Matt Hamilton, former Director of Developer Relations at RippleX, recently discussed his views on why XRP is superior to Bitcoin (BTC), currently the world’s leading cryptocurrency by market capitalization.
In an interview on the Mr. M Podcast, Hamilton provided insights into the fundamental differences between the two cryptocurrencies, focusing on their scalability and transaction efficiency.
XRP is More Scalable Than Bitcoin
Hamilton pointed out that XRP is better suited for large-scale transactions than Bitcoin. He explained that Bitcoin’s limited scalability significantly hinders its practicality for global usage.
The Bitcoin network can process between seven and ten transactions per second, which Hamilton believes makes it inefficient for broader adoption. Based on these figures, Hamilton suggested that the global population could only engage in about two Bitcoin transactions in their lifetime if Bitcoin were the sole system for financial transfers.
Moreover, Hamilton noted that Bitcoin relies on supplementary solutions, such as Layer-2 networks and custodial systems, to enhance its scalability. However, he expressed concern that while these systems could indeed improve transaction speeds, they might compromise the decentralized principles on which Bitcoin was built.
In contrast, the XRP Ledger (XRPL) was designed to handle a significantly higher volume of transactions. Hamilton highlighted a milestone from the previous year when the XRPL’s transaction throughput rose from 1,500 transactions per second (TPS) to 3,400 TPS, showing its potential to accommodate global-scale transactions without the need for external systems.
XRP Transactions Are More Affordable
Another critical difference Hamilton emphasized was the cost of transactions on both networks. He pointed out that Bitcoin’s transaction fees are relatively high and are likely to increase further as the mining rewards that currently subsidize the network diminish.
Hamilton speculated that if these trends continue, Bitcoin may become a cryptocurrency primarily used by institutions or wealthy investors, while everyday users might be priced out of the network.
By contrast, he explained that transactions on the XRPL are much cheaper. The average transaction fee on the XRP network is approximately $0.0002, a fraction of the cost compared to Bitcoin. This low-cost structure enhances the token’s appeal as a practical tool for everyday transactions, enabling its potential for mass adoption.
Addressing Concerns About XRP Freezing
During the interview, the host of the Mr. M Podcast raised concerns about an incident where someone’s XRP was allegedly frozen after they sold a substantial amount of the cryptocurrency.
Hamilton responded by clarifying that XRP itself cannot be frozen on the XRPL. He explained that the case involved Ripple co-founder Jed McCaleb and that the funds were seized by an exchange, not within the XRP Ledger.
Hamilton stressed that if McCaleb’s XRP had remained on the XRPL rather than being transferred to an exchange, it would not have been frozen. He contrasted this with the situation on other networks, including Bitcoin, where authorities have occasionally frozen assets.
Hamilton made it clear that this kind of external intervention is not possible within the XRPL ecosystem, reinforcing the XRP security and autonomy.
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Hamilton’s comments underline his belief that XRP is a more efficient and scalable solution for global financial transactions. With its ability to process thousands of transactions per second with minimal fees, XRP is positioned as a more practical option for large-scale and everyday use.
On the other hand, Bitcoin’s scalability limitations and rising transaction fees may hinder its broader application, potentially relegating it to a niche asset used primarily by financial institutions and wealthy individuals.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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