It’s been more than a decade since Bitcoin was introduced as a new form of money. It represented a successful implementation of blockchain technology and became extremely popular and valuable with each passing year. Today, people all around the world know Bitcoin and see it as a great way to become a part of the future.
The success of Bitcoin paved the way for many other coins and tokens, including Ripple. When investors look for reliable coins, they often wonder about the difference between Bitcoin and Ripple coin. If you’re among them, keep on reading this article to get more information on this distinction.
But first, let’s get a general overview of these two popular cryptocurrencies.
As you already know, Bitcoin operates on an infrastructure known as the blockchain. The blockchain is managed by independent miners and node operators in various parts of the world. A significant difference between Bitcoin and PayPal or other digital wallets is that Bitcoin is not governed by a central authority. This level of decentralization gives power to people and also outperforms the traditional systems.
Since then, many companies have been working to roll out new coins into the market that could compete with Bitcoin. That’s where Ripple coin comes in to improve the existing crypto technology and offer more speed, security, and affordability.
Now, it’s time to take a closer look at the difference between Bitcoin and Ripple coin.
You can use many metrics as the basis of comparison between two cryptocurrencies, but four factors almost serve as the gold standard to judge any crypto. We’ll review every one of them below:
Today, many fiat currencies are often not backed up by gold and generated out of thin air. That’s not the case with Bitcoin or Ripple coin because both have a cap on their total supply. As you probably already know, the Bitcoin supply cap is 21 million in total. Out of that 21 million, more than 18 million Bitcoins are already in circulation, which can be one of the reasons for the recent spikes in Bitcoin’s value.
On the other hand, Ripple coin’s entire supply cap is 100 billion, out of which 45 billion is in circulation. More than a third of that 100 billion has been released into the market, while the rest are entirely under the control of Ripple. Unlike Bitcoin, there’s no Ripple coin left for mining as they are all pre-mined and periodically supplied to the market.
However, with Bitcoin, there’s no central organization controlling the supply. Instead, miners can solve complicated math problems and get rewarded with Bitcoins.
One of the primary issues faced by Bitcoin users is the well-known scalability problem, which can cause congestion in the blockchain and drastically lower the transaction speed. Of course, we need to keep in mind that Bitcoin is first-generation crypto that focuses more on decentralization and independence than speed.
On the flip side, the new-gen Ripple coin offers fast transactions with an affordable cost that suits international remittance and payment settlements. In most cases, Ripple coin transactions are verified in under a minute, while Bitcoin takes about 10 minutes to confirm every transaction on average.
Bitcoin is well-known for operating on a shared distributed ledger known as the blockchain. All transactions are recorded and validated on the blockchain, and no one can alter or erase them once they are added.
Ripple works on a consensus ledger that uses specialized servers to confirm transactions. Of course, some members of the network act as operators who are carefully vetted and selected by Ripple and play a critical role in the validation of transactions.
Bitcoin is a digital currency used for investing, trading, and even purchasing goods and services online. People can use it as a payment method, but no third parties or central authority controls the process. That is a crucial difference between Venmo and Bitcoin.
Ripple coin is mainly used as an alternative to the traditional payment methods such as SWIFT. Ripple users can use the coin to exchange currencies and even send money abroad while paying far less money and getting more speed.
New coins such as Ripple have gained massive momentum by offering superior technology, affordable rates, and fast transactions in the last couple of years. The rising price trend of Ripple, along with the incredible value of Bitcoin, has led many to think of entering the crypto market.
There’s no denying that you should tread carefully, as crypto is a volatile space filled with ups and downs. However, those that do enough research and invest reasonably reap great rewards because the future is crypto!
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