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Bitcoin vs. XRP: Which Crypto Crumbles Further?
8 Dec
Summary
- Bitcoin and XRP prices dropped due to inflation and yield concerns.
- Bitcoin's limited supply and ETF approvals offer a bullish case.
- Bitcoin's energy use and lack of smart contracts are bearish points.
Both Bitcoin and XRP have experienced price depreciation in the current year, with Bitcoin down 2% and XRP by 8%. These declines occurred as macroeconomic factors such as persistent inflation and elevated Treasury yields dampened the cryptocurrency market. Bitcoin's fundamental value is often tied to its scarcity, with a maximum supply of 21 million tokens and halving events making mining progressively difficult until 2140.
The approval of spot Bitcoin ETFs has attracted significant investor interest, positioning it as a potential inflation hedge. However, critics point to its energy-intensive proof-of-work mechanism, making it less environmentally friendly than proof-of-stake alternatives. Furthermore, Bitcoin's inability to support smart contracts limits its utility for decentralized applications, unlike platforms such as Ethereum.
XRP, while pre-mined and intrinsically linked to Ripple Labs, faces its own set of market pressures. The broader macroeconomic concerns are impacting both major cryptocurrencies, raising questions about their short-term viability and long-term growth potential in the evolving digital asset landscape.
