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Will XRP overtake Bitcoin to become new king of cryptocurrencies?

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Can XRP take over Bitcoin in the total market capitalization with the massive adoption of XRP by financial institutions all around the world?

XRP is often called as ‘banker’s delight’ and banks love XRP as it has hundreds of partners globally with many of the world’s biggest names in banking. Banks are actually tired of using the SWIFT system which it turns out is not that swift. XRP can seriously put the heat on swift and provide money savings and transparency at every level. Bitcoin with its 10 minute block time and unstable fees can be a bit problematic when it comes to this but bitcoin is a massive improvement over the previous architecture and the banks themselves. Can XRP take over Bitcoin in the total market capitalization with the massive adoption of XRP by financial institutions all around the world? Let us make some comparisons.

No Forks

Another benefit of XRP is no forks. A real company with a real office run by professional people that you can contact if you have a problem. The whole bitcoin forking thing has been a very device issue in the crypto community and has done little to give large businesses any kind of confidence in the crypto economy especially when they are new to the crypto economy.

 

XRP a ‘security’ issue

XRP might be a security and is currently being litigated in the courts but until this is resolved there will be this uncertainty around XRP in the likelihood of seeing things like XRP futures, XRP ETF or major banks stockpiling XRP.

 

Proof of Work

While there have been many criticisms of the Proof of Work network including the massive burn rate of hardware and the huge environmental footprint in terms of energy consumption, we could do a whole host of what about the bitcoin energy use, but the reality is that the XRP ledger uses less energy than bitcoin. The long-term trend of Proof of Work mining and Bitcoin mining overall will at some point have some explaining to do as currently, we do see a lot of projects moving away from the proof of work networks.

 

Banks don’t like bitcoin

The Banks around the world really don’t like bitcoin and sure this is a badge of honor for bitcoin but the theory goes that they will actively work to suppress and hurt bitcoin. With the big Wall Street products coming specifically targetting bitcoin, it appears that the banks want to profit from bitcoin, not to crush bitcoin. The love and hate relationship of banks with bitcoin is currently in a love period. Interestingly both bitcoin and XRP could be put under real pressure by an influx of national cryptocurrencies or even more worrying  for XRP, the banks implementing their own solutions. As of now, banks are loving the solutions that Ripple Labs are putting forward for them to use. It is much easier to implement someone else’s technology rather than build your own technology especially when it comes down to interoperability between hundreds of different international banks. XRP is not unique in this, other payment providers use bitcoin or stellar lumens to do the same thing that is done with XRP. The difference is of course that Ripple’s network and banking partners are huge. But then banks do not actually hold and stockpile XRP, they can actually just quickly move in and out to do transactions. But just because banks don’t need to stockpile XRP doesn’t mean they won’t. Previously, a report was published about South Korean banks which are currently holding around 1% of all cryptocurrency.

 

Daily Transaction Volume

In terms of daily transaction volume, XRP has dropped back to around half a million daily transactions from recent highs of 1.6 million daily transaction which is well ahead of bitcoin’s quarter million daily transactions. But don’t forget that the lightning network is still in its baby phases and so far away from reaching critical mass so we should really not underestimate the possibility of the lightning network to seriously disrupt this narrative around daily transactions in the future.

 

Transactional Fees

On the fees side XRP is consistently way lower than bitcoin with bitcoin having unstable network fees but again lightning network is coming.

 

Circulating Supply

Ripple’s control over the XRP’s supply vs bitcoin’s code based emission is another area of concern for many investors. As much as some people may want one or the other to fail. But it doesn’t seem that any of these are going anywhere unless XRP is deemed to be a security. But if XRP is declared not to be a security then maybe XRP can rise massively.

 

XRP is crypto and banking coming together. For some, it is like a dream come true and for others, it just gives them a headache as the true aim of cryptocurrency was to destroy the banks and not join them. If XRP ever does get mass adoption by banks and manages to have a larger market cap by bitcoin. Would this mean an end for bitcoin? Certainly not. The use case of XRP does not eradicate the use case of bitcoin.

 

What are your thoughts about XRP and its adoption by banks? Tell us in the comments section below.

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5 Comments

5 Comments

  1. Pingback: Will XRP overtake Bitcoin to become new king of cryptocurrencies? - Satoshiuncle

  2. Eric

    December 5, 2018 at 6:15 am

    XRP will definitely without a doubt be deemed a security. I would advise dumping at $1.00 and investing in a non Security coin like Bitcoin, Litecoin, Dash. Don’t get stuck with a bag of bank owned and controlled co8ns that you cannot trade or sell.

    • Danielle

      December 5, 2018 at 4:38 pm

      XRP without a doubt isn’t a security and will never be. It’s a nonsense. I advise investing in XRP and not to invest in Bitecoin, Litecoin etc which don’t have any real use behind them.

  3. Pingback: Will XRP overtake Bitcoin to become new king of cryptocurrencies? – A Bit of News

  4. Theo

    December 7, 2018 at 2:23 am

    This is like comparing apples and cabbages. XRP isn’t even a crypto in the same sense as BTC.

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#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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#Bitcoin

Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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#Bitcoin

China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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