One thing first: Ripple vs. Bitcoin means less that we are pitting the two cryptocurrencies against each other. Avid readers probably know best which coin is “better”. We simply present some differences and similarities that can help you get to know the two crypto projects better.
Do you want to know more about crypto? Then stop by our Academy!
Ripple vs. Bitcoin: The Basics
Bitcoin was launched in 2009 and is the first and best-known cryptocurrency. It goes back to the anonymous inventor Satoshi Nakamoto, who to this day has made no move to show his face.
Ripple, on the other hand, was launched in 2012. It was founded by Chris Larsen, Ryan Fugger and Jed McCaleb. It is designed to provide fast, low-cost international money transfers.
Technical differences between Ripple and Bitcoin
Bitcoin relies on proof-of-work consensus to keep the network running. Miners are used here who use computing power (work) to ensure that the network is secure.
Ripple, on the other hand, relies on the Ripple Protocol Consensus Algorithm. This involves relying on trustworthy sub-networks that keep the network secure.
Do you want to know more about crypto? Then stop by our Academy!
Use case: The benefits of the two crypto projects
Bitcoin was originally intended to be a global payment network. However, the narrative has now developed more towards “digital gold”. This means: Investors use Bitcoin to protect or increase their capital because they see it as a store of value.
Ripple, on the other hand, is designed as an international payment network. The associated cryptocurrency XRP serves as a bridge currency to switch between different currencies and payment options.
Conclusion: Ripple vs. Bitcoin
Our conclusion from the Ripple vs. Bitcoin comparison: We are dealing with two very different crypto projects here. If you are considering whether to include one of the two cryptocurrencies in your portfolio in the interests of diversification, you can find two coins with XRP and BTC that complement each other well from a use case perspective.
This might also interest you