Can Ripple Really Outperform BTC and ETH?
Ripple has been making headlines in the past few weeks and currently sits in the second position by market cap across the world of cryptocurrencies, behind Bitcoin but ahead of Ethereum. But can it outperform the market leaders? And should you buy some Ripple? Here are three reasons why investors and traders may consider Ripple’s XRP token, as well as reasons why they may choose to steer clear. Maybe you can start using Bitcoin Revolution to purchase and sell Bitcoin.
What is Ripple?
It’s also known as the Ripple Transaction Protocol (RTXP) or Ripple protocol. It can deliver funds in seconds. Unlike Bitcoin or Ethereum, it does not use mining to verify transactions. Instead, an independent group of validators take turns proposing and voting on which transactions to approve.
How does Ripple work?
Ripple’s protocol is underpinned by a shared public ledger, known as the XRP Ledger. The ledger uses a consensus process that allows for payments, exchanges and remittance in a distributed process. It is open source; its design is public, nobody owns or controls it. While Ripple has been built as an enterprise solution, it can be used by anybody – including people who want to do something with cryptocurrency for the first time.
Ripple’s goal is to create the Internet of Value – one global network that connects all types of value and money together just like information on the internet.
The XRP Ledger uses what are called consensus nodes which are run by validating servers all around the world to validate transactions without any central authority needed.
Why is Ripple different from BTC and ETH?
One that has garnered a lot of attention is called Ripple, or XRP for short. It has seen its share of ups and downs in recent weeks as it dropped by more than 20% one day only to go up by 10% the next. There is no question that this is an extremely volatile currency, but can it outperform Bitcoin or Ethereum?
It may sound like a crazy idea, but all three currencies have similarities and differences that will help answer this question. For starters, Bitcoin was created in 2009 as an open source software that anyone with an internet connection could access.
What are the benefits of Ripple?
Ripple (XRP) is a cryptocurrency that was created in 2012 with the intention of being an alternative to Bitcoin. It was designed with a different purpose in mind than Bitcoin, which is why it has been able to coexist peacefully with other cryptocurrencies. Here are some of its benefits:
>Ripple is scalable, meaning that it can handle a much larger volume of transactions without losing speed or efficiency; >It offers cross-border payments which allows for near-instant transactions across borders; >The time required for transactions to be verified is less than one second; >It has lower transaction fees than other cryptocurrencies. As of this writing, the average Ripple transaction fee is $0.0004 USD.
What are the risks of Ripple?
Ripple is a great way to diversify your cryptocurrency portfolio. It also has much lower volatility than Bitcoin or Ethereum, making it more suitable for a long-term investment strategy. However, the risks of investing in Ripple are that it is heavily centralized, meaning that the company has total control over the network. This could mean that if something goes wrong with Ripple’s team or infrastructure, then investors would be left without any protection.
Ripple also does not have a fixed supply like Bitcoin and Ethereum do, meaning that there will eventually be more Ripples than there are Bitcoins in circulation. What this means for investors who want to hold onto their coins indefinitely is unclear at this point because we don’t know how the market will value these additional tokens.
The price of XRP has appreciated by more than 25,000% since the beginning of 2017 and is now trading at $2.65 per coin. This might make many people believe that Ripple can outperform Bitcoin or Ethereum, but this assumption is wrong. To start with, it is important to understand that Ripple’s market share is not as large as Bitcoin’s or Ethereum’s. As of May 3rd, 2019, BTC has a 45% market share while Ethereum has 27%. If you take into account all the coins in the top 20 by market cap, including Ripple, then Bitcoin still dominates with a 54% market share against 22% for Ethereum.