In 2018 Ripple Will Overtake Bitcoin – Is This Really Possible?
Ripple has managed to suddenly snatch the second spot from Ethereum on December 30 in terms of market capitalization.
Such a price spike has increased the curiosity among industry pundits as Ripple skyrocketed and hit a market cap of $86 billion around 12:00 GMT, allowing it to surpass Ethereum by $20 billion.
This is just one of the biggest milestones Ripple has achieved this year after having been lagging in terms of price growth when compared to its other contemporary cryptocurrencies.
The buying activities were mainly concentrated and originating from South Korea where around 31% office workers are investing in cryptocurrencies. The country’s leading exchange Bithumb was reported to have processed about 30% or $1.6 billion of the transactions which have exceeded a staggering $5 billion trade volume on December 29.
Just as many cryptocurrency enthusiasts and traders closely monitor the price movements of Bitcoin, Ripple’s price surge of more than 350 times its value this year has led many wondering whether it could skyrocket further and eventually unseat Bitcoin from its current thrown.
XRP, also called Ripple, is up more than 30,000% in 2017 https://t.co/CWVsiylq2E
— The Wall Street Journal (@WSJ) December 30, 2017
Several industry pundits believe that it would not be surprising if this happens in the near future. There are several factors that could make this possible, and one of which is the difference in the transaction time.
Transactions per second
On average, a Bitcoin-based transaction could take around 66 minutes (7 transactions per second) whereas a transaction can be completed within a mere three seconds with Ripple.
“At the moment, it takes between 2 and 5 business days to transfer funds from one bank to another, whereas Ripple can process these transactions in seconds flat and for a fraction of the cost”.
Furthermore, the transaction cost between these two also shows a massive difference. Bitcoin’s average cost per transaction is around $28 while it only costs around $0.0004 for Ripple.
According to IMTC, the Ripple network seeks to provide secure, instant, and almost worldwide financial transactions without any chargebacks.
Another big plus for Ripple is that traders can buy or sell XRP tokens using its own secured network. On the other hand, Bitcoin traders need to utilize a centralized exchange in order to either buy or sell.
Ripple likewise supports any currency (Yen, Won, Dollars, etc.) and other cryptocurrencies such as Litecoin. In addition, Ripple can handle complete end-to-end-transactions. These could also cover conversions of foreign exchange.
One major difference between these two is that Ripple is more focused on B2B. Bitcoin is built on a network of unknown users whereas Ripple is built on a network of nodes which are mostly financial service providers and banks.
In fact, a number of major banks across the globe, including Japan Bank Consortium, Bank of America, Bank of Canada, and Standard Chartered, are using the Ripple technology and investing in it too. SEB in Sweden, for instance, started to utilize Ripple’s Blockchain to speed up the corporate payment transactions between Sweden and New York.
Another example of a financial service provider is SBI Remit, a company part of the SoftBank group in Japan. The partnership between the said firm and Ripple back in January 2016 helped improve remittance payments.
SBI Remit Representative Director, Nobuo Ando, stated that the foreign people working in Japan who are sending money back home are constantly in search of a safe, fast, and economical means.
Tracking the transactions is deemed impossible for Bitcoin as it could only see the movement of the digital money being sent.
On the contrary, Ripple has full capability to track and retrieve any information related to the transaction including the account balance. Moreover, the Consensus Ledger of the latter is governed by MIT and Microsoft-supported institutional validators.
To cap off the list, here’s another fact that is highly reassuring – Bill and Melinda Gates’s very own foundation has been equipped with Ripple Technology.