Bitcoin vs Ripple
Overview
Bitcoin and Ripple are, without a doubt, two of the most well-known cryptocurrency networks in the space today. Their native coins, BTC for Bitcoin and XRP for Ripple, are also two of the top cryptocurrencies by market capitalization as of writing.
If you are looking to diversify your cryptocurrency portfolio beyond Bitcoin, XRP is a good place to start as the project behind it provides a different take on the concept of digital currencies.
At its core, Ripple is both a cryptocurrency in the form of XRP and a payment settlement platform in the form of the other products they are developing such as RippleX.
Ripple’s main functions are currency exchange, remittances, and international payments, and they offer a more secure, transparent, efficient, and cheaper alternative to the current transfer systems being used by banks such as the SWIFT payment system.
On the other hand, Bitcoin is solely a digital currency that was created as a decentralized means of payment for goods and services. It was launched in 2009 by its unknown creator who calls himself Satoshi Nakamoto.
Ripple is founded by Chris Larsen and Jed McCaleb and was launched in 2012, but unlike Bitcoin which uses blockchain technology, Ripple uses a consensus ledger and a network of validating servers, together with its native coin XRP, to facilitate transfers.
BTC and XRP at a Glance
| Bitcoin (BTC) | Ripple (XRP) | |
|---|---|---|
| Year Launched | 2009 | 2012 |
| Founders | Satoshi Nakamoto | Jed McCaleb, Arthur Britto, David Schwartz |
| Smallest Unit | Satoshi | Drop |
| Max Supply | 21,000,000 BTC | 100,000,000,000 XRP |
| 2021 Price Growth | 470.9% | 364.7% |
| All-Time High | $67,276.79 (as of October 20, 2021) | $3.40 (as of January 7, 2018) |
| All-Time Low | $67.81 (as of July 6, 2013) | $0.003 (as of May 22, 2014 |
| Market Cap | $1.26 trillion | $53.4 billion |
Comparison Between Bitcoin and Ripple
When it comes to their supply, Bitcoin has a finite amount set at 21 million BTC, where new Bitcoin can only be generated through a process called mining.
Ripple is different in that it already has a pre-mined supply of 100 billion XRP when it was first launched. Besides those that are already in circulation, Ripple currently holds 55% of all XRP coins.
As to the transaction speed, Ripple allows for low cost and high-speed currency exchange, payment settlements, and remittances within, while Bitcoin is focused more on its resistance to censorship and centralization, with transactions taking around 10 minutes on average.
To put things into perspective, you can think of Ripple and Bitcoin this way – if you live in another country and want to send money to your family back home, you can use XRP to transfer the amount in a faster and more cost-effective way compared to doing it directly through banks. You can simply exchange your fiat money to XRP and send the XRP to your family.
Meanwhile, if you see something that you want to buy online, you can transfer Bitcoin directly from your wallet to the vendor’s wallet instead of paying the amount from your bank through your debit card.
As of October 20, 2021, XRP is trading at $1.14 sits at #6 on the CoinGecko cryptocurrency charts in terms of market capitalization at $53.4 billion. On the same date, Bitcoin has reached a new all-time high of $67,276, with a market capitalization of $1.26 trillion.
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