Bitcoin

Could Ripple (XRP) Be the Next Bitcoin?

written by adam othman at motley fool canada

How does one asset dethrone another from the top spot and take their place? There is no simple answer because the top point can take many forms. the most common of which (especially when it comes to stocks) is market capitalization. but there are also other quantifiers.

Reading: Will xrp be the next bitcoin

For example, in the cryptocurrency market, many cryptocurrencies have outpaced the leader bitcoin (crypto:btc) when it comes to trading. But when it comes to market cap, only ethereum has any realistic chance of overtaking bitcoin. it might even be a bit more famous and well-known compared to cryptocurrencies, thanks to its associated secondary markets and investment assets (such as nfts).

For other cryptocurrencies, like ripple (crypto:xrp), becoming the next bitcoin would be a challenge, to say the least.

bitcoin vs. ripple

bitcoin and ripple have several differences. bitcoin is the cryptocurrency with its own blockchain, while ripple was created as a payment settlement system. this alone makes it a serious competitor to bitcoin, as it is more likely to be adopted by existing banking/financial systems than bitcoin (which is still primarily coveted as an investment asset).

however, ripple fails as a real cryptocurrency. When it comes to paying for goods and services through crypto, bitcoin has a much better chance of being accepted than ripple.

the fundamental technological difference between the two is that where bitcoin follows a proof-of-work system to validate the transaction, ripple uses a consensus protocol.

the next bitcoin?

despite the differences, many of which are in ripple’s favor, its chances of becoming the next bitcoin are quite low for a number of reasons. It is currently the 7th largest cryptocurrency by market capitalization, and Bitcoin is about 23 times larger than Ripple. therefore, the smaller crypto is hardly on track to displace bitcoin from the top spot. it may not even be possible if the price of bitcoin hits four digits instead of the current five.

See also: Mining Bitcoin with Nuclear Power – ScottMadden

The same goes for the price tag. at best, ripple couldn’t even cross 4 US dollars per unit, while bitcoin was over 67,500 US dollars.

The only area where ripple could be considered a more promising crypto investment compared to bitcoin is its growth potential. even if we just use re-peaking the previous peak as a comparison benchmark, ripple far outperforms bitcoin. the largest crypto is trading 43% off at its peak.

ripple, however, can grow its investment capital by 2.5 times just by reaching its 2021 peak and about five times the growth if it reaches its all-time peak in 2017. bitcoin will have to overcome several expectations and ceilings to reach that mark.

silly food

If you are not intimately familiar with the intricacies of crypto investing and different cryptocurrencies, you will naturally learn more about bitcoin, the most well-known cryptocurrency that everyone from retail to institutional investors is investing in. but out of the two, ripple might be a slightly better buy, even if it may never become the next bitcoin.

could the post be ripple (xrp) the next bitcoin? first appeared in the motley fool of canada.

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See also: Is cryptocurrency real money? Heres an explanation

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    foil contributor adam othman has no position in any of the listed stocks. motley fool owns and recommends bitcoin and ethereum.

    2022

    See also: Why Did Elon Musk Sell Tesla&x27s Bitcoin? | The Motley Fool

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