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Better Buy in 2025: XRP, Dogecoin, or Bitcoin?

Eli GrantFriday, Dec 13, 2024 5:08 am ET
9min read


As the crypto market continues to evolve, investors are looking for the next big opportunity. With the resurgence of the "Trump Trade" and the potential impact on various financial assets, let's analyze the prospects of XRP, Dogecoin, and Bitcoin as potential investments for 2025.



1. XRP: The Bridge Currency

XRP, developed by Ripple, is primarily used in the RippleNet payment network to facilitate quick and inexpensive international currency transfers and remittances. Ripple works directly with banks and financial institutions, which use XRP as a bridge currency to enable cross-border payments more efficiently than traditional banking systems.

XRP's use case and partnerships with financial institutions make it an attractive investment. However, its centralized nature and ongoing legal battles with regulatory bodies pose risks to its long-term growth. The SEC's stance on XRP as a security has been a significant factor in its price trajectory and adoption. In August 2024, a judge ruled that XRP might only be a security under specific circumstances, which was seen as a positive development for XRP investors. The SEC's appeal of this decision is ongoing, but investors are optimistic that a resolution under the incoming Trump administration could lead to increased adoption and a bullish price trajectory for XRP in the long term.



2. Dogecoin: The Meme Coin

Dogecoin, initially created as a joke, has gained significant traction due to its low cost and fast transaction processing times. Its use case is primarily as a tipping currency on social media platforms. While its meme status and Elon Musk's endorsement have driven its popularity, its lack of a clear roadmap and development team raises concerns about its long-term potential.

Elon Musk's influence on Dogecoin's price and adoption could potentially increase under a Trump administration, given his support for the Trump campaign and his appointment as the head of the "Department of Government Efficiency" (DOGE). Musk's public endorsement of Dogecoin in the past has driven its price and adoption, with a 139% increase since Nov. 5, 2024. However, the long-term implications depend on whether Musk's influence translates into concrete actions that support Dogecoin's value and adoption, such as integrating it into Tesla's payment systems or promoting it within the DOGE.



3. Bitcoin: The Digital Gold

Bitcoin, the first and most established cryptocurrency, enjoys widespread acceptance and is likely to maintain its status as a store of value. Its decentralized nature and robust security make it a reliable choice for long-term investment. However, its scalability issues and high energy consumption may hinder its growth in the future.

Bitcoin's price has surged 41% since Nov. 5, 2024, reflecting the industry's expectation of a friendlier stance under a Trump administration. The SEC's approval of dozens of crypto-based exchange-traded funds (ETFs) this year has also given institutional investors a way to buy Bitcoin in a safer, regulated environment.



In conclusion, while XRP's use case in international transfers and Bitcoin's established reputation offer long-term potential, Dogecoin's lack of a clear roadmap and development team may hinder its growth in the long run. Technological advancements and use cases play a crucial role in determining the long-term potential of these cryptocurrencies, and investors should consider these factors when making investment decisions. As the crypto market continues to evolve, staying informed about market trends and regulatory developments will be essential for investors looking to capitalize on the next big opportunity.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.