Ripple (XRP) is the name which is increasingly coming up in the world of Cryptocurrency. Everyone knows that Bitcoin is the first Cryptocurrency based on blockchain technology, so people often ask about the difference between Ripple and Bitcoin.
There is no doubt that XRP can provide massive returns on the investment, but at the same time has an equal risk of going down. Therefore, before you invest money in any Cryptocurrency, you must be aware of the risk they have. So, remember to research properly before you buying because XRP value never remains constant.
Bitcoin vs Ripple
Still, many people think that Bitcoin is similar to XRP, but in reality, there are huge differences between these both. Bitcoin is a digital currency that can be used for making regular payments for goods and services.
While on the other hand, Ripple is a network used by banks and financial institutions for payment selling, currency exchange and remittance. If you are willing to invest in both these, you must know about various differences.
Different Systems of Verifying Transactions
Bitcoin verifies the transaction using a process called mining. In this process, miners have to solve complex mathematical equations with the help of high-end computers and software to add a new block of transactions.
In exchange for the mining process, miners get rewarded with free Bitcoins they can sell or hold in the open market. While on the other hand, XRP uses a consensus protocol for verifying transactions. However, the trading procedure of both are completely same, one can easily place XRP trade using any broker.
XRP Is Faster and Cheaper
XRP is one of the environment-friendly cryptocurrencies. Due to the consensus process, it is able to process the transactions very fast at very cheap rates, consuming the minimum energy.
While Bitcoin transactions are very slow, take almost ten minutes to complete one transaction, and are very expensive. In addition, for mining a Bitcoin, miners need high-end computers that consume more energy than normal once, which is also not energy efficient.
Lesser Supply
The supply of Bitcoin is significantly lesser than XRP. Approximately Bitcoin has a total of 21 million market supply, while XRP has more than 100 billion tokens, of which 50 million are currently in the market. Therefore, Bitcoin has a much higher price than XRP.
Different Distribution Methods
The distribution of Bitcoin is quite simple; like all other cryptocurrencies, Bitcoins are distributed through mining. Whenever a mining participant mines a coin, it contributes to the total supply of the Bitcoin.
But XRP is the pre-mined coins, meaning the entire 100 million tokens were mined before the launch. However, Ripple has locked 55 million coins with them and has the ability to release 1 billion coins every year. Whenever they need funds, they put unsold tokens in the new escrow.
Ripple Is A Private Company
Bitcoin is a completely decentralized currency. Although XRP is also a decentralized currency, but it runs on the network of Ripple, which is a private company. However, Cryptocurrency is a decentralized currency those transactions are not shared with any institutions, so some people view this as a negative.
...............................................................................If you want to know what the price of XRP will be within the next ten years, our XRP price forecast can give you a really good idea of what to expect, you can check the link below or enter our chat rooms and talk with crypto enthusiasts and traders.