XRP (Ripple) versus Bitcoin: Which is better to buy during the Trump administration?

During the first term of President Donald Trump in his post, it was not uncommon to hear him talking about the stock market during press interviews. Somehow, this is not completely surprising given its history as a real estate developer. Since the oath was once again last week, Trump has spoken repeatedly about other market -related elements such as interest rates and definitions.

However, it appears that the president has interest in another area of ​​the market outside its traditional dynamics: cryptocurrency.

Below, I check two common encoding currencies and make the situation I see best to buy over the next four years of Trump in the Oval Office.

XRP (Ripple): A good opportunity for $ 3?

ripple It is a network of payments as an alternative to ancient solutions such as the financial communications protocol (SWIFT) around the world. The main benefits of using Ripple’s infrastructure are faster and fertile levels of liability compared to prevailing service providers. Xrp (Xrp -2.85 %)) he Coded This is traded on the Ripple, as it provides banks and companies an innovative way to send money back and forth while circumventing the huge foreign exchange.

As of writing this report (January 27), the price of XRP is about 3 dollars. Cheap, right? Well, as I wrote before, the low dollar amount is not always equivalent to affordable assets.

XRP price Data by Ycharts

In the graph above, you can see that XRP was trading less than one dollar for most of the past year. But in November, the cryptocurrency increased and is now characterized by a market capital of $ 171 billion.

The primary catalyst that fueled the height of XRP was to re -election Trump. During his period in the campaign’s path, Trump was often promoting the rhetoric of the prosperity-especially from an organizational point of view.

Moreover, Trump’s nomination for Paul Atkins To lead the Securities and Stock Exchange Committee (SEC) is also seen as a major positive for XRP. The reason is that Ripple has spent the past few years a legal storm with SEC, which claims that the company Selling XRP as an unregistered guarantee. Given the ATKINS support for the Crypto scene, some speculate that its leadership in the SEC (if confirmed) can put an end to a Ripple lawsuit and pave the way for a brighter future for XRP.

Bitcoin: Is President Trump wear the way for Bitcoin’s future?

Soon after his inauguration, Trump entered the Oval Office to sign piles of executive orders. Among them is the matter of “strengthening US leadership in digital assets and financial technology.”

Although this statement is somewhat wide, I see this is particularly positive Bitcoin (BTC -2.32 %)). It is logical around the president and others in his inner circle constantly floats on the idea of ​​strategic bitcoin reserves.

Bitcoin is an encrypted coin more than XRP, and its president’s support gives me a degree of confidence. In order to be clear, just because the president has signed an executive matter that his advisers are publishing to work on more friendly frameworks and potential dependence on Bitcoin to the American public budget does not necessarily mean that any of these things happens.

Ruling

Although I see that ATKINS is confirmed by the SEC leadership can be a pure positive for Ripple, I also think that if SEC decreases a lawsuit against the company, any XRP fluctuations may be transient. In other words, Ripple won its case against the Supreme Education Council will not necessarily be a success story for XRP specifically. The reason is that banks and companies are still working with a Ripple payment network without adopting XRP in any way.

Moreover, I was warning against following any fluctuations driven by momentum that XRP can try it in a state of ripples out of its legal disorder. For me, XRP remains a speculative opportunity in the world of encryption and I hesitate to invest in it now.

However, I am optimistic about that Better days against Bitcoin over the next four years. I think that the organizational environment surrounding the encryption will change dramatically under Trump, and in this way that positively affects the price of bitcoin.

While Bitcoin still holds a degree of speculation, I am more upward about long -term prices compared to other cryptocurrencies such as XRP.