Ripple CTO Clarifies Unexpected Bitcoin Post: Details
Ripple CTO, David Schwartz, recently posted some surprising thoughts about Bitcoin and clarified his crypto holding and selling strategies. In an insightful post, Schwartz mentioned, "When I was long Bitcoin, I sold when I needed anything — to pay taxes, to buy a new computer, and so on," which sheds light on how he manages his investments.
Early Bitcoin Investors’ Behavior
Schwartz shared his personal experience with Bitcoin from its early days, highlighting how many early investors handled their crypto. He noted that during Bitcoin's first major bull run, many companies began accepting Bitcoin as payment. This led early miners and buyers to sell their Bitcoin to cover real-world expenses. He stated, "More and more companies were taking Bitcoin during the first big bull run precisely because this was what everyone long (early miners/buyers) was doing."
The Discussion on Being "Long" on Bitcoin
To stir up the conversation, Schwartz had earlier posed an interesting scenario involving two hypothetical Bitcoin holders: Alice, who has sold a lot of Bitcoin recently, and Bill, who has not sold any. He questioned, "Which is more likely to be very long Bitcoin?" This sparked a lengthy discussion on X (formerly Twitter), focusing on what it truly means to be "long" on a cryptocurrency.
Responding to the buzz his post created, Schwartz explained, "The whole time you are slowly both acquiring and selling, you are long. Someone who constantly keeps selling a lot must either be very long or constantly buying." He agreed that when all holdings are sold, it represents an exit from being "long."
Insights on Schwartz’s Holdings
As previously covered, Schwartz has been open about his cryptocurrencies. He confessed that he had sold some Bitcoin (BTC) in the past. At one point, his holdings peaked at around 26 million XRP.
This explanation by the Ripple CTO provides a clear view of his strategy involving both acquisition and liquidation based on needs, reflecting practices common among early crypto investors.
