The cryptocurrency industry is becoming a tough competition for cryptocurrencies in the market. To start with, the market has not been easy, far from a smooth ride almost since the year 2018 started. Although cryptocurrencies have been facing a common struggle, some seem to have a better chance of survival in the future than others.
Bitcoin has demonstrated its dominance over the market since 2009, – that is indisputable. It has the largest market capitalization of $114,665,680,016 at the time of writing, its price is way ahead of other cryptos as it currently trades at $6,438.54. It is also the first name that comes to mind the moment the name cryptocurrency is mentioned.
Despite Bitcoin’s obvious dominance however, some people in the crypto space believe Altcoins (anything else but Bitcoin) are the future of the industry. There are currently over 1.6 million cryptocurrencies in existence, all of which hope to become the leading cryptocurrency someday.
Several of the cryptocurrencies have never even been heard of by majority of the cryptocurrency community, but the leading Altcoins today seem to be Ethereum, Bitcoin Cash, Ripple (XRP), Monero (XMR), Litecoin, XVG, Dash among others.
There have been several opinions over which of them is best and predictions on which has a brighter future. Among them all, XRP seems to be the most promising first because of its price stunts. It doubled its price within 24 hours at a point. Secondly, it launched its xRapid cross border payment product which is really making waves.
However, the current popularity of XRP may not be an indicator of future performance especially for investors. This article will look at characteristics XMR possesses that may make it out of Ripples league for a long time.
Why is Monero a better choice than Ripple?
- High privacy
Any active member of the crypto community knows that Monero is a top privacy coin, in fact it is the major thing the asset is known for. As authorities are probing more into cryptocurrencies trying to put restrictions and track transactions, many users are likely to switch to Monero whether for good or bad intentions to secure their privacy, which will increase demand and so the price.
On the other hand, Altcoins like Ripple that the developers still have significant control over may start to lose its customers to the likes of Monero in the near future.
Yes, Ripple provides an easy payment platform but most people would rather make their payments private to secure their funds and identity if not for anything else. Besides majority of those buying cryptocurrencies do so as an investment not just as a means of payment.
2. Proof of Work vs Proof of Stake
Monero and Ripple have two very contrasting methods of transaction validation, Proof of Work (PoW) and Proof of Stake (PoS) respectively. While it has been argued that PoS network is more decentralized than PoW network because miners have a great control over the mining process, the latter has been proven as an effective way of verifying the authenticity of transactions.
Proof of Stake which Ripple uses has not been proven and has been seen to encourage dubious activities on the network. For instance on the Bitcoin network, miners have to work hard to solve a mathematical problem to validate a blockchain transaction and get new bitcoins as reward.
Also in the event of a blockchain fork, working on any branch other than the major one does not bring reward. This deters miners from forking the blockchain unlike Proof of Stake in which there is no penalty since you don’t get rewarded for good behavior.
With the prevailing attacks on exchanges including 51% attacks, any reasonable investor will rather go for the security of their funds and transactions.
3. Future price projection
One of the major factors determining the price of any commodity including cryptocurrency is demand and supply. XRP is currently ahead of XMR by market capitalization and that is about all there is to celebrate. XRP has a market cap of 17,712,955,945 at the time of writing while XMR has 1,710,746,950.
The main determinant however is the total available coins. XRP has a total supply of 39,997,600,000 while XMR is at 16,493,300. I may not be completely right but I’m pretty sure the total supply is telling on the prices. XMR currently trades at 103.723 while XRP is at 0.443.
In addition, Monero has a total of just over 18 million that will ever be available while Ripple has 100 Billion XRP created from the start. By the law of supply and demand, XRP cannot even come close to XMR in the near future.
With these points, it is clear that investors would rather go for XMR than XRP because of the current price differences and even future forecasts based on the important metrics listed above. For payments, Ripple is great but for investment, Monero is key.