- Bitspark experts believe that Bitcoin beats XRP as a currency for cross-border transactions.
- XRP is considered less liquid against multiple fiat curencies.
While Ripple promotes its cryptocurrency as a perfect solution for fast and cost-effective cross-border payments, some experts believe that Bitcoin is a much better option.
Thus, the head of Bitspark George Harrap says that Bitcoin is more practical and usable as it is more popular and accepted by a more significant number of companies. Meanwhile, XRP is less liquid when it comes to the exchange in fiat currencies, which make it a costly and less attractive payment option for users.
Bitspark researches published a rank of cryptocurrencies evaluated by their suitability for international payments. Thus, Bitcoin and Ethereum are ranked as coins with medium viability as a means of payment. Meanwhile, Stellar (XLM) got a higher rating due to the integrated decentralized exchange and the convenient mechanism for creating stablecoins.
xRapid and xCurrent solutions developed by Ripple got low grades due to their inferior liquidity. The company believes that Ripple failed to create liquid markets in fiat currencies, which is a necessary prerequisite for successful development. According to Harrap, xRapid is useful when you deal with a single currency, but it becomes a pain in the neck when you need to transfer US Dollars to a less popular currency like Kenyan Shillings. It would require routing the payment through multiple nodes and currencies.
"The number of Ripple gateways that exist hasn't changed in four years and basically consists of bitcoin exchanges for people to speculate on the price of XRP for BTC," Harrap adds. "None of these companies are remittance companies, nor are they using XRP for its intended purpose," he explained.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.