Virtual asset educator emphasizes 'lifetime' holding of XRP..."absolute asset without property tax"

▲ XRP/AI-generated image

Virtual asset educator and influencer Coach JV explained the actual maintenance costs associated with long-term holding of XRP, comparing them to traditional real assets. Unlike houses or cars, cryptocurrencies do not incur recurring holding costs such as property taxes or registration fees, which is a strong competitive advantage from a long-term investment perspective.

According to The Crypto Basic, a virtual asset and finance specialized media outlet, on September 28 (local time), Coach JV, who has approximately 293,000 X (formerly Twitter) followers, cited the long-term holding cost structure as a key reason for consistently buying Bitcoin (BTC) and XRP. Coach JV stated, "Even if you pay off your car loan, you still have to pay registration fees every year, and even if you pay off your home mortgage, you still have to pay property taxes every year. Debts may disappear, but obligations remain. This is why I buy Bitcoin and XRP. My house and car incur continuous costs just by owning and maintaining them."

The logic is that one should consider the costs of holding an asset permanently, beyond just the initial purchase price. In the case of real estate or cars, even if loans are paid off, fixed expenditures such as taxes, registration fees, insurance premiums, and maintenance costs continue to occur. In contrast, the XRP Ledger does not impose annual property tax-like maintenance costs simply for holding assets in a wallet.

Self-custody, where assets are held directly in a personal wallet, does not mean a completely cost-free state. The current XRP Ledger protocol requires a base reserve of 1 XRP to activate and maintain an account. This reserve is not an annual fee that is consumed, but rather a collateral that is locked as long as the account exists, and it can be adjusted through future validator votes. Furthermore, while a standard minimum fee of 10 drops (0.00001 XRP) is burned each time a transaction is sent, no additional fees are incurred if assets are merely held without being moved.

For general investors using centralized exchanges, the burden of account reserves is also absent. Exchanges manage the assets of numerous customers by consolidating them into a shared wallet, so individual users do not need to directly bear the 1 XRP base reserve. However, ancillary costs may arise depending on individual choices, such as hardware wallet purchases, security management, or service fees, but these are distinct from holding fees directly imposed by the blockchain protocol.

Compared to the chronic maintenance costs of physical assets, the low-cost long-term holding structure of cryptocurrencies is being highlighted. The characteristic of XRP, which incurs no additional holding expenditures apart from initial purchase costs and security responsibilities, serves as a core argument supporting the investment sentiment of long-term holders.

[Key Article Summary]

-Coach JV emphasized that unlike real estate and cars, XRP does not have recurring holding costs such as property taxes or registration fees.

-The XRP Ledger does not impose annual fees, and only a 1 XRP account reserve is frozen as collateral for self-custody.

-Excluding the burning of a small transaction fee (0.00001 XRP) per transaction, there are no protocol costs incurred for permanently holding assets.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*