Optimism is high in the cryptocurrency space, and it’s no wonder. Post-halving years are traditionally the apex of crypto bull markets, suggesting the potential for a continuation of last year’s gains. However, this bull market is unlike any other.
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That’s because this bull market is now taking place against a backdrop crypto proponents could barely have imagined a few years ago. The new Trump administration has a wholly favorable stance toward all things crypto and is packed with Bitcoin (BTC) enthusiasts and there has even been talk of the US establishing a strategic Bitcoin reserve.
Meanwhile, the OG crypto keeps surging ahead, hovering just under a new high reached only a few days ago with its 12-month returns now standing at ~160%.
While Bitcoin has indeed delivered some big returns over the past year, the gains notched by the third biggest crypto, Ripple (XRP), are even more impressive. This coin has soared by a huge 523% over the past year, although practically all those gains have come in the wake of Trump’s election win in November. Investors are hoping the new look SEC will drop its case against Ripple, claiming that it sold XRP as an unregistered security.
So, despite Bitcoin’s huge strides, XRP has proven a better investment in recent times, but will that continue to be the case?
Investor Anthony Di Pizio highlights the fact that XRP runs on the Ripple Payments network and allows for transactions to settle instantly, providing it with a “legitimate use case.”
That makes it a more interesting cryptocurrency with the potential to drive long-term value. However, the catch is that banks aren’t required to use XRP on the Ripple Payments network, as they can conduct transactions using fiat currencies instead. “In other words,” says Di Pizio, “further upside in XRP doesn’t rest on the success of Ripple’s payments network. XRP is basically subject to the whims of speculative investors, which means it’s not so different from a token like Dogecoin.”
There’s also the fact the token supply is controlled by Ripple, and this makes it fundamentally different from a decentralized cryptocurrency.
Bitcoin, on the other hand, despite also being a “speculative asset,” has plenty of things going for it, and that makes it the better choice here, according to the investor.
“Its decentralized nature, its capped supply, and the availability of ETFs have consistently pushed it to new highs,” Di Pizio noted. “Now, with the potential for a U.S. government Bitcoin reserve on the horizon, I think [Bitcoin] has the best case for upside in 2025 (and beyond).” (To watch Di Pizio’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
