XRP vs BTC Economy Insights

As new transactions come in, validators update their ledgers every three to five seconds, making sure they match the other ledgers. If there is a discrepancy, they stop to find out what went wrong. This allows Ripple to validate transactions safely and efficiently, giving it an advantage over other cryptocurrencies such as Bitcoin.
2021-09-14, by Ted Jackman, Independent Financial Adviser

#XRP || #BTC || #USD ||

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How to mine XRP

"Mining" is the distributed verification system used by most blockchain-based cryptocurrencies. It facilitates both transactions and the mechanism by which new coins are introduced into a cryptocurrency system, usually as a reward for verifiers for their work supporting the network. For example, Bitcoin has a total supply limit of 21 million tokens that are constantly being released as more and more transactions are verified, like shown here: https://nsbroker.com/xbt-usd.

XRP, on the other hand, was "pre-mined," meaning that the XRP ledger created 100 billion tokens, which are then regularly released to the public. Ripple owns about 6% of this as an incentive to help the cryptocurrency grow and prosper over time. About 48% more are kept in reserve so that they can be regularly sold on the market.

This has understandably raised concerns that many XRPs may be released at once, diluting the value of other XRPs already in circulation, as part of what gives each coin its value is its relative scarcity.

How to Use Ripple and XRP

You can use XRP like any other digital currency, either for transactions or as a potential investment. You can also use the Ripple network to conduct other types of transactions, such as B. Currency exchange to process.

For example, if you want to exchange USD for euros, you can first exchange your USD for XRP on the Ripple network and then use that to buy euros instead of processing the currency exchange directly through a bank or exchange office. This can be a much faster and cheaper approach compared to paying the high fees banks and money transfer companies can charge.

Should You Buy XRP?

While some find XRP's vision and benefits compelling, White worries the SEC's lawsuit could create problems for those who wish to buy it. “You position yourself as a liquidation layer for regulated companies, but you are also in a dispute with the SEC. None of the customers you'd like to get on board can really start using XRP until Ripple has resolved their legal issues, ”he says.

With all this uncertainty, Enneking warns that XRP could be a game of chance, not for the faint of heart. Although it has bounced back more than once since then, "the SEC's announcement caused the price of XRP to fall," he notes, which makes this crypto an especially volatile investment until things are cleared with the SEC.

However, if you believe that Ripple will emerge victorious against the SEC and continue to prevail as a payment system, then XRP could be worth buying. Just make sure you can afford to lose money.

Boss Heights

Boss Heights contributor to abundance.org.uk
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