Should you forget Bitcoin and buy XRP (Ripple) instead?

The stars appear to have adapted to cryptocurrency -investors. Nominations after the election of state secretary and Securities and Exchange Commission (SEC) President plus a recent executive order has made it clear to the markets that the US government is switching to a more pro-crrypto attitude.

While humming has progressed Bitcoin To new heights the real winner has been XRP (XRP -23.74%?. Crypto Token’s price has risen by approx. 500% in the past year, most of which have taken place in the last few months. It can be tempting to dump Bitcoin, the biggest and best known crypto, for something more exciting.

So should investors move on from Bitcoin and ride XRP’s Momentum instead?

Here’s what you need to know.

Why is XRP well?

Cryptocurrency prices are ultimately dependent on supply and demand. A coin can become viral and enjoy a temporary increase, but adoption in the real world is the key to driving the stable demand that supports tokenset in the long term. XRP is the token for Ripple Ledger, a blockchain technology used for cross-border transactions.

Currently involving sending money from one country to another an international banking network (Swift) that can take hours (or even days) to verify and transfer the funds. Using Ripple, someone can exchange their currency for XRP, transfer it and exchange it for another currency in seconds. It is a strong use of use with significant value in the real world.

In 2020, Securities and Exchange Commission Ripple Labs, the developer of XRP, sued the XRP tokens and claimed that the company violated securities law. Ripple Labs won a largely favorable decision last year, but the ongoing appeal process threatened with Shroud Ripple Labs and XRP in uncertainty that suppressed the token’s award.

With new SEC leadership and a potential shift to pro-crryptocurrency policies, investors are buying the XRP in anticipation that SEC can try to end its match.

Should investors forget about Bitcoin?

It is tempting to chase the shiny object and XRP has a legitimate long -term potential if it can be integrated deeper into global payments. However, investors should not hurry to give up Bitcoin.

Bitcoin could take significant steps forward during the new US government administration, and President Donald Trump’s recent executive order of digital assets signaled the potential establishment of a federal stock. The order did not explicit Bitcoin, but it remains by far the largest cryptocurrency with a $ 2 trillion trillion market capital, approx. 5 times the size of EthereumThe next largest. It’s hard to imagine a government strategy for digital assets that do not include Bitcoin.

If the United States adopts a strategic reserve that includes Bitcoin, it could be a massive catalyst. It is likely to push other countries to follow and increase institutional accumulation.

Why choose? This may be the better approach.

The great thing about investing is that you don’t have to choose one or the other. The reality is that Bitcoin and XRP serve different purposes so that investors can easily justify owning both in a diversified portfolio.

XRP’s market capital is the third largest among cryptocurrencies, but it’s still only $ 179 billion today, less than 10% of Bitcoin’s. Ripple’s Chief Legal Officer expressed optimism after the original trial that decided that US banks could adopt XRP when the trial clouds ready. Of course, only the time shows if it happens. If that happens, it can strengthen the case for XRP to be included in any potential strategic reserve.

There are still quite a few unknowns and some of these questions can take time to answer. Nevertheless, the development of the government seems to indicate that Cryptocurrencies could see an uptick in adoption for the next several years, giving investors plenty of rationale for buying and keeping cryptos with the real world like these two.