Nowadays, cryptocurrencies are popular in our life and people profit or lose money by trading various digital assets in the market. The most well-known cryptocurrency is Bitcoin. However, as time passed by, Ripple is one of the increasingly gaining popularity of coins among investors all over the world. Ripple VS Bitcoin is now a hot tag on the Internet.
Today, we are going to figure out what are the main differences between Bitcoin and Ripple, and which one is worth investing in?
Table of Contents
Ripple VS Bitcoin: Five-main difference
Ripple is the name of a company and XRP is its native cryptocurrency. Its leaders are committed to creating a decentralized payment system that speeds up transactions among different currencies between individuals as well as financial institutions like banks as well as lowers the processing fee during the transaction.
On the contrary, Bitcoin is a digital currency that can be used to pay for goods and services. It is one of the payment methods within traditional and innovative payment systems. Bitcoin provides a democratic and decentralized approach to people for fast transactions.
1. Mining & Supply
How were Ripple and Bitcoin created? Actually, XRP is pre-mined that it was issued by the Ripple Labs with the amount of 100 billion, and more than 46 billion is in circulation by now. The rest of the XRP is held by Ripple Labs and will be periodically released based on their rules.
Bitcoin, however, is mined by anyone that is able to solve mathematical puzzles with powerful computing. It is worth noting that the supply of Bitcoin is limited to 21 million, which has helped generate investors’ interest in its potential as a store of value.
2. Transaction Speed
Ripple aims to offer a fast and cheap transaction. It just takes an average of 5 seconds for an XRP transaction to complete. In comparison, it could take 10 minutes on average for a Bitcoin transaction to complete.
Bitcoin and blockchain are twins that every time we think of blockchain, we have Bitcoin in our mind. Yes, Bitcoin is powered by blockchain technology – a shared public ledger that includes all confirmed transactions, and the mining concept (proof-of-work) to validate transactions. In this way, the energy consumption of Bitcoin technology is relatively large since it has a high command of computing power.
Differently, Ripple is not a blockchain-based platform that utilizes a distributed ledger technology known as ripple protocol consensus algorithm (RPCA) as well as a network of validating servers to confirm transactions. The RPCA provides Ripple with its fast transaction speeds, which only select few people to handle transactions within Ripple’s decentralized ledger.
The original purpose for Ripple is to function as a payment settlement system. And it does do better than Bitcoin in regards to efficiency and speed. It could take much more time for Bitcoin to confirm a transaction, especially when the congestion on the network is busy. Meanwhile, the processing fees for the transaction will be dependent on the level of congestion.
Bitcoin is a cryptocurrency that involves no third parties and the speed of its birth depends on the miners. It applies for various purposes like paying for food, hotels, etc.
Bitcoin was created by a mysterious person or a group of people called Satoshi Nakamoto. And those enthusiastic developers are maintaining it. The Bitcoin network is a decentralized system and is not belong to any bank, government, or third party.
Ripple is a private company that was founded in 2012. And the company controls and holds most of the XRP cryptocurrency.
|Transaction speed||within 5 seconds||more than 10 minutes|
|Supply||100 Billion||21 million|
Ripple VS Bitcoin: Price Prediction
As an investor, you may ask, how high will bitcoin go or how high will xrp go. In this section, we will discuss the price of both cryptocurrencies.
1. Bitcoin Price History and XRP Price History
Since Bitcoin is the first coin in 2009 that gained the most attention and Bitcoin’s first peak came in 2013 and the all-time high then was $1,200. But it soon lost momentum and fell to $300. Four years later, Bitcoin welcomed its second bull rally and reached $20,000. No surprise that the price of Bitcoin dropped to $10,000 in 2018 and started the sideways trading mode for 2 years. The crypto market was still in the groping stage.
On March 13th, 2020, the price of Bitcoin was sharply down below $4,500 from $7,960. With the government printing more money to and the continual institutional interest and FOMO pushed Bitcoin’s price up and it reached $24,000 by the end of 2020. On April 14th, 2021, Bitcoin skyrocketed to $64,814. At the time of writing, one Bitcoin is worth about $37,800.
XRP is a kind of new coin if comparing with the leading coin. Its price was always low between $0.1- $0.4 until the burst in 2018 that set an all-time high at $3.7502 on January 4. Regarding the well-known SEC lawsuit, it is worth noting that it has a boost to the price of XRP from the beginning-low $0.17 to almost skyrocket $2 with the development of the case. At the time of writing, the XRP is worth $0.8 per coin.
2. Price Prediction
If you type “how much is bitcoin worth” or “how much is xrp worth” on Google, you will also find the questions that can bitcoin or xrp reach $X. Many analysts predict that the price of Bitcoin could reach over $1 million while XRP could go up to $200-$300 by 2030. With the development of diversity of investment portfolios, cryptocurrencies have received more and more attention from individuals or the institutions. In the long run, the price of both Bitcoin and XRP could reach a new level.
Ripple VS Bitcoin: Purchase
If you want to know how to buy Bitcoin or how to buy XRP, keep reading. It is easy to buy Bitcoin for its reputation. You can buy bitcoin via exchanges with your debit card and credit card. Worth noting that Paypal began to offer bitcoin buying and selling services in 2020, but you need to have a PayPal account first.
Though XRP has been delisted from many crypto exchanges due to the lawsuit filed by the SEC in December 2020, you can still purchase XRP on various exchanges or platforms like Kraken, Bitstamp, and Crypto.com.
Ripple VS Bitcoin: What Is The Best Investment?
You may ask, is Bitcoin a good investment, or is XRP a good investment. This should not be a confusing question to investors now since they both have potential value in the market as digital assets. Both Ripple and Bitcoin offer high ROI potential to their investors no matter whether they are individuals or institutions.
Just take a brief review of the past price charts, it’s easy to find that Bitcoin has definitely outperformed XRP in terms of ROI. However, with the growth of Ripple’s Network, the price of XRP could have a great difference if this project does well in the future.
Since it is an investment in cryptocurrency and the market is volatile. Investors should always do their own research before diving into the crypto market.
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