XRP (CRYPTO: XRP) is one of the most popular cryptocurrencies in the world. Formerly known as Ripple, it remains the token of the Ripple payment system. XRP is best known for its record-breaking run in 2017. That year, when Bitcoin’s (CRYPTO: BTC) 1,000% rise made headlines, XRP did far better with an earth-shattering 36,000% gain. Since then, things have cooled off a bit, but XRP remains one of the world’s most popular cryptocurrencies, in eighth place by market cap.

When you look at a smaller cryptocurrency like XRP, it’s tempting to wonder whether it could be “the next Bitcoin.” With its smaller market cap, it has the potential to deliver better returns than Bitcoin. Additionally, it offers some appealing technical features. In this article, I will explore the virtues of XRP to attempt to determine whether it could be “the next Bitcoin.”

Appealing features

Like many cryptocurrencies that were invented after Bitcoin, XRP has some advantages over its older cousin. These include

  • Faster transaction times;
  • Lower fees; and
  • Less energy consumption.

The final item on this list is one you don’t see mentioned very often. It’s quite common for smaller Bitcoin competitors to be faster and cheaper, but you don’t often see cryptos that tout their environmentally friendly nature as a virtue. The XRP consensus mechanism works by an instantaneous poll, which works faster and more cheaply than Bitcoin’s proof-of-work system. The result is less energy consumption.

Bitcoin has some advantages, too

Despite the advantages that XRP has over Bitcoin, the latter has some advantages as well:

  • “Brand” recognition
  • Widespread acceptance by vendors
  • Legal tender status in El Salvador and (soon) Arizona

These are big advantages. They mean that you can use Bitcoin to buy and sell actual goods in far more places than you can with XRP.

Bitcoin has another advantage as well: the ability to be tax-sheltered through ETFs.

Through Purpose Bitcoin ETF (TSX: BTCC.B), you can protect your Bitcoin from taxation. BTCC.B, being stock market traded, can be held in a TFSA. That means you pay no taxes on capital gains you earn by trading it. In exchange for this privilege, you have to pay BTCC.B’s fund managers 1% per year. That’s a sizable fee, but it may be less than the capital gains tax on crypto holdings.

With XRP, there are fewer options for tax sheltering. Ripple ETFs do exist, but they aren’t widely available in Canada. Van Eck’s funds, for example, do not appear as tradable in my brokerage account. So, while the TFSA tax-sheltering strategy is technically available for XRP, it’s not going to be the easiest thing to pull off. This gives Bitcoin the edge over XRP on taxes.

Foolish takeaway

Bitcoin has come a long way since it was first invented in 2009. Rising all the way to a near-trillion-dollar market cap, it has become a major asset. That has been a positive for long-term holders. Now, though, with BTC already being massive, the easy gains might be over. Perhaps, then, it’s worth adding smaller altcoins like XRP to your portfolio.

WHY XRP WILL REPLACE BITCOIN Bitcoin has always been the king of cryptocurrency but XRP is in great competition with it. A question arises here will XRP replace bitcoin in this race? Let’s find out. Hey Guys! Welcome back to crypto millionaires! A channel where we give information to you about investing in crypto! Please like and subscribe if you’re new here to get everything you need to know about cryptocurrencies. At the end of this video, you will know which cryptocurrency is better and will XRP be replacing Bitcoin. So, without any further delay, let’s start the video! Guys, while is a digital currency intended as a means of payment for goods and services, Ripple is a payment settling, currency exchange, and remittance system intended for banks and payment networks. The idea is to provide a system for direct transfer of assets (e.g. money, gold, etc.) that settles in almost real-time and is a cheaper, more transparent, and secure alternative to transfer systems used by banks today, XRP VS BITCOIN Guys you must have heard about two of the most popular cryptocurrencies, Bitcoin and Ripple, but you’re not sure that what is the difference between Ripple XRP and Bitcoin? Or maybe you know what they do, but you’re not sure how the technology of these two cryptocurrencies compares? Either way, hold on tight, as I’m about to teach you everything you need to know! Before discussing the main topic about XRP emerging as the new bitcoin we should know the basics of these two cryptocurrencies. That is why I am going to talk about these two things their purpose, their transaction speeds, their mining process, and the total coin supply of both projects. By the end of this video, you will have all the information you need to decide which cryptocurrency is better. So, let’s dive right into this discussion! So, guys in their simplest form, both Bitcoin and Ripple are cryptocurrencies that are supported by blockchain technology, which allows people from all over the world to use these blockchains to send and receive funds. Both projects have their native coin, which can be purchased online at a third-party exchange. XRP is an asset or Ripple, we are going to talk about the xrp news today and the xrp price prediction and analytics of 2021, with Crypto Millionaires we talk about the live analytics of ripple (XRP) and we will keep you up to date for every XRP PUMP and the Xrp court case that’s going on right now! What is XRP? XRP is a token used for representing the transfer of value across the Ripple Network. Different from Bitcoin, where new coins are created (up the capped level) as rewards for participants offering computing power to maintain the blockchain network, Ripple created 100 billion XRP coins at its inception. What makes XRP different? The important difference between the example above and Ripple is that with Ripple, trust relationships are automated on a blockchain that tracks all accounts, balances, and IOUs. This blockchain is the Ripple Ledger. Every participant in the network who can send transactions and/or holds XRP is defined as an account.