With the rise of cryptocurrencies, it can be hard to keep track of all the different tokens and coins available on the market. Bitcoin (BTC) and Ripple (XRP) are two of the most popular cryptocurrencies, but how do they compare?
History Of Bitcoin And Ripple Network
Bitcoin and Ripple have a long and complicated history. Bitcoin was created in 2009 by an anonymous person or group of people known as Satoshi Nakamoto. On the other hand, Ripple was created in 2012 by Jed McCaleb and Chris Larsen.
Bitcoin is often considered to be the first decentralized cryptocurrency. It is based on a peer-to-peer network and does not require a central authority to manage it. Transactions are verified cryptographically and recorded in a blockchain network. Bitcoin is unique in that there are a finite number of them: 21 million.
Ripple is also a decentralized cryptocurrency, but it works differently than Bitcoin. For one, Ripple doesn’t use blockchain technology. Instead, it uses something called the Ripple Protocol Consensus Ledger (RPCA) or XRP ledger. This ledger doesn’t need miners to verify transactions like Bitcoin does; instead, servers validate transactions using various algorithms.
Ripple has a cryptocurrency called XRP.
What Bitcoin Does & Why It Was Created
Bitcoin is a cryptocurrency and a payment system that was created so that people can send money on the internet. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies as well as services and products. In February 2015, around 100,000 people/businesses accepted bitcoin as payment.
What Ripple Does & Why It Was Created
Ripple’s XRP is a cryptocurrency created to be a global payment system for banks and other financial institutions. Unlike other cryptocurrencies, the Ripple network is not decentralized but instead is managed by a private company. The native currency of the Ripple network is called XRP.
Ripple was designed to be a faster and more efficient way of processing international payments. Transactions on the Ripple network settle in 4 seconds, compared to Bitcoin, which can take up to an hour.
Additionally, Ripple has very low transaction fees compared to other cryptocurrencies. Ripple added a smart contract system in which users can have an escrow account. This helps incentivize customers.
Price History Of Bitcoin
Bitcoin and Ripple have had a volatile relationship since they both entered the cryptocurrency market. When Ripple entered the market, its price was just $0.0065. At that time, Bitcoin’s price was around $100-$200. In 2017, Bitcoin’s price reached an all-time high of $19,783. In October 2022, the price of Bitcoin is currently US$19,198.74.
Price History Of Ripple
Ripple was released in 2012, and its early years were fairly uneventful in terms of price action. That changed in 2017 when the cryptocurrency started to gain mainstream attention, and its price began to rise. By the end of the year, Ripple had reached a high of $0.61.
2018 was a tough year for cryptocurrencies, and Ripple was no exception. The prices of all digital assets slumped, and Ripple fell to a low of $0.24 by December 2018.
2019 has been a much better year for Ripple so far. The price started to rebound in April and has been on an upward trend ever since. In September 2019, Ripple was trading at $0.29. In October 2022, the price was $0.46.
Market Cap Of Bitcoin
When it comes to market capitalization, Bitcoin remains the clear leader in the cryptocurrency space. With a market cap of over $368 billion (In October 2022), BTC is nearly double the size of its closest competitor, XRP cryptocurrency.
This shouldn’t come as too much of a surprise, as Bitcoin has been the dominant cryptocurrency for years now. BTC’s popularity and early mover advantage have helped it build up a large network of users and miners, making it more valuable than other digital assets.
Market Cap Of Ripple
Regarding Ripple’s market cap, it is important to note that XRP is not currently mined. This is because all 100 billion XRP that will ever exist were created when Ripple Labs launched the network back in 2012.
So, while the market cap of Bitcoin is determined by the current supply multiplied by the price per BTC, the market cap of Ripple is solely based on the current price of XRP.
At the time of writing, the market cap of Ripple is $13,074,020,592. This puts it in third place behind Bitcoin and Ethereum, which have market caps of $184,073,529,972 and $29,203,396,265, respectively.
Main Similarities Between Ripple vs. Bitcoin
- Bitcoin and Ripple are both digital currencies that can be used to purchase goods and services. Bitcoin is the more popular of the two, with a larger market cap and more media attention.
- Both Ripple and Bitcoin have a limited supply, but Ripple has a much higher total supply than Bitcoin.
- Both currencies are decentralized and use peer-to-peer technology. However, Ripple is faster and cheaper to use than Bitcoin.
Main Differences Between Ripple vs. Bitcoin
- Bitcoin is a decentralized currency, while Ripple is a centralized one. What this means is that with Bitcoin, there is no middleman that controls the currency, while Ripple is controlled by a central organization. This difference has implications for how each currency is used and traded.
- Bitcoin is created through a process called “mining,” in which compu solve complex mathematical problems in order to earn new Bitcoins. On the other hand, Ripple is not mined but rather created by the Ripple company. This difference again has implications for how each currency works and is traded.
- Finally, another key distinction between Bitcoin and Ripple are their transaction and network speeds. Bitcoin transactions can take up to 10 minutes to be processed, while Ripple transactions are almost instantaneous. This difference is due to the different ways in which each currency verifies transactions. Again, this has implications for how each currency can be used.
Risks Of Bitcoin And Ripple
Bitcoin Risks: One of the biggest risks is its volatility. The price of Bitcoin can fluctuate quite massively, and this can make it difficult to use as a currency. Additionally, Bitcoin is not backed by any government or central bank, which means that there is no one to guarantee its value.
Finally, because Bitcoin is a decentralized system, there is no customer service or support if something goes wrong.
Ripple Risks: Ripple is very volatile and has been known to fluctuate rapidly. Ripple is not yet as widely adopted as some other cryptocurrencies, which means it may be more difficult to find buyers or sellers when you want to trade Ripple.
Ripple is still a new technology, and there is always the potential for technical problems or hacks that could undermine the value of your investment.
Where You Can Buy Each Of Them
Bitcoin and Ripple are both available for purchase on a variety of exchanges. Some of the most popular exchanges for buying Bitcoin include Coinbase, Kraken, and Bitstamp. For Ripple, some popular exchanges include Binance, Kraken, and GateHub.
There are multiple different currencies available on exchange platforms and payment networks.
How Can You Exchange One For The Other?
The most common way to exchange one cryptocurrency for another is through a digital currency exchange platform. These platforms also directly match buyers and sellers without needing a third party. When exchanging cryptocurrencies, it is important to remember that you are effectively dealing with digital cash.
Check out the currency exchange fees when searching through the currency exchanges. It’s also good to note that there are around 61 Japanese banks that are implementing applications utilizing the Ripple Network payment system.
Future Plans For Ripple And Bitcoin Comparison
Future plans for Bitcoin
Bitcoin plans to keep improving the efficiency of its network by implementing more powerful hardware. The goal is to make Bitcoin the world’s most accessible and widely used digital currency.
Future plans for Ripple
Looking to the future, Ripple has some very ambitious plans. The company wants to become the “internet of value” and a global network that allows money to be sent and received instantly, anywhere in the world. To do this, Ripple is working on a number of fronts.
First, the company is continuing to build out its network of banks that are using its technology. Second, it is working on expanding the use cases for its technology beyond just payments.
Third, and perhaps most importantly, Ripple is investing heavily in research and development to continue to innovate and evolve its technology. This includes basic research into blockchain and distributed ledger technology and applied research into how these technologies can be used to solve real-world problems.
All this work takes time, but the rewards could be huge if Ripple succeeds. Not only would it transform the way money moves around the world, but it could also boost the global economy by making it easier for businesses to trade with each other.
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