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Bitcoin vs. Ripple Explainer

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Bitcoin Ripple

Whether you’re new to the world of blockchain technology or are simply looking to sharpen your sensibilities when it comes to distinguishing the market’s key players, there is always more to learn. Cryptocurrency trading is fuelled by hype and that means that new players are always popping up and disappearing. Bitcoin remains the constant staple in this everchanging landscape and also serves as a useful benchmark against which to understand and evaluate other actors. Find out more about 1 BTC to USD here. If you’ve got things like a graph of bitcoin price history saved to your bookmarks, there’s a good chance you’ve also encountered the name Ripple. If you are interested to learn how it stacks up against its forebearer, read on to discover the similarities and differences between Bitcoin and Ripple. 

The risk remains the same

One thing to clear up right off the bat is that all cryptocurrencies exist in a volatile and very speculative market. Although a lack of regulations is part of the draw, it also means that anything goes and there are really no guaranteed bets. Ripple and Bitcoin are both parts of this ecosystem, so keep in mind that if you’re thinking about investing in either, or any blockchain cryptocurrency for that matter, you should go in ready to potentially lose your complete initial investment. When it comes to investing in any cryptocurrency, you’d be best to hedge your bets and only put forth capital that you would be comfortable without. 

Ripple 101

When thinking about Bitcoin, most people understand it as a digital currency that can be used to purchase a variety of goods and services in the online marketplace. Therefore, the number one thing to understand about Ripple is that it serves a slightly different function. Simply put, Ripple is a system for currency exchange, payment settling, and remittance that can be used by payment networks and banks to provide higher transparency and security. Unlike Bitcoin, Ripple was never designed to be an independent method of payment. One of the biggest advantages of Ripple is that it allows for a fairly seamless transfer of assets that plays out in near real-time, providing more peace of mind for those involved in the transaction. 

Ripple doesn’t use blockchain

Another important distinction to make between Bitcoin and Ripple is the fact that Ripple doesn’t use blockchain to fulfill its function. Unlike Bitcoin, Ripple works through a network of validating servers and crypto tokens. The tokens are often referred to as Ripples but are formally called XRP. These are the actual cryptocurrency being exchanged in Ripple, which uses a distributed consensus ledger. 

A closer look at XRP tokens

In terms of how Ripple replaces standard settlement systems, it is useful to think of XRP tokens as a replacement for US dollars, which are frequently used as a middle ground currency for exchanging others. Due to established standards of exchange and the regulations in place, using US dollars not only takes considerably more time but is also accompanied by the dreaded currency exchange fees. 

On top of costing more than most are happy to pay, standard international transfers can sometimes take three days or more to process. Enter the XRP token. Completely supplanting the process, the value of the assets being exchanged are first converted into XPR (as opposed to USD), allowing for fees to be wiped away and the waiting time to be reduced from days to mere seconds. Returning to the Bitcoin comparison, it is worth noting that Bitcoin transactions tend to take around 10 minutes, and although this is certainly less than three days, it is still significantly more than the five-second transaction rate Ripple can achieve. Even by considering to use automated crypto robots such as Quantum AI, BitAlpha AI, BitIndex AI, Bitcoin Prime and Bitcoin Billionaire, you would be able to fully automate your trading activities.

Different origin stories 

Unlike the more mysterious emergence of Bitcoin, which is currently maintained by a team of dedicated developers and not tied to any government, bank, or third part, Ripple is more mainstream. Founded in 2012, Ripple was developed by an actual company and had set goals outlined from the get-go. This more standard entry onto the world stage has likely been one aspect that has helped make Ripple more palatable for major financial institutions. Santander and Fidor Bank are just a few of the big names who have said that they are in the process of testing or even implementing various applications of the Ripple Network payment apparatus. 

No mining for Ripple

Another difference that might be hard for Bitcoin enthusiasts to wrap their heads around is that Ripple was not, in fact, designed to be mined at all. An important part of the Bitcoin ecosystem, miners of the cryptocurrency will typically be rewarded for their efforts in the form of a new Bitcoin. Ripple, meanwhile, is pre-mined. There are currently around 38 billion XPR tokens populating the market. The remainder resides in Ripple labs and will be released onto the market in incremental amounts. For further information on Bitcoin payments, check out dchained.

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Bitcoin

Bitcoin Price Jumps to Highest Level in 9 Months on the Back of the UBS Merger Deal

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Bitcoin price has been hovering above its highest level since June 2022 over the past few hours. The largest cryptocurrency by market cap has jumped by 28.30% in the past week, while its year-to-date price inches higher to 70.63%. Bitcoin’s total market cap has increased by 4.77% over the last 24 hours to $547.7 billion, while the total volume of the coin traded rose by 50%.

BTC Skyrockets

Bitcoin price was rallying on Monday as most altcoins slumped, led by the largest altcoin by market cap, Ethereum. The global crypto market cap has increased 2.49% over the last day to $1.18 trillion, while the total crypto market volume jumped 34.88%. Bitcoin’s dominance inched 0.98% over the past 24 hours to 46.34%, its highest level since June 2022.

The recent global banking crisis in which three major banks in the US were closed within days has pushed the BTC price higher. Silvergate Capital, Signature Bank, and Silicon Valley Bank recently disclosed operational difficulties, prompting regulators to shut them down.

Switzerland’s largest banking institution, UBS, announced on Sunday that it had entered a merger deal with its embattled rival Credit Suisse. UBS announced that it would buy its rival for $3.25 billion, with Swiss regulators playing a key role in the ideal. According to the Swiss National Bank, the merger will secure financial stability and protect the Swiss economy.

Bitcoin reacted positively to the news, cruising…

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Bitcoin

Bitcoin Price Extends Rally as Latest US CPI Reading Falls in Line With Market Expectations

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Bitcoin price has been on a 4-day consecutive rally, jumping more than 29% since Friday when Silicon Valley Bank collapsed. Despite the tough year so far, BTC has been among the best-performing cryptocurrencies, jumping 57% in the year to date. At the time of writing, Bitcoin was trading 7% higher at $25,820.

BTC is Outperforming

Bitcoin price has been rallying in its recent trading sessions despite the collapse of the Silicon Valley Bank last week on Friday. The coin’s recent rally has been largely boosted by the current bullish momentum in the markets. Bitcoin’s coin market cap has increased by more than 7% in the past 24 hours, while the total volume of the coin traded slipped 8%.

Data by Coinmarketcap shows that the global crypto market cap has increased further by 5.19% to $1.13 trillion, while the total crypto market volume has decreased by 15.96% over the same period. Bitcoin’s dominance has increased by 0.83% over the last day to 44.24%.

The rally in the crypto market has been intricately linked to the recent US Consumer Price Index (CPI) data. The Bureau of Labor Statistics (BLS) reported a 0.4% increase in inflation in February from January, matching consensus estimates by analysts.

The CPI reading declined to 6% year on year, down from 6.4% in January, in line with market expectations. The core CPI, which excludes volatile food and energy prices, came in at…

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Bitcoin Price Slips Below $20,000 Amid Silvergate’s Liquidation and Macroeconomic Concerns

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Bitcoin price was trading in the red on Friday, breaking out of the $22,000 level and slipping below the crucial level of $20,000. The largest cryptocurrency in the world fell to a two-month low on Thursday amid Silveragte’s liquidation and macroeconomic factors. BTC price has slipped more than 15% in the past week as markets remain jittery.

Reasons Behind BTC’s Crash

Just like most cryptocurrencies, Bitcoin price has been on a steep downward trajectory for the past few days as Silvergate’s crisis continues to weigh on the crypto market. Bitcoin’s total market cap has crashed by more than 8% over the past 24 hours, while the total volume of the digital asset traded soared to 73%. BTC’s dominance has also decreased by nearly 1% over the last day.

The overall crypto market was in the red on Friday as the global crypto market cap slipped further by 6% to $928 billion. On the other hand, the total crypto market volume rose 60.65% over the last day. Earlier on Wednesday, Silvergate Capital announced the winding down of its operations and liquidation of its bank. The contagion fears from the Silvergate crisis have been keeping investors on their toes as the crypto markets react to the same.

The last few days have been disappointing for the crypto market as fears of higher interest rates contribute to the sell-off by traders and investors. During his recent congressional appearance on Tuesday,…

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