XRP, BTC and XBT - what is the difference
In general, XRP is better than Bitcoin for shorter processing times and lower transaction costs. To understand both with real comparisons, here are some analogies.
Ripple was never developed as a currency or a payment method. However, there is a small list of merchants that accept XRP token payments online. For example, you can buy honey, hot sauces, and jewelry.
How to mine XRP
Mining is a distributed verification system used by most blockchain-based cryptocurrencies. It facilitates both transactions and the mechanism by which new coins are fed into the cryptocurrency system, usually as a reward to auditors for their work in maintaining the network. For example, the total supply limit for Bitcoin is 21 million tokens, which are continuously issued as more transactions are verified, as shown here: https://nsbroker.com/desktop-platform.
XRP, on the other hand, has been "pre-mined" meaning that 100 billion tokens have been created in the XRP ledger, which are then published regularly. Ripple owns around 6% of it as an incentive to help the cryptocurrency grow and prosper over time. An additional 48% is kept in reserve so that they can be regularly sold in the market.
Naturally, this raised concerns that many XRPs could be issued simultaneously, reducing the value of other XRPs already in circulation, as part of the value of each coin is its relative rarity.
How to use Ripple and XRP
You can use XRP like any other digital currency, whether for trading or as a potential investment. You can also use the Ripple network to perform other types of transactions such as B. Currency exchange for processing.
For example, if you want to exchange dollars for euros, you can first exchange your dollars for XRP on the Ripple network and then use them to buy euros instead of processing the change directly through a bank or money changer. . This can be a much faster and cheaper approach compared to the high fees that banks and money transfer companies can charge.
Should I buy XRP?
While some find the vision and benefits of XRP compelling, White is concerned that the SEC lawsuit could create problems for those looking to buy it. “You position yourself as the level of liquidation of regulated companies, but you are also in litigation with the SEC. None of the customers you want to attract will be able to start using XRP until Ripple resolves their legal issues, ”he says.
With all of this uncertainty, Enneking warns that XRP may not be a bet for the faint of heart. Although it has rebounded more than once since then, "the SEC's announcement lowered the price of XRP," he notes, making cryptocurrency a particularly volatile investment until that time. that the SEC has given its approval.
However, if you think Ripple will beat the SEC and continue to dominate the payments system, then XRP is worth buying. Just make sure you can afford to lose the money.