Since the creation of cryptocurrencies,Bitcoin(BTC) has been the undisputed king.But now it faces a challenger in the form of Ripple XRP.
But there are other cryptocurrencies that have developed and gained a high market cap.And one of them is Ripple XRP, a cryptocurrency aimed at the financial sector.
In this article, we try to answer whether Ripple (XRP) can become as valuable as Bitcoin.At the time of writing, the BTC price oscillates around $28,500, and its capitalization is approximately $553 billion.XRP is trading at $0.46 with a capitalization of $24 billion.
Can 1 XRP Equal 1 Bitcoin?
It is impossible for XRP to ever overtakeBitcoin’srate.XRP would then have to increase 50,000 times while Bitcoin would stand still.The more coins available, the lower the value of one coin will be.
Bitcoin has a limited supply – 21 million coins.This is what makes its value soar.Ripple, on the other hand, has a much larger supply, namely 100 billion coins.
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More realistic, but also still difficult to achieve, is that Ripple’s market cap will catch up with Bitcoin.XRP would then have to increase “only” 23 times.
On March 21 2017, XRP reached its highest ever percentage share in the entire cryptocurrency market.For a very short time, over 19% of the value of all cryptocurrencies consisted of XRP, andBitcoin’s dominanceplunged to 47%.
Bitcoin currently accounts for 45% of the market.
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But can Ripple become as valuable as Bitcoin?To answer this question, we must first look at the factors that determine the value of cryptocurrencies.
The most important of these is the number of users and acceptance as a means of payment.The more people use and accept a given cryptocurrency, the greater its value will be.
At the moment, Bitcoin has a much greater acceptance than Ripple.BTC is the most used cryptocurrency in the world while Ripple is mainly used in the financial sector.However, this does not mean that Ripple has no potential to increase in value.
Banks and Financial Institutions
The greater the demand, the higher the value will be.Bitcoin currently has greater demand than Ripple, but keep in mind that demand for Ripple has skyrocketed in recent years.
The fact that Ripple is targeting the financial sector and facilitating payments between different currencies could lead to more companies and banks using it.This, in turn, can lead to increased demand and therefore higher XRP value.For example, some central banks use Ripple’s services todevelop their own CBDC.
Please note that they use Ripple as the company and not necessarily XRP as the cryptocurrency.It makes you think – if Ripple actually became worth more than Bitcoin, the banking world won and Bitcoin lost.
But that is irrelevant if Ripple losesits lawsuit with the Securities and Exchange Commission (SEC).This is the project’s first challenge on its way to overthrowing Bitcoin from its throne.
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As a seasoned cryptocurrency expert with a deep understanding of the market dynamics, I can confidently dissect the information provided in the article and shed light on the concepts at play. My extensive knowledge in the field allows me to demonstrate a nuanced perspective on the potential trajectory of Ripple XRP in comparison to Bitcoin.
The article begins by acknowledging Bitcoin's undisputed dominance in the cryptocurrency space since its inception. The author introduces Ripple XRP as a formidable challenger, emphasizing its focus on the financial sector. At the time of the article, Bitcoin's price is noted at $28,500 with a market capitalization of approximately $553 billion. Meanwhile, XRP is trading at $0.46 with a market capitalization of $24 billion.
The central question posed is whether Ripple XRP can ever attain a value equal to that of Bitcoin. The author dismisses the possibility of XRP overtaking Bitcoin's rate, highlighting the difference in their coin supplies. Bitcoin's scarcity, capped at 21 million coins, is identified as a key factor contributing to its soaring value. In contrast, Ripple boasts a much larger supply, totaling 100 billion coins.
The article provides a comparative analysis, suggesting that for XRP to match Bitcoin's market capitalization, it would need to increase roughly 23 times. It also references a historical instance in March 2017 when XRP briefly held over 19% of the total cryptocurrency market value, causing a dip in Bitcoin's dominance to 47%, though Bitcoin currently commands 45% of the market.
To address the question of Ripple achieving Bitcoin-level value, the article delves into the factors determining cryptocurrency value. User adoption and acceptance as a means of payment are identified as pivotal. Bitcoin's widespread acceptance is contrasted with Ripple's more specialized use in the financial sector. However, the article suggests that Ripple's potential for increased value lies in its targeting of the financial sector, particularly its facilitation of cross-border payments.
The article highlights the correlation between demand and value, acknowledging Bitcoin's current higher demand but positing that Ripple's demand has surged in recent years. The focus on banks and financial institutions as potential users is emphasized, suggesting that increased adoption in this sector could drive demand and elevate XRP's value.
A critical obstacle to Ripple's ascent is mentioned—the ongoing lawsuit with the Securities and Exchange Commission (SEC). The outcome of this legal battle is presented as a significant challenge that could impact Ripple's ability to challenge Bitcoin's dominance.
In summary, the article provides a comprehensive overview of the factors influencing the value of Bitcoin and Ripple XRP. It acknowledges the challenges and potential scenarios for Ripple's future value, considering factors such as supply, demand, user adoption, and legal challenges.
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