The Cryptocurrency Conundrum: A Look at Bitcoin, Ether, and XRP
As I sit here writing this article, I am reminded of the vast and complex world of cryptocurrencies. With the rise of Bitcoin, Ether, and XRP, it’s hard not to wonder what the future holds for these digital assets. In this article, we’ll take a closer look at each of these cryptocurrencies, their differences, and what investors need to know.
A Brief History of Cryptocurrencies
According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.” The first Bitcoin transaction occurred in early 2009, and since then, the world of cryptocurrencies has grown exponentially.
Cryptocurrency market graph
Bitcoin: The Pioneer
Bitcoin was the world’s first cryptocurrency and decentralized digital currency. Its price has been on a rollercoaster ride, with its lowest level in nearly two months being $60,000. Despite this, Bitcoin is currently up ~40% year to date.
Bitcoin logo
Ether: The New Kid on the Block
Ether is another cryptocurrency run on the Ethereum blockchain platform and has the second largest market share, despite being the newest of the three discussed in this article with its launch in July 2015. Ether’s price dropped to its lowest level in over a month this week, hitting $3,350. ETH is currently up ~44% year to date.
Ether logo
XRP: The Underdog
XRP, which is owned by Ripple and launched in 2012, was one of the larger cryptocurrencies for some time until new coins joined the market. We’ve included it in this article for reference. XRP is currently down ~17% year to date.
XRP logo
Bitcoin vs. Ether vs. XRP
An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. Ether tops the chart, i.e., the price of an ether has changed the most out of all three cryptocurrencies.
Cryptocurrency comparison graph
What Advisors Think About Crypto
Find out what advisors think about crypto from a VettaFi webcast hosted in April with Invesco. Read more
Conclusion
In conclusion, the world of cryptocurrencies is complex and ever-changing. As investors, it’s essential to understand the differences between Bitcoin, Ether, and XRP. With the rise of new cryptocurrencies and the growth of the market, it’s crucial to stay informed and up-to-date on the latest developments.
Cryptocurrency market graph
