The world of cryptocurrencies has seen rapid and exponential growth in the last decade. Since the public inception of Bitcoin in 2008, the crypto-market has seen the creation of over 1500 coins. Of the 1500 coins, Bitcoin has remained to be the most valuable and popular by far. Perennial challengers to Bitcoin have been Ethereum. however, in the last two years, there has been a formidable challenge for Ethereum in the form of Ripple’s XRP. Analyst and enthusiast are continually talking up the chances of Ripple overtaking Bitcoin in the near future.
What is Ripple?
Although it was officially launched in 2012 the idea behind Ripple was first conceived in 2004 as a real-time cross-platform payment system. Ripple is designed as a platform to integrate diverse payments systems, with an aim of eliminating exorbitant transaction fees and processing delays. In contrast to other cryptocurrencies, Ripple is aimed at complimenting traditional financial systems rather than act as an alternative.
Comparison against cryptocurrencies has largely been pegged on market cap. But could there be more than what meets the eye? For a long period now Ethereum has performed better than Ripple in terms of market cap with occasional surges when Ripple has overtaken Ethereum. The general feeling amongst most observers is that Ripple is slowly catching up. As of September 23, 2018, Ethereum’s market cap was pegged at $24.49 Billion against Ripple’s $23.09 Billion. The margins are growing thinner and it’s only a matter of time until Ripple eclipses Ethereum’s market cap.
Away from market cap, its where the comparisons get even more exciting. Ripple has managed to trump both Ethereum and Bitcoins in terms of transaction fees, speed, and scalability. In one second there are over 1500 Ripple transactions while Ethereum and Bitcoin trail with 17 and 10 respectively. The average transaction time for Bitcoin, Ethereum and Ripple are 1hr, 2mins, and 4secs respectively. In terms of transaction cost Ripple still tops with $0.004 per dollar against Bitcoins $7 and Ethereum’s $0.5. From the above statistics, it is evident that Ripple is not only pushing for the number 2 spot but is also leading in some aspects.
Can Ripple overtake Bitcoin?
Ripple’s appeal to large financial giants, remains to be its strongest weapon for wrestling Bitcoins perennial dominance. Ripple’s enterprise-ready culture is largely attractive for global adoption. Currently the company boast of over 100 partners in the financial and banking industry. While several projects have been attempted to facilitate cross-platform payments none has been better received than Ripple. Honestly, both Ripple and Ethereum deserve to be at the top for their revolutionary work in online payments and applications structure respectively. With a difference in purpose and role, it would not be factual to refer to them as direct competitors. As to who is mostly like to dethrone Bitcoin from position one Ripple seems to be the more practical bet for now.