Image Source: Getty Images
How does one asset steal another from the top and occupy that place? There is no easy answer because top spots can take many shapes. The most common of these (especially for stocks) is market capitalization. However, there are other quantifiers as well.
For example, in the crypto market, many crypto currencies are leaving the top dogs. Bitcoin (CRYPTO: BTC) Regarding trading activities, it is in the dust. However, regarding market capitalization, Ethereum There are realistic possibilities beyond Bitcoin. It may be a bit more famous and well known compared to cryptocurrencies, thanks to the investment assets associated with the secondary market (such as NFTs).
For other cryptocurrencies like Ripple (CRYPTO: XRP), to say the least, it will be difficult to become the next Bitcoin.
Bitcoin vs Ripple
Bitcoin and Ripple There are some differences. Bitcoin is a cryptocurrency with its own blockchain, while Ripple was created as a payment settlement system. This alone is a serious competitor to Bitcoin, as it is more likely to be adopted by existing banking / financial systems than Bitcoin (mainly a coveted investment asset).
However, Ripple fails as a real cryptocurrency. Bitcoin is much more likely to be accepted than Ripple when paying for goods or services over cryptography.
The basic technical difference between the two is that if Bitcoin follows a proof-of-work system to verify transactions, Ripple will use a consensus protocol.
Despite the differences many in favor of Ripple, the chances of becoming the next Bitcoin are quite low for several reasons. Currently, it is the 7th largest cryptocurrency by market capitalization, and Bitcoin is about 23 times as much as Ripple. Therefore, small ciphers are barely on track to drive Bitcoin out of the top spot. It may not be possible if the price of Bitcoin reaches 4 digits instead of the current 5 digits.
The same is true for price tags. At its best, Ripple couldn’t even exceed US $ 4 per unit, while Bitcoin exceeded US $ 67,500.
One area where Ripple can be seen as a more promising crypto investment compared to Bitcoin is its growth potential. Ripple far, even if you use reaching previous peaks as a comparative benchmark Surpass Bitcoin.. The largest cryptocurrencies are trading at a 43% discount during peak hours.
However, Ripple can increase its investment capital 2.5 times just by reaching its 2021 peak, and could grow about 5 times if it reaches its all-time high in 2017. Bitcoin needs to break through some expectations and caps to reach its goal.
If you are not familiar with the complexity of Cryptographic investment With a variety of cryptocurrencies, you can naturally learn about Bitcoin, the most famous cryptocurrency invested by everyone, from individual investors to institutional investors. It will never be the next Bitcoin.