In the world of digital currencies, a select few names consistently steal the spotlight. Leading this pack are Bitcoin and XRP (XRP)—two of the most prominent and widely recognized cryptocurrencies.
By the close of trading on September 12, XRP had climbed 48% year to date—precisely twice the return of Bitcoin. With such impressive results, many investors are left questioning whether XRP could soon take on a major leadership role in the crypto space.
Why is Bitcoin special?
Bitcoin's main draw lies in its limited availability. With a maximum supply of 21 million coins, it is intentionally constructed to be deflationary—setting it apart from traditional currencies, which can be printed indefinitely. This key difference has prompted many financial experts to call Bitcoin "digital gold," a label that emphasizes both its scarcity and the computational effort needed to create new units.
Bitcoin Price data from YCharts
Another reason for Bitcoin's increasing relevance is its adoption as a corporate treasury asset. Firms like Strategy (formerly known as MicroStrategy) and GameStop have integrated Bitcoin into their financial reserves as part of broader cash management strategies.
On a bigger stage, some countries are exploring the idea of establishing national reserves of Bitcoin—essentially mirroring corporate treasury moves but on a more complex, sovereign level.
These trends underscore how widespread Bitcoin adoption has become—as it’s now seen not just as a store of value, but also as a safeguard against inflation and a means to reduce systemic financial threats.
XRP brings practical benefits to payments
XRP has established a unique position in the cryptocurrency world: facilitating international payments.
At present, countless companies rely on the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to process cross-border payments. However, many see SWIFT's system as both sluggish and costly, with organizations often facing high foreign exchange charges and settlement periods that can stretch over several days.
XRP tackles these challenges by offering virtually instant transactions and minimal fees. Considering the global cross-border payment market reaches trillions of dollars every year, XRP is positioned to make a substantial impact—delivering real, disruptive utility.
Yet, the critical point lies in XRP's actual use: all transactions with XRP happen on the Ripple network.
Even though Ripple has built partnerships with banks and other financial institutions, adopting its platform doesn't automatically mean that XRP itself will see widespread use. To put it simply, Ripple's growth as a payment system does not necessarily equate to increased demand for the XRP token.
Image credit: Getty Images.
Is XRP a potential successor to Bitcoin?
This comparison makes it clear that Bitcoin and XRP each serve very different functions within the digital asset landscape.
Bitcoin is regarded as a macro-level asset—a shield against inflation, a reserve holding, and even a strategic tool in international economic discussions. Meanwhile, XRP is focused on a narrower function: streamlining and reducing the costs of cross-border payments.
These differences are essential for investors to recognize. Bitcoin’s value is primarily rooted in its finite supply and its distinct position as a decentralized store of value that operates across platforms. XRP, by contrast, offers value by boosting efficiency in a sector ripe for disruption—but requires no mandatory usage of its token.
While XRP presents clear usefulness and the possibility of capturing a significant portion of the vast payments industry, its investment characteristics are fundamentally different from those of Bitcoin. Bitcoin is increasingly being accepted as an alternative asset, whereas XRP’s prospects are tied to its specific application and demand within the payments sector.
For these reasons, I do not believe XRP will become the next Bitcoin-like investment within the cryptocurrency market.
