Ripple CTO Explains Bitcoin's Use in Payments Amid Price Potential: Details

Ripple CTO, David Schwartz recently addressed an interesting question in the market: the utility of cryptocurrencies in payments given the possibility of price increases in the coming days.

An X user had asked an interesting question: "Who would pay in Bitcoin knowing how much its price could rise in the future?"

The conversation began on X following Jack Dorsey's tweet, which shared Square's announcement that its Bitcoin payments were now live.

In a recent milestone, Square has launched Bitcoin payments for its 4 million U.S. merchants, allowing businesses to accept BTC with zero processing fees until 2027.

"Our sellers can now receive btc to btc, btc to fiat, fiat to btc, or fiat to fiat," Dorsey wrote. At a current price of $105,104 and the potential to even increase further, the question now posed is, "why would someone pay in Bitcoin knowing how much its price could rise in the future?"

Ripple CTO, David Schwartz responded, "everyone," adding, "You want to pay for things with the asset the person you are paying most wants to receive," highlighting this as a rationale for using crypto as payments.

Schwart added, explaining the logic behind Bitcoin price increase: "You get the full expected value of that future appreciation today when you sell/spend. That's why the price is so high now."

The Bitcoin transaction that started it all

In the early days of Bitcoin, when its value was lesser and no one quite knew what to do with the Bitcoin they were mining, software developer Laszlo Hanyecz posted a message on May 18, 2010, offering 10,000 BTC in exchange for pizza.

At the time, users could mine Bitcoin through their home computers, and Hanyecz accumulated thousands of the new coin.

Hanyecz paid 10,000 Bitcoin for two Papa John's pizzas delivered to his Florida home on May 22, 2010, which were valued $41 at the time. Now, this is worth $1.05 billion at BTC current price.

"I mean people can say I’m stupid, but it was a great deal at the time," Hanyecz said afterwards, "I don’t think anyone could have known it would take off like this."