Better Buy in 2025: XRP (Ripple) or Bitcoin?

More investors are warmed by the idea that Bitcoin could become a legitimate storage of value, particularly due to the availability of ETFs.

XRP was created by Ripple and has real use cases, set it apart from most other cryptocurrencies.

Bitcoin and XRP are separated from strong profits in 2024, but one looks like a better purchase than the others.

Bitcoin (Cryptography: BTC) It is the world’s largest cryptocurrency, with a market capitalization of $1.8 trillion, representing more than half of all the total amount of coins and tokens in circulation throughout the industry. It is in high demand from more and more investors, and they see it as a legitimate repository of value, which can pave the way for great benefits in the long term.

XRP (Cryptography: XRP)Meanwhile, it was created by a company called Ripple to standardize transactions within the Global Payments Network. So unlike most cryptocurrencies, there is a real purpose in the real world, and it can increase its value over time.

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Bitcoin and XRP offered 119% and 235% returns, respectively, last year, but they started in earnest in 2025, which one would be a better purchase?

The Ripple Payments Network is designed to help Global Banks resolve transactions directly with each other, which immediately flows across borders as it eliminates the need for intermediaries.

Ripple gives banks the opportunity to create XRPs and standardize these transactions. It’s just 0.00001 XRP (only $0.01 for $0.01) to send cross-border relocations, so it’s much cheaper than sending FIAT currency, which can attract large foreign exchange charges.

The total supply of XRP is 100 billion tokens. While 58.4 billion is in circulation, Ripple controls the other 41.6 billion and gradually releases it to meet demand. The U.S. Securities and Exchange Commission (SEC) sued it in 2020, claiming that XRP should be classified as financial security such as stocks and bonds.

If the SEC had won in court, Ripple would have been forced to change its business model or operated under a very strict regulatory framework. However, in August 2024, the judge ruled that in some circumstances, such as when XRP was issued to a bank, it could be security, but not when it was used in the transfer or traded on a crypto exchange.

Ripple was fined $125 million as part of the verdict, but investors saw the outcome as a victory. The SEC appealed the decision, but the agency’s new leader under the Trump administration suspended the case with the intention of reaching a settlement.

Things could be even better for Ripple as the new SEC chairman Paul Atkins was sworn in on Monday, April 21st.

Before accepting the top job, Atkins co-chaired a crypto advocacy organization called the Token Alliance, and he was a member of the advisory board of Securitize, a company that allows him to invest more in blockchain’s actual assets. Simply put, he may not get in the way, but support innovative crypto companies like Ripple.

Bitcoin does not have the true use of XRP, but it avoids regulatory scrutiny due to its unique set of quality. There is a fixed supply of 21 million coins fully mined around 2140, and is completely decentralized, making it impossible for a single company, individual or government to control it. As a result, by definition it is not financial security.

In fact, the SEC has approved dozens of Bitcoin Exchange Trade Funds (ETFs). This gives financial advisors and institutional investors the opportunity to own cryptocurrencies with the security of regulatory surveillance. Many of these investors were unable to own Bitcoin before the ETF became available, as it is dangerous to hold coins in their Digital Crypto wallets (potentially hacked).

Bitcoin ETF has so far attracted about $110 billion inflows, highlighting how much pent-up demand has been waiting for on the wings. Given that cryptocurrencies have consistently risen to new highs since they were created in 2009, a growing cohort of investors describes it as a digital version of gold. In other words, they believe it is a storage of legitimate value. ETFs allow more investors to take advantage of the idea.

Cathie Wood of ARK Investment Management believes institutional investors will ultimately be able to park 5% of their assets in the Bitcoin ETF.

However, it will provide Crypto with a market capitalization of $79.8 trillion. This is more than three times the total amount of all gold reserves on the ground ($22.1 trillion at the time of this writing). As a result, its price targets may be a little ambitious. If Bitcoin matches gold’s market capitalization, the price per coin is $1,052,000, which still represents a big return of 1,019% from here.

And there’s another potential tailwind on the horizon. The US government recently established a strategic Bitcoin Reserve, which will store 207,189 coins initially seized from criminal enterprises. With approval from Congress, the government could become an active buyer in the open market (the same way as buying money from time to time).

Bitcoin and XRP have retreated from their December highs as investors trimmed exposure to dangerous assets amid ongoing economic and political uncertainties. However, history suggests that a sale could be an opportunity to buy only one of these two cryptocurrencies.

Bitcoin has consistently climbed new record highs since it was created thanks to a pool of buyers who believe in its potential as a valuable store. Meanwhile, XRP has not raised a new record since 2018. Even the recent post-election rally did not reach the mark.

XRP is designed for the Ripple Payments Network, but Banks does not need to be used in practice. They can still benefit from instant transfers on the network, even if they use Fiat currency. In other words, successful Ripple payments do not necessarily lead to a higher price for XRP. In other words, speculators could play a much greater role in determining the value of XRP than demand from the Ripple Payments network.

So, Bitcoin may be a better purchase in 2025 (and beyond) especially now that the US government has established strategic preparations. One day, it’s hard to think of a bullish catalyst than the world’s biggest economic force could potentially become an active buyer.

Consider this before purchasing inventory with Bitcoin.

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Anthony di Pizio does not occupy any of the stocks mentioned. Motley Fool has Bitcoin and XRP positions and is recommended. Motley Fools have a disclosure policy.

Better Buy in 2025: XRP (Ripple) or Bitcoin? Originally published by The Motley Fool