Better Buy in 2026: XRP (Ripple) or Bitcoin? | The Motley Fool

Ripple developed a global payments network called Ripple Payments, which lets banks send money across borders instantly. The company created XRP ( XRP 1.54%) as a bridge currency to standardize each transaction, so it's one of just a few cryptocurrencies with a genuine use case. Bitcoin ( BTC 0.53%), on the other hand, is the world's largest cryptocurrency. Although it isn't popular for payments, a growing number of investors consider it a legitimate store of value because of its unique qualities. Both XRP and Bitcoin set new record highs in 2025, but they are currently on track to end the year in the red as investors pare their bets on cryptocurrencies overall. Which one is more likely to recover in 2026? In my opinion, the answer couldn't be clearer. Image source: Getty Images. The case for XRP (Ripple) The Ripple Payments network can save banks a lot of time and money. Without it, two banks using different payment infrastructure would have to use an intermediary to complete their desired transaction, which adds days to the settlement period and increases costs. Ripple Payments allows those banks to transact with one another directly, resulting in instant settlements no matter what existing infrastructure they use. By using XRP through Ripple Payments, the banks can also cut out costly foreign exchange fees. Instead of an American bank sending U.S. dollars to an Italian bank, it can send XRP instead which would incur a transaction fee of just 0.00001 coins -- or a fraction of one U.S. cent. But in 2020, Ripple was hit with a lawsuit from the U.S. Securities and Exchange Commission (SEC), which threatened to derail its business model. Since Ripple occasionally issues XRP to banks and institutions, the SEC argued the token should be classified as a financial security, like a stock, bond, or any other instrument typically issued by a corporate entity. The legal battle weighed on the price of XRP for years, but investors found hope when Donald Trump won the presidential election in November 2024, because he campaigned on a pro-crypto agenda. In July 2025, XRP hit a new high for the first time in seven years in anticipation of an upcoming settlement between Ripple and the SEC, which was then made official in August. With the legal shackles removed, XRP should -- in theory -- have a green light to trend higher from here. But the token is down 45% from its recent peak, and I'll explain why in a moment. CRYPTO: XRP Key Data Points The case for Bitcoin Unlike XRP, Bitcoin isn't frequently used in payments. It isn't very popular among banks, and according to crypto directory Cryptwerk, just 6,673 businesses around the world are willing to accept it in exchange for goods and services. Instead, the cryptocurrency's value is typically driven higher by the investment community. Bitcoin is fully decentralized, so no person, company, or government can control it. It also has a capped supply of 21 million coins, which creates the perception of...

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