What Will Happen If the Investment Strategy Goes into XRP Instead of Bitcoin?

Strategy ( previously known as MicroStrategy ) has had a tumultuous journey over the past few years — despite criticism by persistently weathering the bear market, accumulating as much Bitcoin as possible, and reaping billions of dollars in paper profits. The latest data shows that this company, which was once a business analytics expert, currently holds 607,770 BTC, equivalent to 2.9% of the total 21 million cryptocurrencies that will exist. The company has spent a total of 43.6 billion dollars on this acquisition, and it is currently valued at 71.4 billion dollars. One concerning issue that has arisen in recent months is the average price of each Bitcoin. Michael Saylor's continuous determination to buy in — even when reaching an all-time high — means that the price of Bitcoin is increasing. Currently, the price of Bitcoin is at 71,756 dollars, which means the room for price increase is being eroded in the event that the price of Bitcoin drops sharply. But there is currently another discussion about X: what would happen if Strategy actually supported another cryptocurrency… a cryptocurrency that has delivered more impressive returns since August 2020?

XRP Compared To Bitcoin Matt Hamilton of ASIMOV Protocol has analyzed data on this issue for some time. His data shows that if the Strategy invested in XRP instead of BTC, the company would have even higher profits. This figure is calculated based on the assumption that the same amount of dollars was invested in the third largest cryptocurrency in the world, during the same period.

When looking at the performance of both digital assets over the past five years, there is a noticeable gap. Bitcoin has increased by 894% during this period, while XRP has led with a 986% increase. However, based on Hamilton's calculations, if one had only invested in Ripple, the value of this coin would have nearly doubled — over 130 billion dollars compared to 71 billion dollars. So... exactly why is that? Well, it is mainly due to two specific factors: the fact that Strategy's investments have increased significantly over the past year, coinciding with the time when the price of XRP rose sharply after the prolonged battle with the (SEC) ended. The growth rate of Bitcoin over the past 12 months has reached an impressive 75% — rising from 67,000 dollars to 117,000 dollars at the time of writing. But the profits of XRP have far surpassed this figure. It has seen a surge of 423% from 0.60 dollars to 3.16 dollars in the same period. Back on August 1, 2024, Strategy proudly owned 226,500 BTC, meaning they had accumulated nearly 400,000 BTC in just one year. As you can imagine, transferring all of this capital to XRP would make a significant difference. Of course, talking without action is pointless. As a famous Italian chef once said on British television, "if my grandmother had wheels, she would be a bicycle." Presenting these numbers will never change Saylor's mind. Here's why.

'Bitcoin Supreme Dominance' As we have discussed in many previous articles, Saylor's viewpoint is very clear: "Bitcoin dominates and has no rivals." He is an unabashed BTC maximalist, and has previously argued that XRP is nothing more than an unregistered security. This billionaire even believes that Bitcoin should account for 95% of the market share across the entire cryptocurrency market, leaving all other digital assets to compete for the remaining 5%. And there is a reason for this. In his eyes, Bitcoin is digital gold - the perfect currency with the potential to be worth 1 million dollars in the future, possibly even 10 million dollars in the coming decades. Saylor insists that there is no second option, no plan B, and XRP will never be considered in the investment plans of Strategy. However, that does not mean that other organizations will agree with this view — even other treasury companies are currently following in Strategy's footsteps by investing idle funds into Bitcoin. If XRP continues to perform well, we may see Wall Street take more interest in this digital asset. The approval of an exchange-traded fund based on the spot price of XRP will significantly contribute to realizing this. And as we have seen with the recent price increase of Ether, institutions are preparing to move away from Bitcoin and redirect capital flows to alternative ETFs when the time is right. $BTC {spot}(BTCUSDT)