XRP (Cryptography: XRP) and Bitcoin (Cryptography: BTC) Both are heavyweight cryptocurrencies that are actually guaranteed to be around for a long time. But that doesn’t mean they’re worth equally worthy of investors looking for a rather conservative long-term holding. It also does not guarantee that it will perform as well.
So which of these giants are ripe for the place in your portfolio for the rest of your investment career? Let’s look into cases where each person can understand this.
XRP is a coin designed as the ultimate solution for handling cross-border payments and transactions, especially between financial institutions. To do this, there is a protocol that allows variators to mark consensus on the outcome of each transaction, reduce the chances of fraud, and create a network that can quickly process many transactions.
Usually, charges related to XRP forwarding can be ignored. Penny fractions clear the transaction within seconds. This makes it much faster and cheaper than other blockchains like Bitcoin and Ethereum.
It is no secret that XRP is the dominant fintech cryptocurrency today, with a market capitalization of over $130 billion. In the past five years alone, prices have risen by around 800%. That level of consistent demand is worth holding it at least a bit.
But can that status last forever and continue to grow? Here, the photos are less obvious.
There are many legacy systems for processing international payments. There could be more to arrive in the future. And despite the size of XRP, there may actually be no moats to protect market share from other payment businesses and cryptocurrencies. So, while it won’t immediately reach zero, its leadership position is not guaranteed.
Bitcoin does not need to be introduced.
As the most valuable and oldest cryptocurrency, the entire sector moves in response to price fluctuations in Bitcoin. It is also somewhat predictable in the long term, as regular halving ensures that supply growth rates are reduced about every four years. Furthermore, there is a hard cap in the number of Bitcoins that can be produced (total of 21 million), making it an inherently inflation-resistant asset.
So when combined with the fact that the major changes in core protocols are very low, it becomes a relatively conservative investment. Its market capitalization weighs at $1.9 trillion, and rarely experiences any serious volatility associated with most other cryptocurrencies. And there is reason to believe that coins are more deeply integrated into the global financial system by including them in numerous exchange trade funds (ETFs), so there is reason to believe there is a stable future buying pressure and even less volatility.
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