People often get lost in the variety of digital currencies that are available in the market. Cryptocurrencies and Blockchain are a vital part of our modern life. Bitcoin is still the most well-known cryptocurrency. However, among cryptocurrency fans and investors all over the globe, Ripple is increasingly gaining popularity. So, what are the fundamental differences between Ripple and Bitcoin, and what are their pros and cons? Let’s have a look at both of them in greater detail.

The aims of development

With the aim of paying for services and goods, Bitcoin was developed as a digital currency. In turn, Ripple was created for banks and payment networks as a money transfer system, payment settlement and currency exchange. 

To create a system of direct asset transfers in real-time which would be more transparent,  cheaper, and secure than the existing payment methods, such as SWIFT payments, was the main idea of Ripple.

Who are the developers?

A group of enthusiastic developers maintain Bitcoin. It isn’t governed by any bank, government, or a third party, but a decentralized system. It was built by an anonymous person or a group of people called Satoshi Nakamoto.

Ripple, founded in 2012, is developed by an official company with investors and set goals called the Ripple company. The Ripple company had offices in Australia, Luxembourg, and the UK, in the years 2015 – 2016.

what is ripple


Ripple uses an iterative consensus ledger and validating servers network along with XRP cryptocurrency tokens and Bitcoin is a Blockchain-based currency using mining (proof-of-work). By a range of independent servers comparing their transaction records constantly, the Ripple network is managed. Each second, a new ledger of Ripple is created.

Also Check: 

Mining rewards

Ripple is not designed to be mined at all. This is the reason why these two currencies are very different from each other. In the form of new Bitcoin, Miners of Bitcoin usually get a reward. At the amount of 100 bln, XRP tokens have been pre-mined initially, and only 38 bln are available in the market, the remainder is in Ripple labs and can be periodically released. The maximum supply of Bitcoin is just 21 ml and it is not pre-mined at all.

Issuance of coins

All over the globe, Bitcoins are spread out. Ripple owns 60 per cent of XRP tokens. When compared to Bitcoin’s price, Ripple’s price is very small in number. On the Ripple Charts website, the movement and distribution of XRP tokens can be tracked.

Transaction speed

XRP transaction confirmations take 5 seconds while Bitcoin transaction confirmations take 10 minutes on average.

Difference in utilizing

In the capacity of money, Bitcoin is used. Ripple’s goal is to use it for commodities transfers such as oil or gold over the network or for other currencies. While Bitcoin is entailing centralized ones, the Ripple network is a totally decentralized currency exchange. That is, users are intended to exchange XRP for USD; without any intermediaries or third parties, it’s possible to do that within the Ripple network.

So someone can do that within the network without needing a third party if he/she wants to sell their XRP for USD.

Ripple vs. Bitcoin in Practical Applications

By more than 300 financial institutions, including American Express and Santander, the RippleNet network is currently being used. Ripple is more convenient for institutions and their customers across the globe and also helps make money transfers cheaper and faster.

In popularity, Bitcoin continues to rise, seen in an increase in adoption among businesses. Today, bitcoin is accepted as a form of payment for goods and services by several businesses. Also, as an investment that can deliver significant returns, bitcoin has proven itself.


Practical Examples

  • Ripple: Suppose Paul needs to send $2,000 to Sophia, who stays in Argentina. Paul would need to send a transfer through his bank, which would take 1-2 days if it was a scenario without Ripple. Usually at a higher-than-market exchange rate, along with transaction charges, the transaction would involve exchanging US dollars for Argentine pesos. However, Paul could just exchange the $2,000 for XRP tokens with Ripple and send the tokens to Sophia in a matter of seconds at an affordable rate.
  • Bitcoin: Andrea desires to buy a yoga mat online that costs US$50. Andrea transfers 0.0026 bitcoin from her wallet to the vendor’s wallet, instead of paying $50 from her bank account using a debit card.

Conclusion: Bitcoin vs. Ripple, Which is Better?

So the big question is – which is better when it comes to Ripple vs. Bitcoin? Ripple is the clear winner when it comes to transaction speed, transaction fees, and (perceived) “low price”. However, Bitcoin doesn’t require trusting a single company or party to properly develop and maintain the network and is much more decentralized.

Therefore, for those who might want a fast and inexpensive way to move money across borders but not care that much about decentralization, Ripple might be better suited towards banks and other financial institutions (Ripple’s intended audience).

On the other hand, for everyday people who want to regain control of their money from abusive and irresponsible governments and corporations, Bitcoin might work better.

Both might have a promising future in the years to come, in such a scenario. Indeed, two of the oldest cryptocurrencies that still survive to the present day and that might continue moving forward are Bitcoin and Ripple.