Do you have to forget the bitcoin and buy XRP (Ripple) instead?

The stars seem to line up for cryptocurrency investors. Post-electoral appointments for the Treasury Secretary and the President of Securities and Exchange Commission (SEC), as well as a recent decree, clearly told the markets that the United States government is moving to a more pro-Crypto position.

While the buzz has propelled Bitcoin For new heights, the real winner was Xrp (XRP -4.39%)). The price of the crypto token has increased by around 500% in the past year, most of which have taken place in recent months. It can be tempting to empty Bitcoin, the largest and most known crypto, for something more exciting.

So should investors go from Bitcoin and go up to XRP?

Here’s what you need to know.

Why is XRP going so well?

The prices of cryptocurrencies ultimately depend on supply and demand. A room can become viral and enjoy a temporary point, but the adoption of the real world is essential to stimulate the constant demand that supports the long -term price of the token. XRP is the token for the big book of Ripple, a blockchain technology used for transfrontal transactions.

Currently, sending money from one country to another involves an international banking network (SWIFT) which can take hours (or even days) to check and transfer funds. Using Ripple, someone can exchange their currency for XRP, transfer it and exchange it for another currency in a few seconds. This is a case of solid use with significant real value.

In 2020, the Securities and Exchange Commission continued Ripple Labs, the XRP developer, for the sale of XRP tokens, alleging that the company had violated the securities laws. Ripple Labs won a decision widely favorable last year, but the current call process threatened to link Ripple and XRP laboratories in uncertainty, which removed the price of the token.

With a new dry leadership and a potential passage to pro-Crypto-money policies, investors buy XRP in anticipation that the SEC can seek to end its struggle.

Should investors forget Bitcoin?

It is tempting to chase the brilliant object, and XRP has a legitimate long -term potential if it can be more integrated into global payments. However, investors should not rush to abandon Bitcoin.

Bitcoin could make important measures under the new American government administration, and the recent decree of President Donald Trump concerning digital assets reported the potential creation of a federal stock. The order has not explicitly named Bitcoin, but it remains by far the largest cryptocurrency, with a market capitalization of 2 billions of dollars, about 5 times the size of EthereumThe next greatest. It is difficult to imagine a government strategy for digital assets that does not include Bitcoin.

If the United States adopts a strategic reserve that includes Bitcoin, this could be a massive catalyst. It would probably push other countries to follow the plunge and increase institutional accumulation.

Why choose? It could be the best approach.

The great thing about the investment is that you don’t have to choose one or the other. The reality is that Bitcoin and XRP serve different objectives, so that investors can easily justify possession both in a diverse portfolio.

XRP market capitalization is the third largest among cryptocurrencies, but it only represents $ 179 billion today, less than 10% bitcoin. The legal director of Ripple expressed his optimism following the initial trial judging that American banks could adopt XRP while the trial is clear. Of course, only time will tell us if it happens. If this is the case, it could strengthen the case so that XRP is included in any potential strategic reserve.

There are still a lot of unknowns, and some of these questions can take time to answer. However, developments within the government seem to indicate that cryptocurrencies could see an increase in adoption in the coming years, giving investors a lot of justification to buy and hold cryptos with real public service like these .