Key Points – BITCOINS is Supported by Giant Companies
Ripple is Supported by Many Banks
BITCOIN is proof of Work [POS]
RIPPLE is TOKEN
Price is rising because many banks are purchasing this for future use.
Earlier, there were very few people who are aware of cryptocurrency but now many of them are familiar with this digital currency. The credit of its popularity has gone to the number of operators and miners who are continuously mining this virtual currency and make the profit out of it. This is better than traditional money transaction system because in the traditional way the intermediary between banks and financial institutions and they charge transaction fees from the users. But the term cryptocurrency is a bit different than this. Here the transaction is made online or digital by using the Blockchain system. Miners are the main digger who mine the coins online and get rewards. There are a lot of cryptocurrencies available like Bitcoin, ripple, Litecoin, Ethereum, Dash, Zcash, etc. Now, most of the vendors accept the cryptocurrencies for the online marketing.
The top rated and highly performed cryptocurrencies are Bitcoin and Ripple. Let’s understand both currencies and how they differ from each other.
What is Bitcoin:
Bitcoin is first digital or virtual currency created by mysterious developer “Satoshi Nakamoto” in 2009. Bitcoin charges fewer transaction fees than traditional online payment tools. These transactions are operated by the decentralized authority. Bitcoin is not physical in nature. All the transactions are kept on the public ledger in the cloud and they are verified by miners who are expert in the validation process. In Bitcoin, the balances are stored safely by using the public and private keys. These keys are a long chain of statistics and letters linked via a mathematical encryption algorithm. The public key indicates the address shown to the public at which others make payouts and the private key is the secret which is used to authorize the Bitcoin transactions.
The main players are miners who mine the Bitcoin and compete for the mining. Miners can be anyone either individual or company. People tend in this field for the reward which can be generated by mining new coins and transaction points paid in Bitcoin. There is many hardware used for this mining work, for example, Graphic process unit (GPU) and an Application-specific integrated circuit (ASIC). The market of Bitcoin is surging day by day. Today the market cap of Bitcoin (BTC) surpasses $7 billion.
Also read – Fees to Transfer Bitcoin from Wallet to Wallet and Exchange to Wallet
What is Ripple
The concept of ripple is the bit different than Bitcoin. It is created in 2012 by Chris Larsen and Jed McCaleb. It is an open source and peers to peer payment system. It allows transfer of money in any currency, whether, USD, Bitcoin, or litecoins.
RippleNet links banks and other financial institutions and permits them to transmit money and other properties through the network. All transactions in ripple are logged on the decentralized XRP Ledger.
Ripple used centralized payout network for all dealings, reducing the time and currency related to worldwide payments. Each transaction through the system is administered in just a few seconds. Other cryptocurrencies rather than ripples take more than two minutes for the transaction. Ripple is the ease to the rigid online transactions like, credit cards, PayPal, banks, and other financial institutions that charge transaction fees and delayed process. It is the fastest way of money transmission.
Also read – Transaction Time of Litecoin Bitcoin Ethereum Ripple
How Ripple is different from Bitcoin?
Ripple and Bitcoin both are different terms. Bitcoin is a digital currency whereas ripple is a link between banks. The common difference between Bitcoin and ripple is as follows:
• Bitcoin is mined and created by miners who are expert to crack mathematical solutions. The quality hardware is used to mine the Bitcoin whereas ripple has created before the distribution of them. Since 2012, around $100 billion ripple has been created out of which $55 billion has been distributed to users, charitable establishments, and strategic partners.
• In Bitcoin, the blockchain process is done by mining and competing for currency. It takes time for validation and authorization of the transaction. So the speed of transaction is slow whereas ripple takes few seconds to finish the transaction.
• Bitcoin uses the decentralized exchange to buy or sell the coins that are not very much secure whereas ripple uses its own network to buy and sell. So ripple is more secure than Bitcoin.
• Ripple (XRP) token is below $1, which is eye-catching for risk-takers. Today the price of Bitcoin is $5600, which makes it expensive for average investors.
Growth and future predictions of Ripple:
Ripple is the single currency that beat the South Korean’s ban imposed on exchanges. Ripples hold the market by steady circulation of the ripple currency that is $55 billion and beat the competition. The whole credit to the growth of ripple is going to Japan which is very much friendly with cryptocurrencies. Japan and South Korea used ripple to test international fund transactions. In this test 61 banks are involved.
Ripple has been created for banks and international money transfers It has surged this year, surging around 23,900% to come to be the world’s third most valued cryptocurrency. Ripple is growing rapidly. When looking at the past records of it than we can find that the market capitalization just doubled on almost every next day of trading. The price of this currency is more affordable than other currencies so investors like to buy them. In 2017 ripple has jumped around 7000% and the market capitalization of this is increased approximately 7700%. So it is good to invest in ripple.
Also check – Best Performing Future Crypto Coin
Ripple and Bitcoin both are a good way to invest. Ripple is short-term whereas Bitcoin are for long-term. The banks may just facsimile Ripple and take it secretive. They hire the best Ripple developers as consultants to do the transactions. If individuals want to invest for short-term then ripple may be the best choice and if stick with long-term then goes for Bitcoin. In 2017 ripple has performed out of the box, has grown around 36000% which is nearly tail end of the year. Bitcoin also grew around 1000% but it is not fit the mark. In Bitcoin, there is no interference of the third party called banks and financial institutions is there whereas in ripple because of centralized in nature, the link of banks and financial institution is there.