Bitcoin Vs Ripple

Bitcoin vs Ripple… when people think of cryptocurrencies, BTC and XRP are two of the first names that pop into their heads. They are two of the largest cryptocurrencies in the world by market capitalisation and trading volume. Read this 2022 Bitcoin vs Ripple comparison to learn all about the history and price of each coin, as well as the differences and similarities between the two giants’ energy use, transaction speed, fees and more. You can also check out our list of recommended BTC and XRP brokers below.

What Is Bitcoin?

The biggest in the Bitcoin vs Ripple debate, Bitcoin is a household name in the crypto world, it needs no introduction. It is the original decentralized, digital currency and it paved the way for all other cryptos. Bitcoin was first announced back in 2008 by a person or group under the pseudonym Satoshi Nakamoto. The first block, known as ‘block 0’ or the ‘genesis block’, was mined on January 3rd, 2009, and contained the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. Whether that was just proof of the date or a political commentary on the dire situation of the world’s finance is up to your interpretation.

Bitcoin had a modest start, with small price increases over the first few years. Then, in 2017, everything changed. The first crypto bubble began and prices soared. Bitcoin hit an all-time high of $19,783.06. The price dropped as the bubble burst but the trend was set. Bubbles came and went, and Bitcoin kept growing. As recently as September 2021, Bitcoin hit a whopping price of $50,128. Today’s prices can be found online with websites like CoinMarketCap.xrp vs btc (ripple versus bitcoin) graph and carbon footprint comparison

In its essence, Bitcoin is a list of transactions that are stored on something known as a blockchain. Many people think of images of coins with the stylised ‘B’ logo superimposed when they think of Bitcoin, however, these are not real. Bitcoin, and cryptocurrencies in general, have no physical form, they are purely digital. The blockchain contains lists of transactions that can be as simple as person X sent Bitcoin to person Y. This information is stored in blocks, which are verified by people known as miners.

Bitcoin is very well established and has many uses. The most popular use is for people to invest in Bitcoin as a store of value and to hope the price increases, earning profit. On top of this, Bitcoin is now an accepted form of payment for many different goods and services, including flights and holidays. One of the best signs of Bitcoin’s position and strength in the financial world is the fact that in June 2021, El Salvador became the first country to officially accept Bitcoin as legal tender.

What Is Ripple?

Next up in Bitcoin vs Ripple, XRP was first released in 2012 by co-founders Chris Larsen and Jed McCaleb. It is a technology that is designed to act as both a cryptocurrency and a digital network for financial transactions. Its main process is a payment settlement asset exchange and remittance system. This is much like the SWIFT system for international money transfer, which banks use when dealing across currencies. Ripple is an open-source, peer-to-peer decentralized platform. It allows users to transfer money seamlessly between different forms. This can be between dollars and yen, or between different cryptocurrencies like Ethereum and Cardano.

Ripple’s native currency, XRP, is used as a bridge currency between other cryptos. The crypto coin is ideal for switching between currencies as it does not discriminate between fiat currencies and cryptocurrencies. XRP itself started slowly, hitting a peak in 2018 and then dropping back down. In 2021, the value has bounced around the $1 mark.btc vs xrp (bitcoin or ripple) graph and which one is better to hold for a long time

Comparing Bitcoin vs Ripple by market cap, XRP is the sixth-largest cryptocurrency in the world. As mentioned previously, the primary use of Ripple and its native currency XRP is as a payment settlement, asset exchange and remittance system. As with many other cryptocurrencies, people also use Ripple to make money, trying to profit off fluctuations in the market. Even though Ripple was never designed to be a method of payment, a small number of companies accept XRP as a form of payment.

Bitcoin Vs Ripple Similarities

While Bitcoin vs Ripple are two very different prospects, there are some similarities:

Storage & Transactions

Bitcoin vs Ripple can both be bought on almost all cryptocurrency exchanges around. As two of the most popular and largest cryptos, you would be hard pushed to find an exchange that did not offer both. Due to this, they can both be traded in the same ways. Bitcoin and Ripple can be traded using leverage on exchanges like Kraken, where a rate of 1:5 is offered. This means that if you put down $100, you can trade with $500, allowing you to increase potential winnings. Exchanges such as Coinbase, Kraken and Binance also offer spot trading.

Following purchase, both Bitcoin vs Ripple must be stored in the same way, using hot or cold wallets can be used for either. A hot wallet is connected to the web, while a cold one is not, which makes it theoretically safer from cyber threats. Within these two categories, software wallets, hardware wallets and paper wallets can all be used to store Bitcoin and XRP.

Supply

Bitcoin vs Ripple both use the same ideology when it comes to the supply of their coins. There is a limited supply of each cryptocurrency, with the idea being that scarcity will drive the price up. Not all cryptocurrencies use this system. A good example is Ethereum, the second-largest cryptocurrency by market cap, which has placed no limit on the total number of coins that can enter circulation.

While both Bitcoin vs Ripple use this system, there is a big difference between the total number of coins of each that can enter circulation. Bitcoin limits the total number to 21 million, while Ripple’s limit is as high as 100 billion. Despite the large difference, the outcome should be the same, especially when you consider the large difference between the two’s values.

Price Correlation

When comparing Bitcoin vs Ripple, one thing noticeable is that Ripple and Bitcoin present a strong correlation in price, as is the same with a lot of cryptocurrencies and Bitcoin. As the largest cryptocurrency by value and market cap, Bitcoin has a lot of influence on the decentralized world. In many cases, including Ripple’s, other cryptocurrencies generally mirror the price movements of Bitcoin. When Bitcoin experiences a bull rush, such as often happens after one of its halving events, historical graphs show that XRP follows it and benefits in its wake. Equally, if Bitcoin receives some bad press and drops in value, XRP tends to match that trajectory as well.

Bitcoin Vs Ripple Differences

There are many differences between Bitcoin vs Ripple:

Value & Transaction Fees

In the Bitcoin vs Ripple comparison, value is an area that varies greatly. One of Ripple’s XRP tokens is worth around $1, while one Bitcoin can be worth over $50,000, a whopping 50,000 times larger than Ripple. Historical price charts show this has always been the case, though Ripple has been growing steadily.

The transaction fees charged by Bitcoin vs Ripple also vary. The current minimum transaction charge on the Ripple network for a standard transaction is 0.00001 XRP, which is incomprehensibly small and effectively free. On the other hand, Bitcoin’s minimum transaction fee is 0.0001 BTC, which is due to Bitcoin’s value being significantly larger than Ripple’s.

Transaction Speed

Bitcoin vs Ripple’s transaction speeds differ by an astonishing amount. Bitcoin processes an average of 4.6 transactions per second. This is one of the slower transaction speeds of any cryptocurrency, largely due to the complicated and intensive nature of the Bitcoin mining process. Bitcoin confirmations may take minutes to come through. In contrast to this, Ripple processes around 1500 transactions per second, one of the quickest rates around. XRP transactions are typically confirmed within seconds.

Market Capitalisation

As mentioned before, the two coins market caps are worlds apart. Bitcoin’s market cap is $780 billion and it has a 24-hour trading volume of around 32 billion. This has been built up over years of dominance in the decentralized world. Ripple’s market cap is still an impressive $42 billion, with a 24-hour trading volume of $3 billion. Even though it is much smaller than Bitcoin’s, it is still very strong and ranks as the sixth-largest cryptocurrency by market cap.

Verification System

Bitcoin uses the proof of work system to verify transactions, whereby network validators, known as miners, need to expend an amount of effort to verify blocks. This is a very energy-intensive system, as lots of computing power is required to solve complex mathematical equations. Ripple does not use this system, nor does it use the proof of stake system used by Cardano and Ethereum 2.0. Instead, Ripple uses a unique distributed consensus mechanism to validate transactions. Participating nodes verify the authenticity of a transaction by conducting a poll. This means that Ripple remains decentralized and can process near instant confirmations.

Energy Consumption

Bitcoin vs Ripple present two very different levels of energy consumption. The mining process for Bitcoin requires a lot of computing power and electricity and, as such, has a large impact on the environment, with Bitcoin consuming around 707 kWh per transaction. Ripple, with its unique validation systems, consumes much less power, only 0.0079 kWh per transaction. That is a fraction of the amount Bitcoin consumes and means that Ripple’s carbon footprint is much smaller than Bitcoin’s.bitcoin vs ripple crypto comparison graph

Pros Of Bitcoin For Traders

These are the pros of trading Bitcoin:

  • High liquidity
  • Huge market cap
  • Large trading volume
  • Large price fluctuations
  • Traded on any exchange
  • Highest value of all cryptocurrencies

Pros Of Ripple For Traders

These are the pros of trading Ripple:

  • Affordable, low price
  • Small environmental impact
  • Incredibly low transaction fees
  • Lightning-quick transaction speeds
  • Backed by many financial institutions

Final Word On Bitcoin Vs Ripple

Bitcoin vs Ripple is a comparison of two of the largest and most popular cryptocurrencies around. Both have survived the test of time, building up strong market capitalisations and trading volumes. While Bitcoin is still the most well-known crypto, Ripple has many advantages, including low fees, quick transactions and minimal environmental impact. Study the relevant price charts and decide which crypto coin is right for you.

FAQs

Bitcoin Vs Ripple - Which One Is Better To Hold For A Long Time?

There is no simple answer. Bitcoin has established itself as the dominant crypto and generally yields good profits if you get in at the right time but, with a lower value, Ripple could climb a lot at some point in the future.

Where Can I Find Bitcoin Vs Ripple’s Values?

Both values can be found on exchanges and information sites like CoinGecko and CoinMarketCap. Other information, such as market cap, trading volume and historical data is also available

Bitcoin Vs Ripple Which Is A Better Investment?

It is hard to give a definitive answer as to whether Bitcoin or Ripple is a better investment. Both fluctuate greatly so either could yield a big profit or large losses.

Is Bitcoin Vs Ripple Better For The Environment?

Ripple is a lot better for the environment. The proof of work system used by Bitcoin consumes vast amounts of energy, eclipsing that used by Ripple.

Can You Mine Bitcoin Vs Ripple?

Bitcoin can be mined as it uses the proof of work system. Ripple cannot be mined, it uses a unique validation system.