The crypto marketplace is an exciting new dimension in the world’s financial landscape.
Even when Bitcoin was the only cryptocurrency, the concept was a bit complicated to understand. Now with hundreds of cryptos available, the landscape can be difficult to navigate, but our Cryptocurrency series breaks it down into easy to understand chunks.
Many economists and analysts see cryptos as the eventual future of world currency. One way to understand cryptos is to use the same methods that are currently in place to compare world currencies. So instead of comparing a national currency to the US dollar, we will compare cryptos to Bitcoin.
XRP is the designation for Ripple, one of the top five cryptocurrencies. You can find the TransferGo Blog intro to Ripple here.
Speed of transaction
In an age of almost instant data transfer, traditional financial institutions often seem to operate at a snail’s pace. One of the key traits of cryptos is fast transaction times.
Bitcoin is the slowest of the cryptos with an average transaction time of 9 minutes.
Ripple’s transaction time averages about 4 seconds.
Who’s behind the coin?
Bitcoin was established by an anonymous individual (or group) and is supported by a community of users and miners.
Ripple on the other hand was founded by Ripple Inc. which totally controls the crypto. No mining is possible.
Market capitalisation is the most common method for comparing cryptos.
Bitcoin as the number one ranked crypto has a market cap of over $144 billion. The total number of Bitcoins available is 21 million.
XRP has a market cap of almost $35 billion. The total number of coins available is 100 billion. In order to prevent an oversupply of coins on the market at any point coins are held in escrow and released on a predetermined schedule.
Bitcoin was established to provide a safe and secure decentralised currency which allowed Bitcoin holders to pay for goods and services worldwide in basic anonymity.
Ripple on the other hand is a centralised crypto controlled by Ripple Inc. Ripple has close ties with the banking and financial industry as it was designed as a bridge currency to allow individuals and institutions transfer fund anywhere in the world quickly and inexpensively.
Bitcoin fees have fluctuated widely since its introduction. Transaction fees are based on the amount of time to process the transaction and can range from 0.22 to 0.45 per transaction.
Since Ripple is a centralised crypto with an infrastructure that allows for thousands of transactions per second the transaction rate is low, currently about .004 per transaction.
You can find out more about cryptos by checking the currency section of the TransferGo Blog. TransferGo now offer an easy and inexpensive way for our customers to buy and sell Bitcoin, Ripple, and other cryptos. To stay up to date on this new crypto service, simply download the TransferGo app.