The cryptocurrency world has plenty of transaction platforms that many newbies and users alike often interchange. We need to know the difference and specialty of every crypto coin, including Ripple price, to gain a stability in the finance industry. Ripple and Bitcoin being at the top ladder of cryptocurrencies have distinct differences, while some users argue about each function and purpose. As an investor, understanding the basics behind your digital asset is vital to your financial growth.
Ripple and other cryptocurrencies have definite features, starting with the operational systems. Often, people interchange Ripple with XRP, which are two different meanings.
You will discover differences in Ripples and other cryptocurrencies’ price, history, mining process, and other characteristics as you delve further. Here is a detailed compilation of every piece of information you need about the Ripple coin.
What is Ripple Versus What is Bitcoin?
Firstly, this article explains the general term of Ripple and Bitcoin and how we can tell the difference from their descriptions.
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Ripple is a privately owned company that created the cryptocurrency known as the RippleNet network and XRP. Hence, people often refer to these cryptocurrencies as Ripple. Asides from being a cryptocurrency, it was created to serve as a platform to provide cheap Ripple price, little payments or transfer assets. Bitcoin, on the other hand, operates on blockchain technologies to enable daily transactions. Bitcoin can serve as a medium for exchange and also a store of value.
Major Differences between Ripple and Other Cryptocurrencies
Understanding the difference in Ripple price and other cryptocurrencies provides knowledge on trading potentials. You did come across several differences between these two cryptocurrencies, but here are the main characteristics peculiar to each of them.
Bitcoin has existed since its development in January 2009 by Satoshi Nakamoto. Wherein three developers, known as Jed McCaleb, David Schwartz, and Arthur Britto, launched Ripples in 2011. By initiating cheap Ripple price, the goal is to cover Bitcoin limitations in the Crypto market.
In June 2012, Ripple developers launched the digital currency and started a company in September 2012, which was known as OpenCoin, now Ripples. XRP ledger recorded how its founders gifted eighty billion XRP to the company, with Ripples selling some of its XRP and putting the rest in escrow.
Primarily, Ripple serves the purpose of international payments, currency exchange, and remittances. Hence, allowing users to make transfers across borders at a fast rate. It is a good platform for foreign payments.
Bitcoin serves various purposes, which cuts down to our daily activities. It is not a private institution, and neither does it involve any third party. Users can maximize Bitcoin for day-to-day transactions such as buying a dress or patronizing a coffee shop. Hence, Bitcoin is a currency that is being adopted in the marketplace.
Speed of Transaction
Ripple and Bitcoin validate transactions at different rates, with Ripple offering a cheap and fast transaction rate. Meanwhile, it takes Bitcoin a long time to validate or process transactions. This is associated with Bitcoin decentralized currency nature. Therefore, Ripples can confirm every transaction within few seconds, while it takes Bitcoin about ten minutes to validate transactions. Ripple price is less since it requires less expensive equipment for validating the transaction than Bitcoin. Meanwhile, investors derive interest in Bitcoin as a store of value since a small number of coins are mined compared to about one billion XRP in Ripples.
In Bitcoin, miners work hard to verify every transaction, and a coin is a reward for verifying codes. Although it is difficult to predict the successful miner, it takes about ten minutes to validate a transaction. While Bitcoin operates purely on decentralization, Ripples work on both decentralized and centralized protocol. As Ripples involves banks in its transfer system, it remains transparent as much as possible.
Ripples came into the picture to replace the Bitcoin mining process that requires plenty of power consumption. As a result, Ripples provided a better means than the complex mining process. That is, Ripples is pre-mined without involving the blockchain ledger.
Ripple price is lower compared to the transaction fee attached to Bitcoin. More so, it takes a shorter time to complete the transaction. Bitcoin, on the other hand, requires minutes to confirm a transaction, which incurs extra costs.
In conclusion, the Ripple price has attracted many investors recently, which skyrocketed its position to fourth on the cryptocurrency ladder. We recommend investors to diversify their portfolios and look into other cryptocurrencies apart from Bitcoin, with Ripple being one of the fastest and cheapest these days.