Future of bitcoin and ripple
Indeed, bitcoin is the “gold” standard in the cryptocurrency investing universe. However, there are a multitude of other cryptocurrencies that are experiencing their successes and rising in popularity.
It’s simple to plump for a digital currency for an investor – they look at which ones are performing well and then decide, based on risk and reward, if they should invest capital. In other words, they try to identify what has upside potential and limited downside risk. If you decide to invest and mine bitcoin you have to know the hardware requirements for it.
The two most common ways investors approach this is through technical or fundamental analysis. Technical analysis looks at charts based on pricing patterns to predict future trends. Fundamental analysis looks at the value proposition for a cryptocurrency (or any security, for that matter). For example, Ripple is the company that is behind XRP, a significant and robust cryptocurrency. We will look at how XRP is performing and the events on the horizon that could be catalysts for increased value in this currency and its future alongside bitcoin.
Ripple Current Situation
First, let’s talk about where XRP currently trades. XRP has been relatively volatile over the past several months, but this shows a lot of momentum and opportunities for it to rise even further. For example, in April of 2022, XRP reached a price of $0.7 per unit. In many ways, this was a breakout because it had been hovering in the $0.27 to $0.43 range for quite some time. Moreover, it was a big deal because it was above what traders call “parabolic support” – or the price floor where XRP’s value would drop below $0.20 even if it were to re-test the previous high.
Ripple to create a decentralized ecosystem:
A B2B (business-to-business) company, Ripple seeks to improve how money is transferred worldwide. Industry experts believe that it has utility as a remittance method to lower cross-border payment fees for transactions in emerging markets. Sending money across borders, exchanging currencies, and converting currency all take time and create additional layers of costs with traditional wire transfers.
XRP has the largest supply of coins at 100 billion, but there is not much volatility associated with that total because they are classified as XRP tokens. Unlike other cryptocurrencies designed for retail investors, it is a cryptocurrency designed to be explicitly used by institutions.
Differences:
So, what is the difference between bitcoin and ripple? While both are cryptocurrencies, there are many fundamental differences between them. The most notable are in their respective supply structures and target markets. This structure helps to facilitate the high transaction speeds that the network targets. The company’s ultimate goal is to have an XRP coin reach $10 by 2022, so investors can take advantage of this uptrend.
Future of bitcoin and Ripple: Why will Bitcoin still dominate ripple?
Although bitcoin and ripple aim for very different markets, both have their place in the cryptocurrency ecosystem. Bitcoin will continue to dominate the cryptocurrency market because it is based on decentralized technology that requires an open Internet. It’s all about freedom of the individual and a free-flowing borderless currency.
Centralized cryptocurrencies are faster but not as secure as decentralized ones like bitcoin. For example, there are more transactions per second processed on the XRP blockchain than on bitcoin’s blockchain, which allows it to process payments more quickly.
Ripple and bitcoin: A closer look at their prospects
Both bitcoin and ripple have come a long way in their short histories as investment vehicles. Although they still have a ways to go before they can co-exist within the same market, they need each other to reach their ultimate goal. In addition, Bitcoin has proven its reliability as the standard currency of choice for investors because of its decentralized nature. Still, ripple is a notable addition with varying purposes within the cryptocurrency ecosystem.
What is going to drive XRP price movement?
The current climate for XRP seems to be one of indecision. Many forces at play could result in increased value for XRP and volatility for the price. As mentioned, there is a rise in demand for Ripple’s products and services from traditional financial institutions like banks, similar to how bitcoin’s popularity began from being a store of value.
The most significant risk facing XRP could be the loss of momentum in its relationship with its primary customer, Santander. J.P. Morgan and Santander saw Ripple as a way to improve their current cross-border payment method, but neither saw enough value in the company. As a result, it caused them to leave Ripple’s network, creating considerable downward pressure on XRP prices. However, ripple is still optimistic about its future since it sees great demand from around the world.
