What is Ripple?Ripple is the third largest cryptocurrency by market cap. It serves as an alternative to financial institutions such as credit card companies, banks and other financial institutions for individuals to send and receive money.
Ripple allows for real-time financial transactions by making use of the XRP token. To date, Ripple has partnered with a number of financial institutions and global firms to offer their services to customers.
At one stage, Ripple was known as the “bank cryptocurrency” but it is important to note that the network is open to everyone, not only banks.
Now, one needs to distinguish between Ripple Labs and XRP. Ripple Labs is the real-time payment system that allows banks/customers to send and receive money regardless of their bank or location. Ripple Labs also produces the Ripple Transaction Protocol (RTXP). Ripple is the network that the XRP digital currency runs on. It is interesting to note that XRP is independent of RTXP and can function on its own.
Ripple was co-founded by CEO Chris Larsen and Jed McCaleb in 2012. The company owns 60% of the total supply of tokens (100 billion).
Check out Ripple’s website.
So, is Ripple better than Bitcoin?Which is better – Ripple or Bitcoin? There are a lot of varying opinions in this regard. Let’s take a look at their similarities and differences.
As is the case with cryptocurrencies, both Ripple and Bitcoin are open sourced and decentralized currencies. Transactions are anonymous and recorded on a blockchain. There is a limit to how many Ripple and Bitcoin tokens can be mined and both can be transferred from peer-to-peer.
The major difference between the two lies with speed. Ripple’s processing time is lightning fast. It takes 3 – 5 seconds to perform a transaction. This is due to the fact that there is no waiting for block confirmation. Payment processing is automatic and cannot be reversed. It is also more energy-efficient than the king of cryptos. Ripple is owned by a private company whilst Bitcoin is owned by a community. There are almost 18 million Bitcoins in circulation and more than 43 billion XRP tokens in circulation, according to Coinmarketcap.
Basically, Bitcoin has given the world the option to change what they use to make and receive payments. Ripple, on the other hand, is changing the way or methodology we make payments.
When will the price of XRP explode?Of all the hundreds of cryptocurrencies, Ripple has surely tested the patience of its followers this year. Rumours have been spreading like wildfire of the possibility that the price of Ripple could reach $20, $589 or even over $1 000 in either 2019 or 2020. However, no one seems to be on the same page as to exactly when this price explosion will happen.
During the 2017 bull run, the price of XRP increased 352.6 times. Following last week’s blog “Bitcoin Halving 2020: What you need to know”, it is clear that there is a bull market that follows a halving event. Is it possible that there might be a significant Ripple price increase following the upcoming 2020 Halving event? We will have to wait and see. Remember that good things come to those who wait.
In the meantime, be sure to stock up on Ripple on AltCoinTrader.