Bitcoin (BTC) Down 49%, Ripple (XRP) Down 70%... Who is the Winner in Long-Term Investment?

▲ Bitcoin (BTC), XRP/AI generated image ©

In the long-term investment competition, Bitcoin (BTC) has been evaluated as a less uncertain option than XRP (Ripple).

According to The Motley Fool, an investment media outlet, on August 1 (local time), Bitcoin is the world's largest digital asset with a market capitalization exceeding $1.3 trillion, but it has fallen 49% from its all-time high recorded last October. XRP also stood at $1.09 as of July 30, down 70% from its all-time high last June.

Bitcoin received high praise for operating as designed even in a bear market, due to its value transfer function, fixed supply, and strong network security. While its high liquidity makes it sensitive to market sentiment and thus highly volatile, its limited supply supports the logic that it is an asset that can defend against expanding national debt and the resulting inflation.

XRP has potential for use in cross-border payments, Real-World Asset (RWA) tokenization, and AI-based agentic commerce, based on its fast processing speed and low fees. However, it is uncertain whether its value will accrue to token holders even if adoption increases. If transaction parties do not hold XRP for long periods but quickly buy and sell it during the payment process, it is difficult to conclude that increased usage will directly lead to price increases.

Both assets still have risks. Bitcoin must overcome the long-term threat of quantum computing to its cryptographic system and the powerful network effect of the US dollar. As a store of value, it also competes for funds with other investment opportunities, including the artificial intelligence industry. However, the timing of quantum computing's advancement is unclear, and Bitcoin is believed to still have time to strengthen its security.

XRP must prove its technical utility while overcoming regulatory barriers and competition. Competitors include the US dollar and stablecoins, as well as other blockchains emphasizing speed and cost, and even Bitcoin utilizing the Lightning Network. While acknowledging XRP's growth potential, the media stated that the uncertainties surrounding its value accumulation structure and competitive environment are greater, and among the two assets, Bitcoin was chosen as the relatively safer and superior long-term investment.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*