Ripple and Bitcoin are the two most famous digital currencies, but how do we know who is better among the two? In this article, we will do a Ripple vs Bitcoin comparison with some Bitcoin and Ripple news.
In a nutshell, Bitcoin has been formulated to be a P2P digital currency while Ripple aims to make international transactions faster and cheaper for banks. Even though Bitcoin can also be used on transacting internationally, and ripple can also be used for P2P transactions, the desired responsibility of Bitcoin remains the P2P case and Ripple the bank payment.
Ripple Vs Bitcoin: Transaction Fees And Speed
Apart from the varied intended used scenarios of BTC and XRP that have been mentioned above, another primary difference between Ripple cryptocurrency and Bitcoin is their transaction fees. Indeed, for banks who wish to navigate money internationally, Ripple is cheaper. If you have ever transacted money abroad, you will know that it is often costly, since the money is transferred through the hands of several middlemen like banks, before it finally reaches the recipients.
In that respect, the transaction cost of Ripple is next to nothing as it is taken at an average of $0.0001. This is very appealing or the banks who transfer huge amounts of money every day, often at a huge cost.
While the transaction cost of Bitcoin is also low at an average of $0.50, this fee is higher when compared to Ripple. However, during heavy transfer times, the transaction cost of Bitcoin increases to as high as $55.16 for every transaction.
Now coming to the transaction speed, this is another important difference between the two. The transaction time of B bitcoin is 10 minutes on an average while Ripple takes just a few seconds to conduct a transaction. Here as well, compared to Bitcoin, Ripple is the winner. However, when compared to the financial banking system, a few seconds and 10 minutes are both still very fast.
Ripple Vs Bitcoin: Security
Bitcoin, the original digital currency was anticipated as a decentralized, P2P cryptocurrency not controlled by a government or bank. Still today Bitcoin remains decentralized with users or miners who validate the transactions of Bitcoin using matured computer hardware that is spread throughout the globe. Developers who work on the core energy of Bitcoin along with computers or nodes that keep the copies of the blockchain of Bitcoin or record the transactions are also distributed globally.
However, the case is not the same with Ripple. Ripple transactions are validated by only a few validators. Moreover, it is operated by a company that has the ultimate decision making power as to what occurs with the Ripple network. This implies that the users will have to place a lot of trust in Ripple and its chosen validators to function in the network’s interest as opposed to their own. This of course defeats the aim of decentralized digital currencies, which is not having trust that a single institution like the corporation or government won’t misuse their power for their own good. And even if the malicious potential intent is kept aside, the other reason of concern is that if something happens to the company like the company’s exit from the business would badly harm the XRP and will kill it completely. Take out a Bitcoin node, developer, or miner, and Bitcoin lives on it.
Ripple Vs Bitcoin: Price
Apart from decentralization, another major difference is the Bitcoin and Ripple price. According to the present Ripple vs Bitcoin chart, ripple and Bitcoin are the two most popular and biggest assets by market cap. But their varied total asset supplies account for the massive disparity in price among XRP and BTC.
There are only 21 million Bitcoins compared to Ripple which is 100 billion. This implies that the XRP’s market cap spreads across 4,761.9 times XRP than BTC, which makes the price of each XRP unit much lower than BTC.
So this is the point to answer the question of who is better in Ripple vs Bitcoin? So the verdict is not direct. They both are winners but on varied grounds. So when it comes to transaction speed, transaction fees, and low price Ripple is the clear winner. But when it comes to security and decentralization, then Bitcoin is true to its origin and is a perfect example of cryptocurrency.
Therefore Ripple is best suited for financial transactions, banks, and international transactions. While on the other hand, Bitcoin is ideal for common people who want control over their own money and the way they keep it.
Frequently Asked Questions On Ripple Vs Bitcoin
1. Is Ripple better than Bitcoin?
Ripple and Bitcoin both are winners but on varied grounds. Ripple is best suited for financial transactions, banks, and international transactions. While on the other hand, Bitcoin is ideal for common people who want control over their own money and the way they keep it.
2. Is XRP a good investment?
Ripple will work best for you if you aim to navigate money internationally. To avoid the huge transaction fees, time, and to get a speedy transaction it is a very good investment.
3. Can XRP be like Bitcoin?
If you are wondering, is XRP the next Bitcoin, then this is your answer. There are only 21 million Bitcoins compared to Ripple which is 100 billion. This implies that the XRP’s market cap spreads across 4,761.9 times XRP than BTC, which makes the price of each XRP unit much lower than BTC. So XRP can never be like Bitcoin.
4. What will Ripple be worth in 2025?
The worth of XRP by the end of 2025 will be as high as $50 and as low as $8 according to the predictions.