On this bear market, Ripple is using all their resources to promote themselves. Even Cory Johnson – the Chief Market Strategist of Ripple- got involved in this Ripplemania. In the latest news, he declared that XRP is now used more than Bitcoin :
-Bitcoin has some real technological limitations
-The digital asset that show fundamental use cases will develop a fundamental value
-XRP is being used more than Bitcoin being used as of today
— Steven Diep (@DiepSanh) November 23, 2018
And he also explained that Bitcoin have some limitations such as the low transaction per minute. We talked about this yesterday, and even though Bitcoin have some limitations regarding that – it still managed to transact 25% of the MasterCard’s volume yesterday. He also claimed that the way it works its ineffective and the mining consumes way too much power. Also, 80% of tits mining power its coming from China.
“There’s a tremendous amount of power that Chinese miners have over the Bitcoin network. I think that this was unintended by the designer of bitcoin, whoever she is. [But] there are other technologies. My company [Ripple Labs] has chosen to develop technology around XRP.”
He then proceed talking about the Ripple’s transaction per second limit, how Ripple is superior to Bitcoin and how Bitcoin was ‘poorly designed’. While we respect its point of view, its important to understand certain factors when we’re talking about Bitcoin & Ripple:
- Use-cases are different – I think this is one of the things that Bitcoin maximalists or Ripple fans forget. Bitcoin was created so that people can transact value over a peer-to-peer network – without a central governance system. Ripple on the other hand – was created on a technology that allows a High number of transactions-per-second with a negligible fee. Their main clients are financial institutions and PSPs ( Payment Service Providers).
- XRP was not mined – XRP was created by Ripple Labs; Well, at least that’s how they claimed in 2013 – in 2018 they claim that: “Ripple the company didn’t create XRP; 100 billion XRP was created before the company was formed”. Mike Dudas created a thread about this on Twitter. Ripple Labs own a portion of Ripple, Chris Larsen owns another large portion. And the rest of it its for the people. There’s a certain risk on this, as the companies can sell large amounts of Ripple at a certain point and crash the price. The market can be manipulated by these large owners as they wish. On Bitcoin, its a bit different. There’s a mining process where miners are incentivized for mining BTC with a reward per block that will halve once 4 years reducing the inflation. The mining process may be a large power consuming one – but at least there’s a bit of decentralization.
Why is XRP Used More Than Bitcoin?
XRP indeed may be used more by Bitcoin. But there’s more value transferred over the Bitcoin Network. XRP is used mostly by financial institutions to solve the problem of transaction delays – a transaction that take days for bank to transfer it can now be transferred in a matter of hours. But the funds are not sent in XRP – but in a FIAT currency. Banks and other financial institutions use Ripple to confirm the transaction easier – not to transfer the value trough it. So, in terms of usage – XRP may won at this chapter as their partners have a high number of transactions daily.
But in terms of value transferred – Bitcoin wins. Using Bitcoin, people send value from point A to point B in a matter of minutes and even if the transaction is the process to the volatility of the price – exchanging the BTC to FIAT is easier than exchanging XRP to USD. There’s more liquidity in BTC than its in XRP and people know that. For low transactions of $50 – $1,000 – both of them are good. But for high amounts of millions or hundreds of millions, Bitcoin is better as the funds can be easily swapped to FIAT.
In conclusion, XRP may be used more than Bitcoin – but the Bitcoin network have more value exchanged trough it daily. Which one is more valuable? Its up to you to decide.
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.