Sports Dhamaka posted a video to describe which could be a better investment between Bitcoin (BTC) and Ripple (XRP). The analyst who made the presentation made his choice by considering price performances and what the cryptos stand for.
What you'll learn 👉
Bitcoin as Digital Gold
The crypto analyst first described Bitcoin. He believes it is strong because many see it as digital gold. Bitcoin is also using the proof-of-work consensus, which makes it more energy-intensive.
The analyst compares the BTC mining process to gold mining. He noted that the major difference is that Bitcoin is minted digitally using ASUC chips that solve complex mathematical problems. Miners then get rewarded for solving the equation.
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Show more +Bitcoin scarcity is seen as one of its core strengths. Every 4 years, Bitcoin undergoes halving, where rewards are halved, making BTC scarcer. So far, nearly 19.8 million Bitcoins out of a maximum supply of 21 million have been mined, with experts saying the last Bitcoin won’t be mined until 2140.
XRP Usefulness in Banks and Financial Institutions
Regarding XRP, the analyst explains that, unlike Bitcoin, XRP wasn’t mined. Instead, its parent company, Ripple, minted the entire supply of 100 billion tokens before its market debut. They locked up 55 million tokens in escrow accounts and periodically released some to stabilize its liquidity and supply.
The presenter positions XRP as an alternative to the SWIFT International payment protocol used by most banks, stating that Ripple’s message is essentially that Ripple is selling itself as a payment system that can process payments faster and cheaper, and its core includes real-time gross payments, remittance transfers, and currency exchanges.
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BTC or XRP: The Verdict
A significant factor affecting XRP’s performance is what the analyst calls “the Wild Card: the SEC lawsuit. He notes that for the past 4 years, XRP’s price has been largely influenced by the drama surrounding this legal battle.
Comparing performance, he states that over the past 12 months, Bitcoin’s price surged 134%, while XRP’s price only rose 14%. Over the past 5 years, Bitcoin skyrocketed 487% compared to XRP’s 116%.”
When considering investment options, the presenter suggests that Bitcoin is your safer, more stable bet, often compared to precious metals. In contrast, XRP offers more upside potential but comes with higher risk, especially given the ongoing legal issues.
The analyst thinks Bitcoin is a better option for those looking for stability and long-term value. However, for those who want some more risk with the potential for higher reward, Ripple might be a better option.
The analyst encourages viewers to carry out their analyses before taking any investment advice.
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