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March 23, 2019
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There is no doubt that Bitcoin is the most popular token in the world, well basically it is the oldest one and as well for now it is the largest one. Why for now? Because of Ripple and other newer cryptocurrencies, more on that later. Ripple is a San Francisco based company that found XRP token in 2015, it is mostly referred as “ next Bitcoin” and for now it holds second position in valuation just after Bitcoin.
Why was Ripple created?
The differences between those two main coins start right in the main idea of existing. Bitcoin was meant to change the way people make payments and ultimately replace normal currencies, so as definition Bitcoin saw banks as enemies. On the other hand XRP does not aim to revolutionize and change existing system, it just wants to improve it. Ripple mainly helps to transfer loans worldwide, and it was developed in cooperation with other entities so banks and corporations often use XRP to transfer loans.
Ripple is not decentralized
Differences continue along with the management and governance of the coins; Bitcoin is very decentralized and not under control of any company or government of any country. But XRP is a company owned and controlled currency, Ripple has headquarter in San Francisco and local offices in New York, Luxemburg, Singapore, India, Sydney and London. Company has more than 100 customers all over he world.
Ripple is the second largest cryptocurrency
Coming to sizes of coins, as mentioned before Bitcoin is the biggers currency and has market capitalization over $67,789,694,922 and its coins are one of the priciest coins on the market with each costing around 3,888 USD for the moment of article being written. Ripple is smaller than that but is is second by market capitalization with over fourteen billion USD according to coinmarketcap.com. The price of each XRP coin is much lower that Bitcoin and is traded at 0.3586 USD. That makes that there are more XRP coins on the market than Bitcoins.
Ripple transactions are much faster than Bitcoin
Advancements of XRP may be seen right from the most used function – transactions. The win for performance match goes to XRP with average verification of transaction under 5 seconds whereas Bitcoin has average verification period of 10 minutes. It is because of ability of handling transactions, namely Bitcoin can procedure on average 7 transactions per second and Ripple can procedure more than 1,500 transactions at the same second. Price-wise XRP also have advantage with 0.01 USD per transaction.
Ripple has a larger supply and is easier to mine
There are ultimate number of Bitcoins that can be produced and it equals to 21 million coins, and there are over 17 million of coins in use now it is over 83%. Coins are produced by mining using computer power for calculation of transactions, and each coin is harder to mine than previous one making it very hard to mine after some time. Many ecologists say that Bitcoin is harming environment by its very power consuming mining affecting global warming. Unlikely Ripple has five times more coins around 100 million and users do not have to mine them as they are all pre-mined by company which holds 60% of coins in use. Being pre-mined coin gives many advantages to XRP like less power requirements.
Ripple is more popular among banks
Bitcoin was created by the person or group of persons under the name of Satoshi Nakamoto, real identity of founder\s are not known till today. Similar to XRP the founder of Bitcoin holds significant amount of coins around 980 thousand BTC. The company that owns coin XRP Ripple also holds around 60 billion coins and maintain 60% of the main supply. Unlike Bitcoin Ripple constantly launches new parties of coins into market.
Ripple has a much larger reserve than Bitcoin
TBitcoin is being used as the main transaction con by individuals and enterprises worldwide. It is preferred for being less expensive and easier to use for transferring money across world like in India. Also many companies started to accept Bitcoin as payment option for their products and services. XRP is more preferred by large users like banks like Japanese Fidor Bank or American Express. Ripple uses for its SWIFT system to minimize price and period for transaction and this is the main reason for Ripple having fewer customer numbers.
Bitcoin is more accessible on exchanges than Ripple
One of the points where Bitcoin is much ahead of XRP is exchange since investing in Bitcoin is much easier and convenient. Its popularity makes it easier to find it and buy for fiat or crypto currencies. However very few exchange platforms allow users to trade XRP and it is even harder to acquire it with normal money. Mostly Ripple coins are purchased for other popular coins like Bitcoin and Ethereum.
Conclusion
Even if Bitcoin is dominating market right now it is very likely to change since XRP has more advantages and supported by different financial structures. More and more individual traders are becoming more comfortable with using XRP in a row with organizations.
