The cryptocurrency industry is on the rise, with bright future being the main motto of the investors and businesses involved in. The choice of what to invest in is a tough one among all available cryptocurrencies. Thus, we made this review concerning two most popular cryptos out there – Ripple and Bitcoin.
In this Ripple vs Bitcoin article, we aim to investigate which is currently a better option. We will go through value, volume, market orientation, technical specifications and exchanges that endorse these two coins. The main focus of this article shall be on Ripple.
General Information about Ripple
In 2012, Jed McCaleb and Chris Larsen created a new cryptocurrency called Ripple. The main goal was to improve the banking transaction system. The new coin would be purchased in exchange for fiat currencies, providing a new median for transfers around the world for banks.
The coin is a sole property of the Ripple Company, making this coin centralized in its very nature. You can check out the company’s website, as shown in the picture below.
During the development stages, the coin gradually reached general public as well, listing itself in many exchanges in the process. The main business targets are still banks but now, traders like you can also purchase and sell Ripple. The abbreviation of the Ripple native currency is XRP.
Value and Volume
Before we start with comparison analysis with bitcoin, it is crucial to mention that mining is not possible for Ripple. The coin can only be purchased and sold, using different exchanges in the process. Bitcoins are still available for miners, even though the difficulty increased in recent years. Thus, the coin’s volume and value depends solely on the ability of the company to market the coin.
Armed with that knowledge, the analysis would produce quite different results. The total market cap of the Ripple now stands at 100 billion coins, with 55 billion being held in escrow service to fight against inflation. Bitcoin, on the other hand, will only have 21 million coins circulating the market.
The price movements has been volatile, as Ripple, much like many other coins, followed bitcoin’s lead. The value of bitcoin currently stands at approximately $18.000 while Ripple is expressed in $2.6 per coin. Below you can check out the price tables (source finder, checked with XPR charts), prove the point.
Thus, the industry value of bitcoin currently stands at $378 billion while XPR without escrow supply stands at $117 billion. The South Korean exchange Bithumb has both the greatest volumes and the highest exchange price in January 2018. Bitfinex has the greatest XRP/USD volume, Binance has the greatest XRP/BTC volume followed by Bittrex, Poloniex and HitBTC.
Technical Specifications’ Comparison
To start off, being a centralized coin, XPR cannot be mined nor can they be supplied outside of the Ripple Company. Thus, mining difficulty, equipment and other factors of analysis concerning the creation of the coin cannot be matched with bitcoins, which are purely decentralized.
What can be matched are transaction time, costs, energy consumption, inflation rates and processing algorithm.
Ripple Transaction Time
The bitcoin transfers need several confirmations, depending on the volume sent. Thus, the average time according to the multiple sources stands between an hour and a day currently. This depends on the fee chosen. Ripple, on the other hand, is controlled by a single entity and the transactions take a little bit more than 3 seconds.
Ripple Transaction Cost
The transaction costs of the XPR are a lot lower than those of bitcoins. Ripple charges approximately $0.004 while bitcoin charges around $40, as we speak. The fee for Ripple remains relatively stable, while BTC experienced an increase in its network expenses, especially in the past few months.
Ripple Energy Consumption
Energy consumption of the Ripple is inconsequential to the world, as all of the coins have been either released or held in escrow service by the company. With controlled mining environment, the coin does not take almost any effort to be transferred around the world. Bitcoin is a different story, with latest news reports stating that energy consumption of mine and use bitcoins, rose above Ireland’s consumption.
Controlling price inflations is a perk of Ripple, something that bitcoin is trying desperately to achieve as well. Due to the escrow service, the number of coins is effectively keeping the value of Ripple in the reasonable margin, though that is not the main reason for stability. The transaction costs incurred through transfers do not take money from you. They eat out the XPR instead, lowering down the total supply of the coin in the process.
The processing algorithm for Ripple is Consensus, a completely different blockchain technology from bitcoin’s Proof of Work (PoW). The forks in bitcoin are practically irreversible while XPR’s backward-oriented system allows customers to accept or decline changes on the coin. If the changes happen to be quite unpopular, Ripple can opt them out, returning to an original state until a solution can be improved.
In this sphere, bitcoin has an upper hand as it is meant purely for market consumption and trade. Ripple has a lot smaller number of exchanges that accept it as a trade tool but we do see a positive trend in the last few months. More and more platforms accept the coin now, with the platforms where you can buy and sell the crypto at several exchanges and you can read the review first for these platforms Bittrex, Bitstamp, Kraken, Bitfinex, Poloniex. There are also more platforms we have not reviewed yet such a GateHub, Bitso, Coincheck, Korbit, Qryptos, Coinone, BitBank, BitSane, BTC Markets, LiteBit, and Bitcoin.co. You might also read our Buy Ripple Credit Card post if you want to buy Ripple with a credit card.
These exchanges differ in terms of exchange rates, transaction fees, verification requirements and regional availability. Make sure you check them out individually before you make a choice on where to buy/sell XPR.
Putting the puzzle together for this Ripple vs Bitcoin article, we definitely deem Ripple as a prime target for your investments. But is Ripple better than BTC? Not necessarily, as these two coins differ in many aspects, much like USD and EUR for example. Both are cryptos that have their own separate target audience and have different supply strategies.
Nevertheless, Ripple definitely has a future, as it speeds up the transaction process while holding a stable value growth since its creation.