The age of cryptocurrency, which has opened up new avenues and opportunities for revolutionizing how we trade and do business, is currently the most famous monetary system. You can check btc code app to get an automated trading experience by accessing the best-in-class trading bots and strategies. New currencies are popping up left and right, as well as new solutions to old problems.
Ripple may be one of the youngest currencies on the block, with Bitcoin holding the title of “the original,” but it’s been making waves in several ways that are made it stand out from the pack. So is ripple indeed superior to Bitcoin? Let’s take a closer look at what separates these two market giants.
An Overview of Ripple
First, ripple is already available for commercial use by banks; this type of integration means that adoption can happen quicker than with any other currency (barring Ethereum). Ripple is backed by real-world banks, meaning it’s not beholden to artificial market forces. Finally, it provides stability that’s simply absent in Bitcoin.
Ripple is well on becoming the go-to currency for institutional clients seeking an easy-to-use, cost-effective solution for transferring money. It works with central banks like the Bank of China, SWIFT and the National Bank of Abu Dhabi and has been dubbed “the bank transfer system of the future.
It’s even been touted as the currency of choice for transferring funds to the next generation of mobile users, who rely on their mobile phones more than any other device. But, of course, it also helps that it’s being used by several major companies and organizations, such as Western Union, NASDAQ and Santander.
Ripple is also entrenched in the Asian market with several partnerships with central banks and payment providers, making it that much easier for Asians to send each other money without an intermediary. The difference between Ripple and Bitcoin is one of maturity. It has all the benefits of Bitcoin but can do much more because it has the backing and support of many real-world institutions.
Differences between Ripple and Bitcoin:
Ripple has been compared to Bitcoin for some time now, with the two having a similar architecture despite being different currencies. While they share some common ground, ripple is vastly different from bitcoin in a number of ways. For starters, it’s faster and much more scalable. In addition, ripple can handle multiple types of currency transfers.
Because it’s already commercially available, ripple doesn’t deal with scaling problems like Bitcoin does. It can handle upwards of 1500 transactions per second compared to Bitcoin’s seven-per-second max capacity.
How does bitcoin outperform ripple?
While many people like to compare the two, there are some drawbacks to using ripple that may convince you that Bitcoin is still a better choice for you. For instance, while it’s available on several exchanges, it’s not as widely used or accepted as Bitcoin. In addition, while most banks and financial institutions have been unwilling to accept Bitcoin, they have been much more welcoming of ripple – with the exception being the recent development regarding the IRS trying to tax crypto transactions.
Ripple has indeed gained much traction in Asia. Still, it has not gained any natural ground in North America due to its lack of acceptance by Canadian and American banks. It’s also not entirely as decentralized as many people believe, given that the company behind ripple owns most of the currency. It means that the company can manipulate prices by flooding the market to their heart’s content – something that was well-documented during the 2017 Bull Run. Additionally, many are still concerned about security. While ripple has been designed with security in mind, it remains much less secure than most cryptocurrencies on the market today.
Unlike bitcoin, however, ripple can be easily integrated as a payment option into any platform or system thanks to its open source development model and flexibility in terms of standards for transacting with each other transferable currency in real-time anywhere in the world. It’s also a lot less intimidating for new investors as it’s much easier to understand, especially for people new to crypto.
Ripple is making significant inroads and provides a unique opportunity regarding the payment processing system. It still has a lot of work to do if it wants to surpass Bitcoin, but with its present rate of adoption and growing list of backers, that may not be too far away.
Can Ripple Outclass Bitcoin?
In the end, no cryptocurrency is perfect because they are still new, albeit promising. As such, Bitcoin is by far the most well-known and has taken the lead in many regards. Undoubtedly, it has its strengths and weaknesses, but XRP might have a few things to offer that make it a valued competitor to Bitcoin.
Ripple can potentially do better with its capacity to handle more transactions simultaneously while providing faster and lower transaction fees through its unique blockchain system. In an odd way though, XRP may not be all that different from Bitcoin in the end, even though others would like to believe otherwise. But if ripple needs to outclass bitcoin, it must have market adoption as bitcoin and offer users a decentralized ecosystem.