Bitcoin has long been the biggest and most valuable cryptocurrency out there, since its inception. But now people think that XRP, the digital coin created by Ripple, could one day become the king in the crypto jungle.
XRP is faster and always works with many traditional financial companies. So could it leave Bitcoin behind and become the top cryptocurrency?
This battle between Bitcoin and XRP represents a clash between the original crypto king and an ambitious upstart. In this article, we will be exploring both cryptocurrencies, price history, supply differences, and the future.
At the end of this article, you can decide if XRP will ever overtake Bitcoin
Let us dive in.
XRP vs. Bitcoin: Historical Performance
Bitcoin has captured the hearts of traders and investors ever since its introduction by Satochi Nakamoto in 2009. With its upward price movement from cents to big figures, many began to see the potential of the digital currency, with each of its bull runs proving its resilience and adaptability.
XRP, on the other hand, came to the scene around 2012. The token is linked to Ripple protocols with the aim of solving complex global banking transactions.
Unlike Bitcoin, XRP didn’t see as much growth as Bitcoin when it kicked off; however, in late 2017 and early 2018, XRP became recognized among investors and traders alike. Here note that legal battle with regulatory authority like SEC has one of the biggest hurdle in the journey of XRP.
Market Cap and Price History
Bitcoin currently has a much higher market capitalization than XRP. Currently, Bitcoin’s market cap was around $672 billion. XRP, on the other hand, has a market cap of around $32 billion. This means Bitcoin’s market cap is over 20 times larger than XRP.
Bitcoin has long dominated the crypto market chart as the #1 cryptocurrency, while XRP generally maintains its position as top-5 ranked crypto by market capitalization.
For XRP to surpass Bitcoin, it would need to see massive growth in its market cap from currency levels. Bitcoin’s cap would also likely need to stagnate or decline for XRP to have a chance.
For more information, check the current Ripple price prediction.
But before we conclude, let us look at the price history.
Bitcoin has seen much higher valuations in its history compared to XRP. Bitcoin reached an all-time high of around $68,000 in November 2021. XRP, meanwhile, hit an all-time high of $3.84 in January 2018.
In terms of growth, both cryptocurrencies have seen major gains but also deep declines. In 2017, XRP gained over 35,000% but lost over 80% of its value by 2019. Bitcoin rose over 1,300% in 2017 before falling 84% by 2018.
Technological and Supply Differences
There are some major differences to consider when it comes to these cryptocurrencies. These differences are part of the reasons many investors think that XRP has a chance to overthrow Bitcoin.
One major difference is transaction time. XRP transactions take 3-5 seconds on average, compared to around 10 minutes for Bitcoin. This is because XRP leverages a consensus protocol that enables much faster processing times. Bitcoin uses a proof-of-work system that is slower by design.
This means XRP is better suited for real-time use cases like micropayments, point-of-sale purchases, and financial settlements.
Bitcoin’s network congests easily during high volumes, which can cause significant delays.
When it comes to supply and inflation, XRP has a current circulating supply of over 48 billion. Its total supply is 100 billion, all of which have already been premined. This means no new XRP can be created.
Bitcoin, on the other hand, has a current circulating supply of 18.9 million, which is limited to 21 million BTC by design. New bitcoins are created through mining rewards. XRP thus has a much higher potential token supply than Bitcoin.
Finally, Bitcoin operates on a proof-of-work-based decentralized blockchain. XRP uses a centralized system where transaction validators are approved by the Ripple company. This has led to decentralization concerns around XRP.
Bitcoin is fully open-source, with changes requiring community consensus.
XRP governance and technical changes are more centrally managed by the Ripple team, which some view as less aligned with the crypto ethos.
Bitcoin Adoption and Use Cases
The market acceptance of Bitcoin is multi-dimensional. Many people consider gold as more than just a store of value; they see it as a hedge against economic insecurity.
Because of its decentralised character and limited supply, it is impervious to standard monetary policies, attracting the attention of institutional investors.
It also facilitates censorship-resistant transactions, donations, and cross-border transfers. For example, El Salvador recently adopted Bitcoin as legal tender.
However, high fees and slow processing times limit Bitcoin’s use for retail transactions and everyday payments.
Most spending happens on layers built on top of Bitcoin, like the Lightning Network. Bitcoin acts more as the base monetary asset for the crypto economy.
Also Read: How Tech Stores Adopted Bitcoin
XRP Adoption and Use Cases
XRP has far less general adoption than Bitcoin. However, it is targeted for use by financial institutions for international payments and liquidity provision. Over 150 entities use Ripple’s technology, including banks like Santandar, SBI and SCB.
XRP facilitates faster and cheaper cross-border transactions between different fiat currencies. Payment providers can use XRP as a liquidity bridge without holding the volatility risk. XRP can settle transactions in 3-5 seconds with fees around 0.00001 XRP.
Ripple has partnered with money transfer services like MoneyGram to pilot XRP usage. However, adoption by large banks remains relatively low. Some argue Ripple does not need XRP for its technology to function, limiting its real-world use case.
Regulatory and Legal Landscape
In the crypto realm, regulation continues to be a source of contention. While Bitcoin has encountered difficulties, its decentralized nature makes it more difficult for any single authority to manage or control.
Several governments have attempted to categorize and legislate it, although the restrictions range from outright prohibitions to full recognition.
The centralized nature of XRP has drawn attention to it to more intense scrutiny. The most noteworthy dispute was the SEC lawsuit in 2020, which claimed that the sale of XRP amounted to an unregistered stock offering.
Luckily, Ripple Labs, the company behind the XRP cryptocurrency, has come out victorious in its lawsuit against the Securities and Exchange Commission (SEC). In a ruling issued today, U.S. District Judge Analisa Torres found that XRP is not a security, and therefore does not need to be registered with the SEC.
How XRP Could Overtake Bitcoin: Future Scenario
Predicting the winds of change in the cryptocurrency landscape is an exercise in speculation. However, several conceivable scenarios could potentially shift the balance of power between stalwart Bitcoin and upstart XRP:
- Mainstream adoption: Ripple’s technology by global financial institutions has long been touted as a pathway for XRP to gain dominance. If megabanks integrate Ripple en masse to facilitate cross-border payments and fund transfers, XRP may achieve broad utility and surge in value.
- Regulatory clarity: A favourable legal resolution granting XRP a clearly defined status could remove major uncertainties holding back wider acceptance among both investors and businesses. This mainstream credibility may propel XRP forward.
- Technological evolution: Ripple’s ecosystem could also tip the scales. Breakthroughs enhancing speed, scalability, security, uptime, and efficiency could make XRP’s value proposition even more compelling versus rivals. New functionalities may also expand its capabilities into smart contracts and yield opportunities.
- Global Crisis: World events triggering rapid global fund transfers may advantage XRP’s high-speed transactions. Upheaval, where timing is critical, could spur emergent demand for the token’s frictionless mobility between currencies and borders during a crisis.
Experts Opinion on Future Prediction
Experts have different views on whether XRP could one day become bigger than Bitcoin.
Some experts think Bitcoin will stay dominant because it was the first major cryptocurrency. They say Bitcoin has proven itself to be secure and valuable over time, like digital gold. These experts believe Bitcoin’s head start and name recognition will keep it number one.
But other experts think XRP has a chance to overtake Bitcoin. They say XRP is faster and is already working with big banks to move money globally.
If more banks worldwide use Ripple’s technology, XRP could grow very big. These experts think XRP was created to transfer funds quickly, which financial companies need.
Predicting the future is hard in crypto since things change fast. Bitcoin has stayed on top for a long time. However, some experts say XRP has real-world use and partnerships to pass Bitcoin one day. XRP would need to keep growing fast and be adopted by many major banks and financial firms.
Also Read: About XRP and What’s Next For It?
While we leave you to be the judge of this case, Bitcoin currently retains its advantage in scale, adoption, and reputation as the genesis of digital currencies. However, XRP has attributes like speed, cost, and banking integration that may drive mainstream adoption.
The crypto story is ever-evolving and the future remains highly unpredictable. But despite the long odds, XRP may one day achieve the unthinkable. Stranger things have happened on the blockchain frontier!