What is this coin called Ripple?
Ripple was released in 2012. It’s a technology that acts as a Cryptocurrency as well as a digital payment network for financial transactions.
Co-founded by Chris Larsen and Jeb McCaleb. The Coin is pre-mined and labeled XRP.
Ripple’s payment network is called RippleNet and the cryptocurrency is called Ripple XRP. RippleNet is a network that allows banks and other financial institutions to transfer money and other assets, and all transactions are then recorded on the XRP Ledger.
Ripple XRP is, of course, the currency used in the network for all payments and transactions. XRP helps to reduce the time and money related to cross-border payments. Each transaction can be processed in four seconds, while Ethereum takes over two minutes, Bitcoin more than an hour, and other systems between three and four days.
XRP can handle 1500 transactions per second, Bitcoin can only handle about seven reportedly at the same time, and that was one of the main reasons for the creation of BitCoin Cash.
Another great thing about Ripple, besides being fast and scalable, It is low transaction fees services. By the time of writing, Ripple was used by over 75 Financial Institutions Worldwide.
Ripple vs Bitcoin
The main difference between Ripple and BitCoin is that Ripple is a payment network for financial institutions. It can be traded but it was never meant as a payment method for shopping online. BitCoin wants to become a globally accepted currency replacing paper currency.
Unlike most Cryptocurrencies in the Market, Ripple XRP is not decentralized. Before launching the Cryptocurrency to the market, the company pre-mined the entire supply and is still in possession of more than half of them.
Ripple currently trades at $2.21. As mentioned above, you can’t mine Ripple because all the coins (100 billion) have been created and only 40% are in circulation and the rest is in possession of the company.
The company intends to release the coins into the market gradually, to avoid having a negative impact on the price. Around one billion Ripples per month.
Whether or not is a good investment, no one can be sure yet. It is true that since that the cryptocurrency has gained a lot of value since it was introduced (Ripple ranks at number 2 currently). Say you would have bought $1000 worth of Ripples exactly one year ago when you could buy them for $0.0065, to the date, you would have $40000.
It is impossible to know what direction the price would take in the future if more banks were to join Ripple and transform the financial sector with its method of payment, then the price will skyrocket for sure, but if the exact opposite happens and investors pull out, then the prices will plummet hard.
You can get Ripple the same way you can get most Cryptocurrencies (Except Mining), by creating an account on an exchange network like Bitstamp. You can store them in your online wallet. From there you can transfer it to other Ripple users. Remember that there are risks investing in cryptocurrencies, so make sure you don’t bite more than you can chew.
Now, after reading all of this, we can determine that there are at least five key differences between BitCoin and Ripple
1. Mining Process.
You can mine Bitcoins, but no Ripples.
2. Transaction Speed.
BitCoin stands at one hour while Ripple is just four seconds.
3. De/centralized exchange.
To Buy or sell Bitcoin you’ll have to use a centralized exchange that can crash. Ripples use its own secure network for transactions.
4. Transaction Fees.
BitCoin has no transactions fees while Ripple does have them.
5. Information Tracking.
Ripple manages a thorough ledger for its transactions and all other information regarding them. While BitCoin only tracks movements of Bitcoins.
Ripple is Growing
Ripple now has the 3rd largetst market cap as we write this and may be growing in value in 2018. As one coin that has a clear purpose from the beginning, many investors and companies are looking at Ripple as not just a currency but as a technology to use for their own means. Follow Ripple using the ticker XRP and track this exciting new coin.