Well, there are many differences between Ripple and Bitcoin. Here are the most important ones:
- Bitcoin is a decentralized system that is not owned by any government, bank or third party despite being initiated by someone. On the other hand, Ripple is owned by the company with the same name. In theory, they can simply end it if they want.
- Bitcoins are dispersed worldwide. The biggest Bitcoin wallet holds almost 1% of all Bitcoins – this is an exchange. Check how Bitcoin is distributed:
This is very different from Ripple, where Ripple owns 60% of XRP tokens.
- Bitcoin was created as a means of storing value, while XRP was created to digitalize transactions between banks within the system. Check the difference between traditional bank transactions, transactions involving BTC, and transactions involving XRP:
- Bitcoin transaction confirmations take 10 minutes on average, while XRP transaction confirmations take 5 seconds.
- Bitcoin miners are rewarded with new Bitcoin, while Ripple doesn’t need to be mined. All the XRP tokens as transaction fees are burned, which is a big difference from Bitcoin.
- XRP token is under $1, which is attractive for speculators. Bitcoin price is over $5600 as of today, which makes it expensive for average investors. However, it doesn’t stop you from investing $100 in Bitcoin.
- 100 Billion XRP have been initially pre-mined. From this huge amount, only 38 billion are available in the market, as the rest XRP are in Ripple labs. As for Bitcoin, it is not pre-mined – however, the maximum coin supply is 21 million. Currently, there are 16 million.
There are more points to consider, but these are the key differences.