitcoin community have echoed Soni’s criticism of XRP. “Sensei BTC,” in a discussion on X, underscored Bitcoin’s more robust price performance over XRP, using expletives when he suggested that newcomers steer clear of investing in the latter.

The supporters of XRP have continuously challenged the criticisms of Bitcoin maximalists by asserting that XRP presents benefits and could substantially impact the finance landscape in the future. 

Interestingly, pro-XRP YouTuber Zach Rector recently made a case for XRP against Bitcoin. He believes that the former is the future of finance and not the flagship crypto token. One thing he alluded to was the increasing transaction fees on the Bitcoin network and how that was going to affect its utility. 

Bitcoin has seen a spike in fees and transactions in recent months. This has been driven primarily by the introduction of Inscriptions (related to Bitcoin Ordinals) and Runes. These developments have increased the demand for block space, contributing to the rise in transaction costs on the Bitcoin network. This is unlike XRP, which has a relatively cheaper average transaction fee.