The key difference between Bitcoin and Ripple
Before you decide to switch BTC to XRP, mind the following facts.
Initially launched in 2008, Bitcoin has grown in the popularity over the last years and in price accordingly. The idea of a decentralized payment system which allows to make instant transactions is indeed revolutionary, and many other projects now use it in the background trying to add new features that could help them offer a better product to the market. One of such projects is Ripple.
It was initially designed for banks in order to increase the international transaction speed and decrease the fees in comparison to WesternUnion and other centralized companies. The main users of the system are banks and financial companies. The biggest part of coins still belongs to a single coin issuer that can add more XRP coins to the network at any time and thus instantly decrease XRP price. So think twice whether you’ve decided to exchange Bitcoin for Ripple or vice versa XRP to BTC.
What is Bitcoin mining algorithm?
Based on the Proof-of-Work mining algorithm, Bitcoin mining technology implies spending electricity on finding the new blocks when you have access to the previous ones. In order to find these blocks, the special mining equipment is used for solving computational problems. Every new block bases on the previous one and thus makes up a united chain. The person who discovers a new block gets a reward in Bitcoins.
How is XRP produced?
That Ripple currency, on the contrary, cannot be mined. The Ripple company has pre-mined the whole supply of XRP coins and now partially launches them into the market. Blockchain enthusiasts blame Ripple for its centralization, but they forget that the main purpose behind creating Ripple was to speed up the international bank transactions. Banks just cannot operate with decentralized currencies, they have to be in control of all the funds they work with.
Despite the differences that stand behind these two currencies, you can easily convert Bitcoin to Ripple on an exchange that supports this pair.
Mind the coins’ supply before you decide to trade Bitcoin for Ripple.
The circulating supply of Bitcoin equals to 17,945,087. Its maximum supply equals to 21,000,000.
For XRP, the circulating supply equals to 43,055,012,634, while its maximum supply equals to 100,000,000,000.
If you want to use our BTC to XRP converter, also pay attention to the market capitalization.
For Bitcoin , the current market capitalization equals to $177,747,471,181.00. Ripple’s capitalization equals to $12,562,602,705.00.
Volume of transactions
During the last 24 hours, Bitcoin’s volume of transaction made up $17,228,133,464.34. For Ripple, this index equals to $2,431,224,344.03.
Average transaction speed
Bitcoin has a very low network capacity as it has never been designed for mass usage and it can only handle 7 transactions per second at the maximum. As a Ripple was initially designed to speed up international transactions for banks, its capacity is much higher and as it allows to handle around 1500 transactions per second.
When you convert BTC to XRP, prepare to wait between 5 and 30 minutes for a transaction to be confirmed on the network. For a transaction in the opposite direction the waiting time will be much lower and most likely the transaction will be confirmed in just a few seconds.