Differences between Bitcoin, Ethereum and Ripple

There are so many cryptocurrencies out there and they have different features for different users. Bitcoin is by far the largest cryptocurrency by value which was invented in 2009. Bitcoin is the first and most prevalent digital currency in the market. Though, there are over 1000 other digital currencies (known as “altcoins”) which can also be bought and held as an investment. The market cap for Bitcoin is around 30B USD, and it has reached to 350k transactions per day. Ethereum is another cryptocurrency linked project which has involved a lot of publicity because of its extra features and applications. Some of the benefits of cryptocurrencies include decentralization, deregulation, secrecy, increased transaction transparency, and the enabling of cross-border trade. Although the king of cryptocurrency is still bitcoin, there are many pretenders to its throne and one of them in Ripple. Though each of these products have generated a substantial amount of hype in their short lifetimes, people still have vague understanding about the differences among the major players.


While making the comparison between Bitcoin, Ethereum and Ripple, there are four areas to look at. The first and foremost area is scalability which means that how many transactions can be conducted by cryptocurrencies every second. This area place a massive difference among the three cryptocurrencies. Ethereum and Bitcoin are both scalable, Bitcoin achieves around 7 transactions per second, while Ethereum can deliver almost double this with 15 per second. Ripple is capable of delivering 1,500 tractions every second, providing it a huge advantage over Ethereum and Bitcoin. Since the very start, Ripple has accomplished to address the issues concerning speed, costs and scalability and holds a high edge. This has led to the early significance of Ripple and which could play a main part in the development of cryptocurrencies.

Speed of Transactions

There are a lot of factors that should be taken into account when distinguishing one cryptocurrency from another, transaction speed per second certainly comes into play. Eventually, though, what matters the most is, whether blockchain technology has the capability to process transactions with a similar suitability as today's networks. If they don't have the capability to meet or surpass current networks, then blockchain could struggle to get off the ground. Transaction speed is another major consideration while comparing between Bitcoin, Ethereum and Ripple. It is a huge surprise to learn that Ripple has a massive advantage here too, as Bitcoin and Ethereum have gained huge backlogs and ecosystems at the present. Surprisingly, the two most prevalent networks are extremely slow, all things considered. The 40 minute transaction speed of Bitcoin is very slow than Ethereum and slower in comparison to Ripple. Ethereum has a transaction speed of two minutes while Ripple is offering its transactions in seconds. Transaction times are a central focus point for Ripple, which aims to take over the finance sector and swap traditional financial payment solutions like SWIFT. However, Ripple offering an unbelievably quick transaction processing time, blockchain technology itself is still largely unverified, and that's something investors have to keep in mind.

Mainstream of Public Consciousness

Another important distinction among these three cryptocurrencies sis whether they have entered the mainstream of public consciousness. Ripple is nor so popular current but is offering very attractive prices as compared to Bitcoin and Ethereum. At present Bitcoin and Ethereum are the part of mainstream, but Ripple has been making headlined and it could quickly enter into the central zone in the coming months.

Price War

Bitcoin and Ethereum have both ascended in value over the past 12 months, acquiring the top two spots in the cryptocurrency market. Bitcoin has escalated so quickly in value that those who invested in the early days are almost significantly wealthy now.  The price of Bitcoin has moved to $20,000, but is now steady at around $15,000; a rise of 1,500% over the last 12 months.

Ethereum is competitively valued at around $750, but its price has also increased quickly over the last couple of years. In the meantime, Ripple can be measured as a developing entry to the crypto niche, and is thus only valued at $1 per coin. Seeing the benefits and prospective of Ripple, this number is set to expand considerably over the next few years.

Technical Differences

Ethereum is slightly different than Bitcoin and Ripple. While Ripple is the fourth largest cryptocurrency with respect to market capitalizations, and it has an advantage over Ethereum and Bitcoin which can provide an explosion in its value in future. Ripple is pre-mined, with one hundred billion units in presence, twenty billion of which are reserved by the inventers of the currency. This varies from Bitcoin in specific, which is completely based on the mining of its system to a fixed rate of 21 million prospective Bitcoin units. Bitcoin is debatably the purest cryptocurrency of the three, being totally decentralized, and based on a tolerant ethos. Bitcoin can be seen as a reaction against central bank control of money, and one that has attained a level of success that was barely possible to imagine. Ethereum is also a decentralized platform which runs smart contracts, apps that run exactly as programmed without the likelihood of downtime, fraud and interference from third party. Bitcoin has difficulties in terms of transfer costs, particularly in low-value transfers. Ripple has a substantial advantage over bitcoin by being acknowledged by main banks such as Bank of America, Santander and the Swiss UBS. But ripple’s critics have pointed out that unlike Bitcoin and Ethereum, the Ripple network is not an open blockchain, and is centralized with is its makers. This is because ripple focus on business-to-business (B2B) network and not peer-to-peer (P2P).

So you have seen, each of the three cryptocurrency has a different field of activity. None of the three coins are direct opponents. The only thing they have in mutual is the blockchain technology. Most of the people compare the cryptocurrency feature of both Ethereum and Bitcoin, the truth is that they are massively different developments and have different purposes.