A cryptocurrency market participant provided a numerical comparison showing how the same amount of investment can generate significantly different returns depending on whether it is placed in Bitcoin or XRP.
Projection, which was made available on X and focuses on price levels and capital growth, it shows how XRP has a better percentage advantage over Bitcoin at current valuations.
How the numbers favor XRP over Bitcoin
The comparison starts with a $5,000 investment. At current prices, Bitcoin would need to rise to around $180,000 for the initial $5,000 investment to double to $10,000. Interestingly, many bullish predictions are made for Bitcoin achieving the target price of at least $180,000 in the next few months, so that’s most likely a guarantee. However, Bitcoin’s position as the largest cryptocurrency acts as both an advantage and a limitation.
At the time of writing, Bitcoin has a enormous market capitalization of $1.8 trillion. Given Bitcoin’s already enormous market capitalization, any significant move requires a huge inflow of capital over the long term. Its recent adoption among institutional traders and its role as the largest cryptocurrency provide stability, but its size limits the speed at which it can multiply in value. Each incremental gain requires larger amounts of fresh capital to enter the market.
XRP, on the other hand, has a much smaller market capitalization of $128 billion. Using the same $5,000 investment in XRP produces a significantly different result, as the analyst assumed. If XRP reaches the $10 price level, the value of this position will raise to $25,000.
This therefore means that in its current form, XRP has a lot better profit potential than Bitcoin. The argument presented is not that Bitcoin lacks upside, but that XRP’s capital efficiency is higher if both assets are heading towards commonly cited bullish targets.
Risk profiles and return expectations
The difference in projection also shows the different risk tolerance of both cryptocurrencies. Bitcoin is more attractive to investors who prioritize long-term exposure and relative stability. Bitcoin predictions range from $150,000 well over $1 million.
On the other hand, XRP will attract traders who are willing to accept greater volatility in exchange for the possibility of greater profits. The cryptocurrency has been the subject of many bullish forecasts by analysts due to growing optimism about its role in financial institutions and recent exposure by XRP ETF spot.
Bullish sentiment is so robust that a few analysts have done this yet predicts how XRP could potentially cost $100 in the next few years. For example, one analyst noted that XRP has the so-called potential to reach $100 before Bitcoin reaches $1 million and that it may even reach $1,000 before Bitcoin reaches $19 million.
Featured image from Freepik, chart from Tradingview.com
