Bitcoin Vs Ripple: 5 Differences You Need to Know
Bitcoin was the center of cryptocurrency craze for the year 2017, but 2018 seems to be the year of a steadily rising rival – Ripple. Ripple is initially a company with the coin named officially as XRP and has hit a new milestone starting this year.
With a huge difference in the price of tokens of both the cryptocurrencies, Ripple soared higher to become the second most dominant cryptocurrency in the world. Interesting as it may seem, Ripple has promised some potential advantages over bitcoin which is the largest.
The 5 major differences between bitcoin and ripple cryptocurrencies:
1. One Ripple token is worth $3.84 while the price of a single bitcoin has risen to around $15,000. One can not simply make decisions based on the price difference. Watching the price of a single token is good enough for understanding market movements, but it won’t help you compare real value of cryptocurrencies.
2. The major benefit Ripple has over Bitcoin is transaction time. Ripple’s technology allows transfers to be processed much faster in approximately 4 seconds per transaction, faster than any cryptocurrency right now. While Bitcoin, as we know, takes around an hour depending on the fee chosen.
Bitcoin has experienced a number of problems as it has grown in popularity with users reporting slow transactions taking more than an hour to process. The strain on the network has also pushed up the transaction processing costs.
3. Ripple has a market cap of around $112 billion while Bitcoin rests at $257 billion. Analysts place emphasis on the market cap while comparing cryptocurrencies. The total valuation of all tokens in circulation at a time shows how much the market cap is worth. Ripple may seem like a tiny player but its market cap is overwhelming with billions of dollars sloshing around.
4. Unlike Bitcoin, XRP coins are not created or mined by users. What’s different about Ripple is its supply is largely controlled by just one company. It created 100 billion coins initially and 38 billion of them are in circulation at the moment. While Bitcoin’s supply is limited to 21 million and around 11 million coins are believed to be mined.
Also, you don’t need to set up mining rigs for Ripple as one has to do in need to mine bitcoins. The energy cost per transaction in case of Bitcoin is approximately 250 kWh whereas it is negligible in case of XRP.
5. Bitcoin has been continuously facing problems regarding acceptance from nations worldwide and has faced fluctuations in its prices, the biggest one being at the end of the year 2017 when its price plunged to around $11,000 from reaching a peak of $20,000.
Meanwhile, Ripple has formed partnerships with dozens of established financial players like American Express and UBS. Financial service companies in Japan and South Korea have adopted Ripple’s technology in recent weeks, helping boost the price of the cryptocurrency. Currently, more than 100 banks use Ripple’s payment network and more may join soon.
Ripple, launched in 2012, aims to facilitate the global transactions. It differentiates itself from other digital currency platforms by its connections to legitimate banks. Well, the digital market has proven itself unpredictable that we are not aware of which new cryptocurrency will be the leading one. Bitcoin remains firmly entrenched as the world’s most valuable cryptocurrency despite many ups and downs while Ripple has gained newfound attention around the world from those looking for alternatives to Bitcoin.