Better purchase in 2025: XRP (Ripple) or Bitcoin?

Donald Trump ran a pro-crrypto campaign last year. He threw his support behind radical ideas such as establishing a strategic Bitcoin (BTC -9.15%? Reserves within the US government and he promised to make America the crypto capital of the world.

After he won on November 5, most major cryptocurrencies rose in value. XRP (XRP -23.32%? has increased by 511% since this date and Bitcoin has increased by 52%.

With Trump now in office, his administration may work on his pro-crrypto agenda, which can create additional value for XRP and Bitcoin. But which one is the better purchase in 2025?

The case for XRP: A friendlier securities and exchange commission

In 2020, the US Securities and Exchange Commission (SEC) sued a company called Ripple for the way it distributed its cryptocurrency, XRP. Ripple created a unique payment network that allows global banks to run transactions with each other directly and instantly, even if they use different infrastructures.

Ripple launched XRP in 2012 to standardize transactions within ripple payments. For example, a Japanese bank can send XRP to a German bank instead of sending the yen to eliminate currency exchange fees and other transaction costs.

XRP has a total supply of 100 billion tokens. About 57.6 billion is in circulation, while the other 42.4 billion is owned by Ripple, who gradually releases some every month to meet institutional demand. That’s the basis of SEC’s lawsuit: It claims that XRP must be a registered financial security (as a stock or bond) because it was issued by a company that would introduce a very strictly set of rules for Ripple’s business.

A truly decentralized cryptocurrency like Bitcoin does not have that problem because it has a uncovered supply and has not been issued or controlled by any business. Therefore, it does not fit the description of financial security.

The trial was partially resolved in August 2024. A judge gave up that XRP may have been only a security under specific circumstances such as when issued to institutions, but it may not be a security when used in transactions or traded on crypto exchanges.

Ripple was hit with a fine of $ 125 million, and investors saw the result as a win. However, SEC appealed the decision that could withdraw the company directly to court.

That’s why investors see Trump’s election gain as so instrumental. He nominated pro-crrypto businessman Paul Atkins to run SEC (pending Senate’s approval). Since he is currently co-chair of the Token Alliance, which is a Crypto Advocacy organization, he is a clear supporter of the industry.

Ripple’s head of legal officer, Stuart Alderoty, said he is carefully optimistic that SEC will voluntarily withdraw his case in 2025, when the new chairman is officially in the job (no date is set for his confirmation hearing). It can be a main catalyst for XRP.

Image source: Getty Images.

The case for Bitcoin: A reliable value of value

Bitcoin’s market value of $ 2.1 trillion makes it the world’s largest cryptocurrency. Thanks to its decentralized structure, uncovered supply and a safe record system (blockchain), a growing number of investors consider it a good store with value that looks like a digital version of gold. Therefore, it continues to march to new heights.

SEC approved dozens of Bitcoin Exchange-Traded Funds (ETFS) last year, which allows investors to own cryptocurrency in a safe, regulated way. It also opened the door to a new pool of buyers such as financial advisers and institutional investors, and demand has been significant so far, when Bitcoin ETFs now have over $ 120 billion in assets.

And there could soon be another major buyer of Bitcoin: the US government. Last year, Senator Cynthia introduced Lummis, a Wyoming Republican, a bill that would have the Treasury Department to create a program to buy 200,000 Bitcoins a year for five years, creating a 1 million storage (about 5% of it Total tender).

The bill did not have enough support, but as I mentioned, President Trump is to establish a Bitcoin reserve, so maybe the proposal will soon be revised.

Cathie Wood’s Ark Investment Management believes that many governments and businesses will keep Bitcoin on their balance eventually to uncover against financial headwinds as inflation. In fact, ARK LISTER LISTES EIGHTS TOTAL FACTORS that can send Bitcoin’s price as high as $ 1.48 million by 2030, which represents 1,350% upwards from which it acts from this writing.

Being widely accepted as a digital version of gold is another of the eight factors, and perhaps the most exciting. The total value of all floor reserves above the ground is currently at $ 18.6 trillion. Bitcoin’s market value would have to grow by 830% to match it, translation into a price-per-coin of about $ 939,000. Therefore, one factor would bring it alone within reach of the sheet’s target.

The judgment

Most cryptocurrencies lack a real feature. Despite its popularity, even Bitcoin is a speculative asset because investors buy it in the hope that someone will pay a higher price for it in the future. It does not generate earnings, so it is worth only what an investor is willing to pay.

XRP Do Use a clear use in Ripple Payments Network, which should theoretically create value for the token. However, banks do not need to use XRP to use ripple payments – they can trade with Fiat currency and still take advantage of immediate settlements. As a bitcoin, XRP is therefore very much a speculative asset.

There is an important difference between the two cryptocurrencies. Bitcoin continues to climb to new heights, while the XRP still hasn’t surpassed its record level of $ 3.40 from 2018. In fact, it fell by more than 90% shortly after happening again.

The existence of ETFs and the broad ownership of both retail and institutional investors can isolate Bitcoin from suffering a similar fate. If the US government becomes a buyer, it can also legitimize Cryptocurrency’s status as a value of value and encourage other countries to create similar initiatives.

As a result, Bitcoin is probably a better purchase than XRP in 2025 and also in the long term.