And these entities are for the most part selected by the Ripple company. Out of nearly 1, nodes, a group of 33 are selected by the whole group to finalize transactions. Source: cryptobriefing. Ultimately, it is very clear that the Ripple company and those closest to it have a tight grasp on cryptocurrency. Is this necessarily bad? It depends on what your objectives are. XRP was created to be the default settlement currency of Ripple's payment system.
It is designed to be fast and efficient, which it is, but also so that control is retained by the Ripple company. Arguably, though, they should be as interested as any XRP owner is seeing the currency succeed, right? Without a doubt, this is the biggest difference between Ripple and Bitcoin. This is the essence of the cryptocurrency movement.
Is Ripple worth owning? In my humble opinion, not really, and the reason is two-fold. Furthermore, nothing is stopping the company from creating more XRP if it is deemed necessary. It might want to do this if it felt like XRP became too prohibitive for users to enter its payment system.
Ultimately, the company behind XRP is trying to promote its payment system, and the value of the currency falls second. XRP is not a store of value, rather a tool. The big problem I find here is that, if things go south for XRP, what is to stop Ripple from using a different cryptocurrency as a settlement base for its system? Or, even, starting another one from scratch? And, for that matter, what is to stop Ripple from increasing the supply of XRP if and whenever it deems it necessary?
These are the inherent problems of centralization, and while XRP is a tool that makes life a lot easier for banks, it is still, at its core, supporting a centralized system. Takeaway Bitcoin is a store of value, with a decentralized nature and a limited supply. We know it will since Ripple is still hoarding most of it. Can Bitcoin and Ripple coexist? The proof-of-work system driven by Bitcoin mining contributing hash power to the network to keep it secure, and chugging along was the solution necessary to create the future of finance.
XRP utilizes a consensus ledger and series of network servers to validate transactions. As a result, XRP is significantly faster and more flexible than the Bitcoin blockchain. Bitcoin blocks are generated roughly every ten minutes, transactions that pay the highest fees or happen to make it to the top of the pool can be processed in this timeframe, but it can take longer from there depending on overall transaction fee costs, how many transactions are currently pending in the meme pool, and more.
The number of transactions per block can reach as high as 3,, so the cryptocurrency currency has a capacity for roughly 3, per ten minutes. These are just some of the ways that make Ripple better than Bitcoin. Bitcoin also has a deflationary supply mechanism, called the halving, which reduces the supply of BTC that enters the market by half every four years.
The most recent halving decreased the block reward miners receive for contributing hash power to the Bitcoin network, from Unless the private keys to that Bitcoin were passed along to next of kin in some way, or Satoshi is still alive, those 1 million BTC are potentially lost forever.
In the early days of Bitcoin, the coins were hard to come by and had to be generated through mining. The earliest users ended up with large sums, with many who also lost their private keys over the years. Adding in all the users who have lost small portions either by passing away, forgetting passphrases, or sending assets to the wrong address, the supply could be even less than believed.
The rest is held in an escrow account by Ripple. Bitcoin also has a much larger market capitalization despite XRP having a much larger token supply. Use Cases and Target Market The two assets also aim for an entirely different use case, or at least Ripple seeks to use XRP to disrupt a very different market that Bitcoin would be utilized for.
Bitcoin is used as a store of wealth and insurance policy against the unknown, and a hedge against inflation. Because there will only ever be 21 million BTC, yet dollars and other fiat currencies are being printed at a rapid pace, the cryptocurrency is an excellent hedge against inflation.
When it comes to if you should invest in Bitcoin or Ripple, or if you should buy Ripple or Bitcoin for the long term, the key to this decision is in looking at past price chart history and future price forecasts. Bitcoin Vs Ripple: Historical Price Action Reviewed Investing in either asset at any point before would have resulted in a fortune being made.
Depending on when someone bought into these assets in or , they could still be underwater. After the crypto bubble popped, these assets fell to bear market lows but have spent the last three years trying to break out from downtrend resistance.
According to technical analysis charts, both cryptocurrencies, depending on how far they go this time around, could make them a once in a lifetime trade at current prices. It started its lifecycle out at nearly worthless, trading at below a penny. Now each crypto token has broken out from downtrend resistance and is targeting much higher prices and potentially a new bull market and incredible returns. Investing in any cryptocurrencies is risky but can also lead to profits that are impossible in other markets.
XRP is also very new in terms of its place in the financial world and is decades away from becoming what it is setting out to do.
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