The cryptocurrency community is abuzz with speculation: could XRP replicate Bitcoin's performance from $2 in 2012 to $1,200 in 2014? That is why history seems to always attract investors and some of them are comparing Bitcoin's position to XRP's current situation. While these assets have differing prospects for utility and popularity, the latter has evolved into a discussion about the future potential of XRP.
The historical development of Bitcoin
Bitcoin was a relatively new technology in 2012 and was only recognized and adopted by a small number of people. With low public popularity and no support from any banks or other financial institutions, reaching $1,200 by the end of 2013 was a surprise.
While XRP appears with greater transparency and institutional support. It has applications in cross-border payments and in trading with financial institutions, which is a missing factor for Bitcoin in its early stages. However, the question remains: Does XRP meet the criteria to replicate let alone surpass the exponential growth path of Bitcoin?
Supporting factors for the potential growth of XRP alongside challenges
While Bitcoin may be the spiritual child of cryptocurrency and blockchain technology, Ripple's XRP has been integrated with mainstream financial institutions. If Ripple succeeds in maintaining its current trajectory, its core product - XRP - will ensure that banks and payment service providers engage in cross-border transactions. Such use cases provide tangible utility in a truly commercial sense, which has always been a precursor to sustained value.
Regulatory certainty in some parts of the world has also boosted sentiment towards XRP in the market. This makes $2 a feasible stopping point towards a larger increase as this cryptocurrency gains more acceptance and liquidity.
Uncertainty in regulations in some areas, competition from stablecoins, and volatile markets could pose a threat to the development path of XRP. Furthermore, comparing XRP to the development of Bitcoin may oversimplify the increasingly competitive and saturated market environment.
Although XRP may not be able to replicate Bitcoin's robust growth, it will certainly follow a different trajectory depending on the progress of innovation, favorable market conditions, and planned integration.