Comparing Bitcoin with other coins and trying to determine which would make a better buy might just be analysts’ favorite thing to do, since we’ve seen countless such comparisons appear over the years. Many digital assets have been included in these assessments, serving as potential contenders, with Bitcoin remaining the constant.
Ethereum most definitely holds the record for the asset most often compared with Bitcoin, which makes perfect sense since it’s the second-largest crypto in the market. People have been pitting the two against each other for years, so there’s no need to expand on the topic any further. Everything has already been said in this regard.
However, bringing a different coin into the conversation, one that isn’t as discussed and dissected by experts, but has a lot of potential nevertheless – that would make for an interesting juxtaposition. So, today it’s XRP’s turn to play the role of Bitcoin’s challenger.
If you’ve read the XRP news today, you already know that the coin has been performing quite well recently and might be poised for further growth in the near future. According to the latest data, XRP has increased by 35% over the past three months, and by over 400% over the past year, currently trading at $3.032511, with a market cap of $180.77B USD.
But are these figures enough to consider XRP worthy of being placed in the same league as Bitcoin? A deeper dive into the assets’ recent standings can help us find the answer.
The case for Bitcoin
We should start off by mentioning that Bitcoin has a major advantage over all existing digital currencies, including XRP, which derives from it being the first mover in the crypto space and having a value and market cap larger than that of any other cryptocurrency. It’s, therefore, hard to imagine another coin could ever attain the level of recognition and legitimacy that Bitcoin has achieved because of its unique trajectory, which simply cannot be replicated.
Bitcoin was created to function as a digital means of payment that doesn’t fall under the control of any central organization or institution. However, things took a different turn for the coin when its anonymous inventor, known under the pseudonym Satoshi Nakamoto, decided to cease all involvement with the project and completely remove themselves from the picture, leaving Bitcoin in the hands of the community. As a result, Bitcoin deviated from the path it was set on initially and gradually developed into an investment instrument, becoming increasingly popular with traders and investors.
Unlike many cryptos out there that appeared out of nowhere, Bitcoin was built on a comprehensive set of values and principles and stands on a sturdy architecture, all of which are detailed in its whitepaper. The asset’s design includes a hard cap set at 21 million tokens and employs a deflationary mechanism, known as the halving, which regularly reduces the rate at which new coins enter circulation. These are some of the features that continue to boost demand and ensure Bitcoin remains a valuable asset.
Its solid technical foundation and historical performance have turned Bitcoin into the most used, trusted, and accepted crypto. The crypto leader is one of the few digital assets to enjoy widespread acceptance as a payment solution, with an increasing number of businesses and organizations around the world making changes to their financial structures to accommodate it.
Furthermore, Bitcoin also benefits from notable institutional involvement. From major asset managers to pension funds and hedge funds, all these entities have started taking an interest in Bitcoin in recent years, developing regulated financial products that give investors the possibility to access Bitcoin safely, and encourage them to pour more money into the asset. This makes Bitcoin infinitely more reliable than its peers, enhancing its credibility and worth.
The case for XRP
While XRP might not have a legendary backstory like Bitcoin, it has other strengths that make it a compelling option. XRP’s gains over the past year speak for themselves. A rise of over 400% in just twelve months is a clear indication of the coin’s strength and appreciation potential. XRP currently occupies the 3rd position in the crypto hierarchy, right after Bitcoin and Ethereum, so it can be a great alternative to the two dominating cryptocurrencies, particularly for those who want to further diversify their crypto portfolio.
However, we all know that the crypto market is inherently volatile, and things could change at any moment for XRP. The good news is that the rising value is not the only notable achievement for XRP. The aspect that makes the altcoin stand out the most is its utility and the use cases deriving from it. XRP’s purpose is to act as a bridge currency that facilitates international transactions, allowing parties to convert different fiat currencies seamlessly, without having to resort to an intermediary.
With XRP, moving money across borders is fast, easy, and most importantly, affordable, as transfers usually settle in just a few seconds and cost as little as $0.0002. By comparison, using Bitcoin for transactions is costly and slow, limiting its capacity to function as a day-to-day payment method. Therefore, XRP differentiates itself from the rest by addressing a real-world issue, something that also helps drive adoption for the asset.
Another reason why investors might want to pay close attention to XRP is the potential rally that seems to be shaping up on the horizon. Anticipation around the introduction of spot XRP ETFs is growing – and XRP’s price might follow suit. Moreover, the lengthy lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, XRP’s parent company, is expected to reach its conclusion soon. A positive resolution to the legal battle could also contribute to a major price rise by offering regulatory clarity and providing reassurance of the asset’s legitimacy.
Bottom line
While XRP might not be able to surpass Bitcoin in terms of value, it still makes for a worthwhile investment. Bitcoin has already appreciated significantly, which means from now on it’s less likely to see spectacular price surges. With XRP, on the other hand, there is plenty of room for growth. So, anyone who invests in the coin at the right moment could register massive gains once the asset starts rallying.
