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Ripple vs. Bitcoin: Which One Is Better?
If you have recently come to know about cryptocurrencies and have been fascinated by them like millions of others, you must be thinking about investing in one of the major ones like Bitcoin and Ripple.
Before you start to read the differences and similarities between the two, know that Ripple is only the network, the currency competing with Bitcoin is called Ripples or XRP.
Which one is better is a subjective matter. It only makes sense to know their similarities and differences, and then decide which one meets your specific requirements the most. Here is a detailed comparison of both.
Things That Are Similar Between Ripple and Bitcoin
- Both the currencies focus on the concept of decentralization of crypto currencies and operate decentralized as of now.
- The cash out procedure for both is the same, i.e., trust based relationships. For example, if you want your bitcoins or ripples to convert into US dollars, you can only do so with the help of a gateway.
- The code for both is open-source even though Ripple has not released its currency’s code yet.
- They both work under the same algorithmic principles, i.e., if a one person authorizes transaction X on the network, every entity on the network will have to agree that transaction X will take place.
- Free and anonymous transactions are allowed by both.
Things That Are Different Between Ripple and Bitcoin
- Bitcoin is the term given to currency. However, Ripple refers to a transaction network that aims to be decentralized.
- Bitcoins are generated using the mining protocol whereas Ripples in its truest essence is not exactly a crypto currency.
- Ripples are currently the faster currency due to the use of iterative consensus process against Bitcoin’s mining protocol.
- Bitcoin’s network is only for Bitcoin currency, but that’s not the case with Ripple. As a network, Ripple can track any cryptocurrency including XRP and Bitcoin.
- Since Ripple in itself is a network, you can sell your XRP or Bitcoin within this network to the US dollar. You will not need a third party to this transaction. On the other hand, doing so with Bitcoin required a third party. Hence the fiasco of Mt. Gox that resulted in a loss of $480 million.
- The bitcoins are increasing with time, but Ripples already have a finite number of 100 billion, which means there are only 100 billion XRP and it stays fixed at that
- For a person to own bitcoins, they have to go through the mining process. XRP, on the other hand, has been announced to be distributed in future, up to 70% of it.
- Ripple has made crowdfunding possible through the use of its automated scripts. For example, a script might look something like this “the target for an account X is $200 and if it does not reach that goal by September 30, all the money received by this account will go back to its original owners.”
Looking at these similarities and differences, you should be able to decide as to which currency sounds better to you. However, here is a little information about their performance in the recent times to help you decide if you are thinking of investing in any one of them.
Ripple vs. Bitcoin – Market Performance
Bitcoin has seen many mishaps since its creation, but the currency seems to rise over and over. As for XRP, the starting of May was a great time. The currency reached its highest value in the third week of May. However, XRP’s value started to come down and kept coming down for nearly next two weeks. During this time, Bitcoin still performed well, and Bitcoin has seen a rise of more than 40% in its value since then. XRP has not shown any considerable climbs during all this time.
However, according to the experts in the market, XRP remains an attractive cryptocurrency for most investors mainly because of its quick settlement of transactions (as mentioned in one of the differences above).
In fact, this particular point is going against bitcoin since its original code still exists today but is not scaled according to the increasing size of the currency and its customers. For bitcoin, the next big challenge is the processing time of transactions.
Thanks for reading!
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