Yahoo Finance Bitcoin or Ripple: Which Is the Better Buy?
Written by Amy Legate-Wolfe at The Motley Fool Canada
Bitcoin (CRYPTO:BTC) and XRP (CRYPTO:XRP) have both been making large gains this week. With strong earnings coming in, more jobs in the U.S. market than originally thought, and a strong economy, Motley Fool investors are ready to jump back into cryptocurrency.
Both Bitcoin and Ripple have done well this week. Of course, both are at entirely different prices. Still, cheap doesn’t mean good, and neither does expensive when it comes to stocks. So which should Motley Fool investors buy today?
Bitcoin
Bitcoin has long been touted as the king of cryptocurrency. After passing $85,000 per token in the last year, it soon dropped off, especially as tech stocks fell as well. After hitting January lows, however, Bitcoin is back up 33% as of writing to about $56,000.
Now there are a few things to point out when it comes to Bitcoin. First, there are numerous new digital currencies coming on the market all the time. These have room for far strong growth in terms of returns. Especially as Bitcoin continues to remain at such incredible prices.
That being said, the entire cryptocurrency world seems to revolve around Bitcoin. Quite literally. If there is positive movement for Bitcoin, pretty much every other cryptocurrency grows along with it. And of course, the reverse is true.
That’s why Bitcoin seems to continue to be the king at the top of the heap. And that will likely be the case for at least the next decade, if not more. So it does seem like a pretty safe bet for long-term Motley Fool investors.
Ripple
Then there’s Ripple. Now this week, Ripple grew after Bitcoin also started to climb. And for the same reasons. However, there was an additional reason that this cryptocurrency started to jump. That comes from the preliminary results of its case against the Securities and Exchange Commission (SEC).
Ripple management were the focus of a case where the SEC raised concerns that management handed out tokens to potential investors as far back as 2012. However, executives provided documents to prove this wasn’t the case. Therefore, it’s expected that the judge will throw the case out.
This also saw Ripple climb even higher this week. Percentage-wise, it grew an astounding 35% compared to Bitcoin and its 6%. However, Ripple remains just above the $1 mark. So those moves are far more substantial when it’s only moving by a few cents.
Foolish takeaway
So what should Motley Fool investors think when it comes to Bitcoin and Ripple? In the short term, it looks like Ripple definitely has an advantage. Should the SEC ruling become official, it’s likely it will see yet another boost. In fact, it’s still edging towards that US$1 mark.
But long-term investors who can afford Bitcoin would probably do better to consider it instead. In fact, there are some predicting the token to rise to US$200,000 in 2022. While I think that’s a stretch, even US$100,000 would be an incredible doubling of today’s price.
The post Bitcoin or Ripple: Which Is the Better Buy? appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin.
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