After the U.S. presidential election in November last year, Donald Trump introduced a series of crypto-friendly policies. The market immediately reacted positively: the total market capitalization of the entire crypto market has steadily increased and recently reached a new record high of $4.2 trillion. Among this, Bitcoin (BTC) accounts for up to $2.3 trillion, while XRP (Ripple) – though much smaller – has attracted attention with a price increase of over 500% since November. Both Bitcoin and XRP have their own advantages. But looking at the rest of this year (and beyond), which is the more compelling choice?

The Case of XRP

Ripple is the company behind Ripple Payments, a payment network that uses blockchain technology to process cross-border transactions in seconds instead of days. As a result, banks can trade directly with each other, bypassing intermediaries and significantly saving costs.

Ripple created the XRP token to standardize transactions on this network. Instead of converting through multiple currencies, banks can use XRP for payments, thus eliminating costly foreign exchange fees. The fee for a transaction is only about 0.00001 XRP, nearly zero.

However, XRP is not a decentralized cryptocurrency like Bitcoin. It is issued and controlled by Ripple, which led the SEC (U.S. Securities and Exchange Commission) to sue Ripple in 2020, alleging that XRP is a security. The lawsuit has lasted for 5 years, causing many disadvantages for Ripple and the XRP community.

Everything changed after Trump won the election and appointed Paul Atkins, a crypto supporter, as the Chairman of the SEC. Under new leadership, the SEC withdrew from many lawsuits related to cryptocurrency, including the one with Ripple. As of August 7, 2024, the SEC officially ended the dispute with Ripple, paving the way for XRP to grow without legal burdens.

The Case of Bitcoin

Unlike XRP, Bitcoin does not have a company behind it. It is designed to be a decentralized asset, free from government or organizational control. The total supply of Bitcoin is capped at 21 million coins, expected to be fully mined by 2140. This scarcity is what leads many investors to consider Bitcoin a form of "digital gold."

Bitcoin also receives stronger legal recognition compared to XRP. The SEC has approved several Bitcoin spot ETFs, making it easier for institutional investors and financial advisors to access this asset in a heavily regulated environment. This further strengthens Bitcoin's position as a safe store of value.

Many forecasts suggest that Bitcoin could rise significantly in the long term.

  • Cathie Wood (Ark Invest): Bitcoin could reach $2.4 million by 2030.

  • Michael Saylor (MicroStrategy): Bitcoin could reach$21 millionby 2046.
    Although these figures may seem overly optimistic, a more reasonable scenario is that Bitcoin will approach the market capitalization ofall the gold in the world ($22.8 trillion). If this happens, each Bitcoin could reach approximately$1,085,000, an increase of more than800%compared to the current level.

Conclusion

XRP clearly has practical value in the global payment system, but the issue is: banks are not required to use XRP to take advantage of Ripple Payments – they can still transact using fiat currency. This means that Ripple's development does not necessarily translate to a sustainable increase in XRP's price.

In contrast, Bitcoin, with its decentralization, limited supply, and increasing recognition, provides longer-term confidence for investors. If considered a store of value like gold, the growth potential of Bitcoin remains significant in the coming years. Therefore, looking at the rest of this year and in the long term, Bitcoin may be a better investment compared to XRP.