Comparisons between two technologies are always prevalent in the new digital world. Like take the example of cryptocurrencies, people have been much interested in knowing the features of different digital currencies, and how they differ from each other. Today, I am going to tell you about how Ripple currency is different from the dominant one, Bitcoin. I will explain it by mentioning the features of this alternate currency. One must know that Ripple ranks among the top altcoins list. So let us begin now.
Before proceeding with the topic, I would like to tell you that if you chose to invest in any cryptocurrencies, then better beware of the fact that the crypto market is highly speculative and unpredictable. So invest that much which you can afford to lose.
Difference Between Ripple Currency & Bitcoin
Where the dominant crypto coin BTC finds its need for being a payment mode in the purchase of products and services, Ripple, on the other side, finds its use for settling payments, money transfer, and exchange of currencies for financial institutions like banks and other networks for payments. The main motive is the money transfer in a direct manner.
When we discuss Bitcoin, then it is impossible to overlook the digital ledger, blockchain technology because it functions upon it. In the case of Ripple currency, it does not have to work upon the latter technology, but instead utilizes the distributed consensus with the help of servers checking networks, and of course its token XRP.
XRP, also called the Ripple currency, finds its best use in the network of Ripple with the purpose of money transfer that takes place between various currencies. The present structure of settlement mostly utilizes the American currency as a base for the conversion between the currencies. This leads to fees for currency exchange and takes time. And this is the reason why it becomes so time-consuming in the process of transferring between bank accounts.
During the process, instead of American currency, the value of the transfer gets converted into Ripple currency or XRP. It results in the elimination of exchange fees and decreases in the processing of payments in a short time. The banks of countries including Australia, Spain, and Japan have stated about the experimentation and execution of Ripple in the use of their applications.
Ripple currency was never meant to be used for payment mode. But there are traders in small numbers who do accept it as online payment. There are goods like sauce, honey, and items like jewelry that can be purchased by it. Some vendors are equally excited about getting Ripple currency as payment, but somehow, it does not happen due to changes.
Trading Of Ripple Currency
If you want to trade for Ripple currency, then Binance and Poloniex are two major cryptocurrency exchanges to refer to. Although it is much easier to purchase it with government-issued currency, one needs to purchase two other major cryptocurrencies, BTC and ETH, initially, and then you can proceed with trading Ripple.
Is It Good To Invest In Ripple?
Of course, you can invest in Ripple currency since many organizations have been referring to its use in the manner it has gained motion. It has even affected the dominance of Bitcoin, and its other competitor coins in terms of rising in value. So yes, it will make a good choice.
In What Ways Ripple Currency Is Better To Bitcoin?
Bitcoin might hold the status of being the dominant cryptocurrency by many, but in some aspects, it is overshadowed by the Ripple currency. If you don’t believe this, then let me tell you that the dominant cryptocurrency is often criticized for its excess energy consumption for the mining process. But in the case of Ripple, it is not the same case. Rather, it takes genuine use of power owing to its technique of free mining.
Where confirmations regarding BTC transactions take away your valuable time. The transactions of Ripple currency do not take much time in confirmation. Also, the transaction cost is lower in comparison to Bitcoin, which is higher.
The total supply of Bitcoin is 21 million, but in the case of Ripple, it is 100 billion. The portion that has been left pending is sent to the escrow account. The structure of Ripple is framed in such a manner that it does not lead to any possibility of the unwanted use of XRP coins.
So this is all you need to be knowing about the Ripple currency. Today, in this article, I gave you an insight into this top altcoin. But other than that, I also mentioned how it outshines the dominant cryptocurrency Bitcoin in some aspects including the timing of transactions, value, consumption of power.
Ripple is at the advantage of the free mining aspect. Also, the transaction fee cost is lower in comparison to Bitcoin’s higher fee. To know how to mine Ripple on PC, it is better to flock on to the Cryptoknowmics site. You can also explore more other topics here.