Ripple’s XRP is one of the top cryptocurrencies in the crypto market today. The year 2020 was one of the best years for Ripple as it was performing at its best. The price was reaching places and for a pretty long time, it secured 3rd place in the CoinMarketCap. Things started to see a downside only after the U.S Securities and Exchange Commission (SEC) filed a lawsuit against Ripple. Due to this, Ripple’s XRP market cap came down to $11 billion (at the time of writing) from $24 billion on 21st December 2020, i.e., just before the lawsuit was filed. It came down to 5th place on the CoinMarketCap.
However, in the last week of January 2021, Ripple was again on fire and XRP’s price reached $0.36 (at the time of writing) going up and securing 4th place on CoinMarketCap. This might be a good sign that things are finally turning in favor of this cryptocurrency.
How are Ripple and XRP different?
People often ask questions like how to mine Ripple. However, they often become surprised when they come to know that Ripple is not the name of the cryptocurrency. Ripple is the company that is behind the cryptocurrency XRP. The former one refers to a company that created the Ripple Consensus Ledger. Ripple is the technology that acts both as a cryptocurrency and as a digital payment network for financial transactions. Ripple is a privately owned software company.
XRP has gained a lot of popularity over the past few years because it acts as a bridge between different currencies. XRP does not discriminate between any fiat/cryptocurrency and another, and thus, makes it easier for any currency to be exchanged for another.
Ripple and XRP do share some level of interdependence. The valuation of Ripple is essentially tied to the market price of XRP, as Ripple owns so many of the tokens. Ripple’s XRP is used by banking and financial institutions to facilitate fast and cheap cross-border transactions and payments.
How to Mine Ripple?
Asking “How Can I Mine Ripple?” will probably be wrong. One should rather ask how they can buy Ripple. When it comes to cryptocurrencies, mining is one of the things that is almost taken for granted. However, mining Ripple is not quite technically possible. This is because unlike Bitcoin and various other cryptocurrencies, Ripple (XRP) only uses a semi-centralized ledger technology. This helps to help quicken and facilitate its transactions. The Ripple Network works on the Proof of Stake (PoS) algorithm and not on the Proof of Work (PoW) algorithm. Ripple (XRP) is generated through a crypto-ledger similar to blockchain technology. The transactions are powered by a “centralized” blockchain to make it more reliable and fast.
As Ripple’s XRP is a cryptocurrency, it cannot be mined. However, you can mine other cryptocurrencies and then look for crypto exchanges that will let you exchange them for XRP. One can call it one of the closest and easiest ways to mine and get their hands on Ripple’s XRP.
Ripple is one of the largest and most popular cryptocurrency today. Despite the legal issues that it is facing, it still has a community that supports the cryptocurrency very closely. In fact, the popularity and success rate of the crypto token is so huge, that just before the SEC lawsuit, there have been discussions about whether XRP could reach $100 in 2021. Moreover, one would hardly like to let go of a cryptocurrency that charges a low commission rate.