Bitcoin vs Ripple – Compare & Learn which Cryptocurrency is best for InvestmentLast Updated Date: Nov 16, 2022
Let’s get into the Bitcoin vs Ripple article and review all the parameters that classify how bitcoin and Ripple are better than each other.
It’s no surprise that Bitcoin is the top player in the crypto-currency sector. In terms of market value and capitalization, bitcoin has excelled other digital assets.
Still, people want to compare it with other trading options due to numerous reasons, such as ‘what is the difference between bitcoin and ripple?’ These days, it is emerging as the most popular question.
What type of technology does bitcoin and ripple use? Which crypto-currency will overtake and become a top player? What is the future expectancy?
If such kinds of questions are shaping a confusing situation for you, this article will be the best answer.
Bitcoin vs Ripple – Introduction
Bitcoin is a well-known cryptocurrency or a digital currency that operates on the blockchain network.
Though it is similar to any physical currency with a little difference, such as it has no physical existence, it is an entirely digital transaction mode, etc.
On a peer-to-peer (means Person to person) basis, bitcoin users can send and receive this currency.
On the other hand, Ripple is an invention of Ripple Labs- a technology company based in ‘US.’ It is another variation of crypto-currency launched just after three years of bitcoin in 2012.
Unlike bitcoin, the primary objective of ‘Ripple’ was to establish a mode of transaction for banks to send and receive money in both the international and national markets.
Hence, it is very clear that right from the beginning, Ripple targets the financial industry.
However, many people believe that Ripple and XRP are the same things, which is wrong. Instead, they relate to each other.
Ripple has been named to the blockchain technology on which the entire Ripple network runs.
On the other hand, XRP refers to the crypto-currency or digital platform that Ripple users use to make a transaction.
In a nutshell, just as Ether is for Ethereum, Bitcoin is for Bitcoin, XRP is for Ripple.
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Bitcoin vs Ripple – Coin Supply
Bitcoin has 21 million total coins, and a big portion is already in use. It means that after a few years, bitcoin will be short of supply.
However, it will not happen too soon. The time when the last bitcoin will be mined is expected in the year 2140.
In Ripple, there are a total of 100 billion XRP coins, out of which 60 billion coins are already in circulation.
Hence, both bitcoin and Ripple are standing at the same position as both are short of supply.
It is due to the reason as even a single bitcoin is valuable enough that you can easily purchase a 1bhk flat in any metro city in India. But if you look at the Ripple XRP price, so it is relatively lower.
Also, the bitcoin prices are rising day by day, and it will keep rising until the last bitcoin is mined.
Experts claim that bitcoin is still evolving with opportunities, and traders can generate good returns from it.
Whereas Ripple hasn’t encountered the biggest growth so far, that’s why opinions are two-fold. Altogether, both are equal in terms of supply, but bitcoin is a leading player in terms of value.
Compare Bitcoin & Ripple – Technology used
These days, people seek a faster transaction mode as it eradicates hassles and confusion. Especially when transactions are held in millions or billions, people seek a reliable yet quicker source.
However, Bitcoin uses traditional blockchain technology that hardly takes 10 minutes to process the transaction.
Even though the sender or receiver is making payments from national or international boundaries, this time will remain the same.
Though, as compared to the bank, payments through bitcoins are relatively faster. The bank takes 2 to 3 days or sometimes a week to process the transfer, but bitcoin is comparatively faster.
However, in terms of reliability, bitcoin comes at the top because of its oldest existence in the world of crypto-currency.
At the same time, Ripple appears to be advanced and relatively faster alternative.
Ripple hardly takes few seconds to process the transaction as compared to Bitcoin. It is the primary factor that seems to overtake bitcoin.
If we talk about the transaction that both these crypto-currencies can handle per second, Ripple has the potential to process a total of 1500 transactions per second.
In contrast, bitcoin can process only seven transactions in a second.
Apart from that, both bitcoin and Ripple are a popular payment method among businesses and big firms to process international transactions without any hassle.
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Bitcoin vs Ripple – Decentralization
Bitcoin is a decentralized currency, which means a single person can’t control it.
No legal authority or Central bank manages this digital currency. The entire blockchain network of Bitcoin is handled and managed by miners.
On the other hand, Ripple XRP is not a decentralized currency because it is managed and controlled by Ripple labs- a technology company based in the US.
Though Ripple labs do not control the funds or amend transactions, yet they have full control over the Ripple XRP supply.
The remaining XRPs in Ripple are under Ripple Labs’ control, which isn’t the right thing. It provides power to the founder of Ripple Labs to use the XRP the way they want.
It also raises concerns because technically, the founder of Ripple Labs can manipulate the price. So make sure you are already aware of this fact if you were planning to invest in Ripple.
Comparison of Bitcoin and Ripple – Utilization
Bitcoin is the real example of Crypto-currency or a digital currency to make payments without any physical money.
Also, no third-party controls it, and nobody has access to control its demand and supply. But when it comes to purposes, it varies. People use the Bitcoin network for multiple purposes.
- Traders use it to generate profits out of it.
- For miners, it is an income-stream
- It removes hassles related to the transaction for businesses and enterprise operations at the global level.
- A person can use Bitcoin in any country, and few brands are commercially accepting bitcoin as a mode of transaction.
On the other hand, if we look at the Ripple utilization, it is relatively less popular. Yet, more than 300 international financial institutions are actively using Ripple Network.
The transfers in Ripple are faster, cheaper, and convenient that’s why its demand is also rising. If we briefly talk about its utilization, Ripple is popular in the following areas-
- For international transactions
- Currency Exchange
It proves that Bitcoin is high in demand in comparison to Ripple.
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Bitcoin vs Ripple – Mining Process
If we compare today’s competition in bitcoin mining with the time when it was first launched, we see a surprising difference.
There was a lower competition when Bitcoin was just a new thing in the market. People were not fully aware of how bitcoin mining works.
But those who found it an attractive income source put their hands in and generated immense income.
Surprisingly, these miners were doing it all on their simple computer system due to low competition.
But within few years, the bitcoin mining task gained popularity in a dramatic style, and today, people are spending on the expensive and advanced system to accomplish their mining tasks.
Though, they are doing this because the reward is huge. Even people have also established private organizations where a group of miners actively manage bitcoin mining tasks through a ‘mining pool.’
In this, multiple miners contribute and divide the rewards. But this isn’t a thing with Ripple. Ripple doesn’t provide this opportunity to the people to contribute to its mining task.
Only banks and financial institutions reserve the right to contribute to the network, which is unfair to the general public.
Hence, Ripple offers fewer opportunities to the people to generate income.
Bitcoin vs Ripple – Conclusion
Ultimately, now it isn’t too much difficult to decide. In this article, we reviewed bitcoin and Ripple closely and paid attention to every quality that makes them a leading player in the financial sector.
However, as always, bitcoin is still evolving with a higher success rate. Its demands are consistently rising. Even though it is a trader or a business firm, they are increasingly using Bitcoin.
On the other hand, Ripple can’t be called a crypto-currency. Instead, we can call it a mode of exchange since banks and financial authority handles its coins.
Also, it isn’t a decentralized currency but run by Ripple Labs- a private company based in America.
Moreover, one Ripple price is also extremely less if we compare it with the bitcoin price, which is in the figure.
It all concludes that Bitcoin is still a strong player in the market. People are generating income through the Bitcoin network in multiple ways.
Till now, bitcoin is operating on a traditional blockchain network. Near in future, transactions can be much faster if it is upgraded.
It also triggers a green signal for traders as profits expectancy will be increased. Hence, the future can bring more for you if you are investing in Bitcoin.
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