Cryptocurrency: the Ripple stronger than Bitcoin ? :


Crypto-currencies are on the rise. If bitcoin is the best known, it is far from the only one. In particular, we talked about the Ethereum which could have a nice potential. For its part, the price of the Ripple, or XRP, has increased by 36,000% in one year.

These electronic currencies, 100% virtual, keep talking about them. But can the Ripple really compete with bitcoin?

What is the Ripple?
Ripple Labs issued the first Ripple token in 2013. As for bitcoin, it's about using decentralized servers for transaction validation. In 2014, the Ripple, or XRP, specializes in optimizing inter-bank exchanges. It is for example to exchange a dollar against an XRP that we exchange for euros. This Ripple is a universal clearing currency and not a payment currency like bitcoin. It makes cross-currency transactions easier, faster and cheaper.

A stimulant of economic activity
With the Ripple, bank transfers are done in seconds. The protocol reduces cross-border transactions to a few seconds, which normally take several days, and reduces commissions. The acceleration of remittances can stimulate economic activity.

A surge in 2017
An individual can buy Ripples but only for speculative purposes. If the price has risen so much in one year, it is thanks to the partnerships of a hundred financial institutions like UBS, Uni Credit, SAP ... The capitalization reached 145 billion dollars which makes the Ripple the second crypto -currency behind the bitcoin and in front of the Ethereum. And this allowed him to jump more than 30,000% in 2017.

Its price of 1.50 euro for a ripple in early 2018, however, remains much lower than that of bitcoin, even if the latter is experiencing a difficult period having fallen below the 10,000 euros ... after flirting with the 20 000 in December 2017.

Not a "real" cryptocurrency
The Ripple, however, can not be fully equated with bitcoin. Its network is much less distributed and it is not a currency of payment. The protocol is very fast but less secure and the majority of Ripples is owned by a minority of investors.

Thus, 100 billion XRP were issued but only 40% are distributed. As for bitcoin, it is a decentralized currency but volatility is limited. Ripple Labs owns 60% of XRP 100 billion and two former executives own 20%.
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