Better Buy in 2026: XRP (Ripple) or Bitcoin?

Core Viewpoint - The legal battle between Ripple and the SEC has significantly impacted XRP's price, but optimism arose with Donald Trump's pro-crypto campaign and the eventual settlement in August 2025, leading to XRP reaching a new high in July 2025 after seven years [1][2]. Ripple and XRP Overview - Ripple faced a lawsuit from the SEC in 2020, which argued that XRP should be classified as a financial security due to its issuance to banks and institutions [2]. - XRP was created as a bridge currency for Ripple Payments, allowing banks to standardize transactions and reduce costs associated with foreign exchange fees [3][6][7]. Ripple Payments Network - The Ripple Payments network enables instant cross-border transactions, eliminating the need for intermediaries and reducing settlement times and costs for banks [4][6]. - Banks can use XRP to facilitate transactions at a minimal fee of 0.00001 coins, significantly lower than traditional foreign exchange fees [3]. Market Performance and Comparisons - Both XRP and Bitcoin reached record highs in 2025, but both are projected to end the year negatively as investors reassess their cryptocurrency investments [5]. - Bitcoin is viewed as a legitimate store of value, with a capped supply of 21 million coins, while XRP's adoption is uncertain due to the availability of fiat currencies in the Ripple Payments network [8][9][13]. Future Outlook - XRP's potential for growth is hindered by the introduction of Ripple USD, a stablecoin that offers less volatility for transactions, making XRP less attractive for banks [14]. - Analysts express a more favorable outlook for Bitcoin, predicting significant price increases driven by its acceptance as a store of value and the availability of Bitcoin ETFs [10][11][12][15].