Bitcoin Dad Outlines 5 Reasons He Believes XRP Is a Scam Coin Amid Discussions Around Its Inclusion in the U.S. Strategic Reserve

The crypto community remains divided as Bitcoin maximalists and altcoin supporters continue to clash. Recently, prominent Bitcoin advocate and online personality “Bitcoin Dad” intensified this commotion with a criticism of XRP.

Prominent Bitcoin advocate “Bitcoin Dad” has outlined five key reasons he believes XRP is a “scam coin” amid discussions about its possible inclusion in the U.S. strategic digital asset reserve.

Bitcoin Dad’s comments come as the crypto community remains divided over XRP’s potential inclusion in the reserve, following President Donald Trump’s executive order on digital assets. While the order makes no mention of XRP, most believe the token remains a potential top pick. Further, prominent crypto figure Scott Melker recently suggested that XRP was under consideration, citing reliable sources.

However, the idea that XRP could secure an inclusion in the reserve has fueled unease among Bitcoin supporters, with some actively expressing their concerns. This has triggered an extensive FUD campaign against XRP over the past few days.

Now, Bitcoin Dad has joined the fray, voicing his criticisms of XRP and its status as a meme coin or scam coin. Here are the five reasons he cited.

1. Irregular XRP Ledger Entries

Bitcoin Dad begins by highlighting irregularities in the early stages of the XRP Ledger. He points out the loss of the first 32,000 ledger entries, questioning the project’s transparency and trustworthiness.

Whether the loss was due to technical issues or deliberate action, Bitcoin Dad argues this history undermines confidence in the asset. Notably, Ripple CTO David Schwartz has addressed these concerns, stating that there was a bug with the servers.

2. XRP’s Centralization

The second reason Bitcoin Dad believes XRP is a scam coin is its centralization. He claims that XRP cannot be considered a decentralized digital asset.

According to him, Ripple and its founders control a significant portion of the token’s supply. He states that over 50% of the tokens are held by insiders, primarily through a pre-mining process.

Bitcoin Dad believes this goes against the decentralized ethos of blockchain technology. It bears mentioning that Ripple and its founders do hold a substantial amount of XRP, with the firm itself boasting 37.7 billion. However, these tokens are locked in escrow and not all accessible.

3. Regulatory Issues

Bitcoin Dad also believes the legal classification of XRP is another contentious issue. He pointed out that XRP has faced scrutiny from regulators, including the U.S. Securities and Exchange Commission (SEC).

While Ripple recently achieved a partial victory in its legal battle with the SEC, Bitcoin Dad argues that unresolved regulatory concerns still cast a shadow over the crypto asset.

4. Alleged Ripple Opposition to Bitcoin

Bitcoin Dad further accused Ripple of actively opposing Bitcoin. He highlighted a donation by Ripple Co-founder Chris Larsen to Greenpeace, which he says supported a campaign against Bitcoin’s energy consumption.

Accordingly, the Bitcoin proponent rejected the growing claims that Bitcoin mining harms the environment, instead arguing that mining can benefit energy grids. He believes this campaign was a deliberate attempt to undermine Bitcoin.

5. Ripple’s Political Influence

Lastly, Bitcoin Dad suggested that Ripple has used political influence to its advantage. He alleges that Ripple supports politicians who oppose Bitcoin and broader cryptocurrency adoption, citing Larsen’s donation to the Kamala Harris campaign last year.

It bears mentioning that despite this donation, Ripple CEO Garlinghouse was largely in support of a Trump presidency due to the regulatory challenges the firm faced under Biden. However, Bitcoin Dad claims the company only aims to foster favorable policies for XRP while limiting the growth of competing digital assets, particularly Bitcoin.