Better buy: Ripple vs Dogecoin

Although there is still a lot of volatility, many cryptocurrencies have established new heights of all time in recent weeks. Ripple (Xrp -0.42%)) Hit a new record of all time in mid-January. And even if it was not technically a new record of all time, Mastiff (DOGE -3.33%)) Also hit a multi -year summit last month.

Many experts believe that there is even more the upcoming increase for the two cryptocurrencies, but which is the best bet today? You might be surprised by the answer.

Two very different cryptocurrencies

Ripple and Dogecoin are popular cryptocurrencies, but their underlying reasons for the existing could not be distant. One is undoubtedly a utility token, while the other is clearly a coin. Their names alone should tell you which ones, but I will quickly plunge into the details of each token.

Ripple made his debut in 2004, long before Bitcoin was even invented. Its original name was Ripplepay, and the underlying technology was designed to facilitate money transfers. Blockchain technologies have entered the image almost a decade later.

In 2012, the company was sold to a group of investors. It was at this point that society turned into an Empire crypto, launching its XRP token in order to revolutionize money transfers between the big banks. Now known as Ripple Labs, the group still manages the XRP part and the Ripplenet payment system.

According to the Corporate Finance Institute, “the network has been designed to be faster, cheaper and more scalable than Bitcoin, and XRP is supposed to facilitate financial transactions as a bridge currency.” The final result, according to Ripple’s value proposal, is that the main financial transfers, in particular cross -border transfers, become more effective for each party involved in relation to the current system. This digital part has a job to do.

Dogecoin could not have a more different story of origin. He was launched in 2013 mainly as a joke, borrowing his name from a dog Shiba Inu made famous via internet memes. According to the founders, they “thought that cryptocurrency was taken far too seriously and was not very fun”. Thus, Dogecoin was born.

While Ripple was designed for a specific use case, Dogecoin was designed with pleasure in mind. Therefore, Dogecoin uses a proof of work Consensus mechanism that involves mining, perhaps using your computer graphics card. The price of parts tends to fluctuate according to viral publications in various social networks. And the adorable Shiba Inu mascot remains a vital piece of the Dogecoin puzzle.

Meanwhile, Ripple operates a serious payment network with a large centralized book – a more pleasant approach to the taste for large financial institutions.

When choosing the token in which to invest, their use cases and the reasons for existence should be in the lead.

Ripple is better than Dogecoin for this reason

There is a reason why “invest” and “speculate” are different verbs. Investment focuses on the construction of long -term wealth based on fundamental principles and intrinsic value. Speculation is generally a higher risk, betting on price movements with regard to the real underlying value. It’s like comparing commercial investments to games of chance.

In this context, Ripple is more an investment than Dogecoin, since it has a planned use case which can be quantified, measured and predicted. That the world will continue to buy Dogecoin as a joke in a year, it is the assumption of anyone. The same corner remains popular, but could exceed its long -term welcome.

This does not mean you should not buy Dogecoin. It is a fun asset with a strange and interesting story. If you get kicks to buy a few tokens, try it. Just know that from an investment point of view, Ripple and its more developed commercial model have more sense in a head-to-head match.