--- title: "XRP vs BTC: Ripple's CTO Exposes a Deadly Bitcoin Flaw That Taxes Every Single User" type: "News" locale: "en" url: "https://longbridge.com/en/news/286391467.md" description: "Ripple's CTO, David Schwartz, criticizes Bitcoin's miner payment system, calling it a \"fatal\" flaw that burdens users. He argues that this model incentivizes miners to prioritize profit over user safety, creating a \"race to the bottom\" in security. Schwartz believes that Bitcoin's approach forces honest users to spend more to stay safe, while XRP's network, which avoids such rewards, leads to lower costs and faster transactions. Currently, XRP trades at $1.43, while Bitcoin is at $79,640." datetime: "2026-05-14T09:28:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286391467.md) - [en](https://longbridge.com/en/news/286391467.md) - [zh-HK](https://longbridge.com/zh-HK/news/286391467.md) --- # XRP vs BTC: Ripple's CTO Exposes a Deadly Bitcoin Flaw That Taxes Every Single User David Schwartz, the Chief Technology Officer at Ripple, the company behind XRP (**XRP-USD**), believes that the way Bitcoin (**BTC-USD**) pays its miners is a massive mistake that hurts users. On Wednesday, the creator of the XRP Ledger shared a message that is shaking the crypto world. He argues that these payments make the whole system less safe for regular people and create a "fatal" flaw in how the network functions. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks ## **David Schwartz Slams the Bitcoin Security Model** The CTO wants every person in crypto to watch a specific video from a Stanford talk. In this video, he explains that paying people to protect a network creates a "race to the bottom." He claims that Bitcoin's way of doing things is "possibly the worst imaginable security model" because it forces honest people to spend more money than attackers just to stay safe. He believes this puts a heavy tax on anyone who actually uses the network to send money. Schwartz says that because miners and stakers are only there for the money, they will do anything to increase their profits. This includes messing with transactions to squeeze extra value out of the system. He used a very direct phrase to describe this pressure: "You have to be evil or you lose." He thinks these groups do not care about the users. They only want to collect as many fees as possible from every transaction. ## **David Schwartz Removed the Reward System in XRP's Network** Ripple decided to skip these rewards back in 2012. The XRP network avoids paying people to run the system. It relies on those who actually use the technology and want it to work well. Schwartz claims this leads to lower costs and much faster speeds. There is no reason for anyone to attack the system for a payout. As of today, XRP is trading around $1.43 while Bitcoin sits near $79,640. ### Related Stocks - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [BCOR.US](https://longbridge.com/en/quote/BCOR.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [BTCHKD.VAHK](https://longbridge.com/en/quote/BTCHKD.VAHK.md) - [BTCUSD.VAHK](https://longbridge.com/en/quote/BTCUSD.VAHK.md) ## Related News & Research - [Czech central bank tests Bitcoin in reserve portfolio](https://longbridge.com/en/news/286254225.md) - [The financial boundaries of Strategies' increased BTC holdings: Can STRC continue to drive growth?](https://longbridge.com/en/news/286196820.md) - [This bitcoin price engine just turned back on](https://longbridge.com/en/news/285977397.md) - [Moon Inc. Taps BitGo to Scale Bitcoin-Powered Card Products Across Asia | BTGO Stock News](https://longbridge.com/en/news/286482460.md) - [Bitcoin Miners Will Gain From AI Deals, Bernstein Says: The Tickers To Watch](https://longbridge.com/en/news/286921195.md)