Bitcoin vs XRP: Long-term Returns Reveal Critical Factors in Cryptocurrency Investment

A $500 investment in Bitcoin or XRP in 2014 would have had a profound impact on one's wealth by 2025. While both cryptocurrencies experienced significant growth, the returns were not equal.

BTC, which started from a higher valuation base, delivered a return of approximately 266x, reaching around $133,000. In contrast, XRP, priced in fractions of a dollar at the time, produced a staggering 511x gain, resulting in roughly $255,000.

Both assets required patience and risk tolerance to withstand multi-year drawdowns exceeding 70% at various points. However, early entry and structural development played crucial roles in shaping their valuations.