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Cardano (ADA) vs. Ripple (XRP) Which One Should Australians Buy in 2021?

Despite the turbulent economic times, we have experienced over the best part of two years, cryptocurrency has largely survived the ruckus. Not only that but many crypto investors are currently enjoying a lucrative bull run. Two which have stood out from the crowd are Cardano (ADA) and Ripple (XRP). They are ranked 6th and 7th largest cryptocurrency in the world respectively.

If you’re considering an investment, where should you put your money in 2021? Let’s dig deeper to try and make an informed choice. Incidentally, if you are interested in cryptocurrency investment you’ll find the best brokers for ETF on wetten.com, so check this out when you have time.

The Case for Cardano (ADA)

The ADA token has risen considerably over the last 12 months to become the 6th biggest cryptocurrency on earth. A significant reason for the meteoric rise is the fact that Cardano was developed to allow the development of complex decentralised applications known as DApps.

This is arguably the future as DApps facilitate user interaction without a central body or intermediatory. Digital art markets and crypto exchanges are among two features that are proving popular among ADA investors.

It should be noted that this use case is very different to Bitcoin (BTC), which is designed to be a medium of exchange and store of value. A fiat currency alternative if you will.

There are drawbacks to Cardano’s current setup. As a decentralised platform, there is a possibility that it could fall foul of regulation, and DApps are not as discoverable as they would be on a centralised platform.

That said, the developer of Cardano, IOHK, have announced they are creating a certified DApp store to address some of the current shortcomings. Should this happen, widespread adoption of ADA could ensue making the asset more valuable.

Cardano isn’t without competition. Both Ethereum and Solana are decentralised platforms. So far, investors are interested in all three rather than just the one so if Cardano can differentiate itself clearly, it has a future.

The Case for Ripple (XRP)

Unlike ADA, XRP’s use case is facilitating speedy transactions making it the ideal currency for cross border trade. This emphasis has paid dividends for the Ripple team as according to Ripple’s website, over 100 financial institutions including American Express and Santander have partnered with RippleNet, the enterprise blockchain network.

To put the speed of transactions in perspective, RippleNet can handle 1500 transactions per second compared to Bitcoin’s 4.6.

Ripple’s development focus on facilitating speedy transactions have led to the development of enabling its token XRP to be partnered with over 120 currency pairs. At the time of writing, over 55 countries can send XRP across borders providing great liquidity when needed.

If we consider data released by Research and Markets, immigration will be more widespread and as such sending money home will be more in demand. This could be a market for Ripple to exploit given that it has almost instant transfer times and transaction costs of less than a penny. Bank transfers can’t compete. Transfers take between 1 to 5 days depending on the countries involved.

Like Cardano, Ripple has negatives too. It is currently engaged in a lengthy lawsuit with the Securities and Exchange Commission (SEC) in the US. The case which began in December 2020, focuses on whether Ripple should have declared XRP as a security rather than a commodity.

Experts believe the case will not be resolved until 2022. Should the result be favourable to Ripple then it is possible the price will go bullish. Should the result not go their way, it is possible a bear market will ensue as the value of XRP drops.


What we have here is XRP’s lawsuit vs ADA’s competition and the success of its DApp store. Both currencies have excellent use cases and are under constant development. These two factors are needed for cryptocurrency success.

For XRP, the result of the lawsuit will be significant. Ripple’s current argument against the SEC is that other cryptocurrencies are classed as commodities. Should SEC win, additional bureaucracy will ensue as Ripple will have to disclose information to the SEC. Not a good feature for a use case that states speedy transactions as a primary facet.

ADA on the other hand is depending on the success of its DApp store to maintain and excel over the competition. Should this be a battle lost, presumably investors will start to shift funds into their competitors.

Invest Now or Later that is the Question

Given that both currencies have huge potential but face looming challenges, you as an investor have two choices. Invest now and hope that lawsuits and competition do not become an issue, or wait till later to see how they fare. Success for either currency will almost certainly result in a bullish market.

Crypto is by nature volatile and given this perhaps the best solution for you an Australian investor is to opt for both. That, however, is your decision. Hopefully, this overview will guide you to making the right choice for you.


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