It has been a remarkably eventful year for the crypto sector. Crypto prices rocketed higher after Donald Trump's presidential election victory in November 2024, largely due to the prospect of an incoming pro-crypto administration. Yet while the Trump administration has issued many favorable executive orders and Congress has also passed substantial cryptocurrency legislation, the rally has fizzled out due to an array of macroeconomic concerns.

**Bitcoin** (CRYPTO: BTC), the world's largest cryptocurrency, is now down about 10% this year (as of Dec. 18), while **XRP** (CRYPTO: XRP) is down more than 21% this year. Which is the better buy?

![Person looking at computer in dimly lit room.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F846494%2Fperson-computer-3.jpg&w=700)

Image source: Getty Images.

## Bitcoin: The Digital Debasement Trade

Bitcoin, the original cryptocurrency created by the unidentified programmer Satoshi Nakamoto, has long led the sector and often served as a bellwether for the industry. Bitcoin continues to operate on the proof-of-work consensus mechanism, which many major networks have moved away from due to the significant amount of energy consumed and the inefficiency of the system in processing transactions.

However, this hasn't stopped Bitcoin from leading the pack, largely due to a growing thesis that Bitcoin and its 21 million finite coin supply can serve as a form of **digital gold** and therefore as a hedge against **inflation**. Bitcoin is also benefiting from what's known as the **debasement trade**. Many investors are increasingly concerned that the U.S. government's growing pile of debt, the **fiscal deficit**, and the Federal Reserve's constant printing of money will essentially make the dollar worth significantly less over time, which is why assets like gold have done so well.

Now, many still question this thesis because Bitcoin often trades like a tech stock and has struggled since October, while also starting to deviate from gold. The token has fallen by more than 30% from its record high in October. However, Bitcoin has survived so many declines like this in its short life that many investors still have high confidence.

Additionally, the **regulatory environment** for crypto has improved markedly under Trump, whether you consider the creation of a U.S. Strategic Bitcoin Reserve, the implementation of Bitcoin-friendly regulators and advisors, and Congressional legislation intended to clear up regulatory gray areas.

## XRP: A Potential Player in International Payments

XRP, now the fifth-largest cryptocurrency by **market cap**, has benefited immensely from the new administration. Trump installed new regulatory leaders, particularly at the U.S. Securities and Exchange Commission (SEC), which led the agency to drop a major lawsuit against Ripple, the company behind XRP, as well as its co-founders.

XRP operates on a robust technical network capable of processing 1,500 transactions per second (TPS), making it a potential player in the global payments market. Ripple has also built an interesting ecosystem that attempts to bridge the gap between traditional banks, investors, and the crypto world. The company's solutions span instant payments, custody of digital assets, stablecoins, and a multi-asset prime brokerage.

The advantage for institutions in the payment sector is that they can send instant payments abroad, leveraging XRP, the network, and Ripple's stablecoin, **RLUSD**, with tremendous flexibility. This allows for conversions between various fiat currencies and cryptocurrencies at low cost. XRP also enables **on-demand liquidity**, which means banks don't need to pre-fund foreign accounts, providing financial institutions with better flexibility in terms of their own capital and liquidity.

Ripple already has several traditional bank customers. The bigger question is, can it truly capture a meaningful share of international payments amid the competition from other cryptocurrencies and traditional solutions?

## Which Is the Better Buy?

Both Bitcoin and XRP have immense potential, in my opinion, so I think a smaller, more speculative position in both coins is at least warranted. However, I ultimately prefer Bitcoin to XRP. Although the digital gold narrative cannot be fully confirmed at this time, I believe Bitcoin can offer a unique form of diversification that few assets can provide.

Furthermore, Bitcoin's total market cap is still only a fraction of gold's, so it's not being given the full weight of the digital gold argument. Bitcoin's resilience after extreme sell-offs also gives me added confidence in the token's long-term staying power.

Key PointsBitcoin, the world's largest cryptocurrency, had been on a monster run, at one point topping $126,000 per token.

Bitcoin vs. XRP: Which Crypto Is the Smarter Investment in Today's Market?

## Indiana Lawmaker Advocates for Inclusive Crypto Legislation

Indiana State Representative Kyle Pierce is pushing for cryptocurrency legislation that doesn't play favorites. In a recent interview, the Republican lawmaker emphasized that his proposed bill is intentionally broad to avoid "choosing winners and losers" in the digital asset space.

### Broad Approach to Crypto Regulation

Pierce's legislation, introduced earlier this month, focuses on Indiana's treatment of cryptocurrency with a principle of inclusivity. **"My goal is to promote the cryptocurrency market, not Bitcoin, Ethereum, Tether, or whatever it may be,"** Pierce told Decrypt.

Unlike some state-level crypto bills that include market-cap thresholds (like New Hampshire's $500 billion requirement that only Bitcoin currently meets), Pierce's bill doesn't set such limitations. While he acknowledged that not all cryptocurrencies might be suitable for retirement investments, he believes legislation should support the broader ecosystem.

### Key Provisions of the Bill

The proposed legislation includes several important components:

- **Allowing public retirement and savings programs to invest in cryptocurrency ETFs**
- **Establishing protections for crypto users and firms**
- **Preventing Indiana from targeting cryptocurrency miners** with negative government actions

### Protecting Crypto Miners

Pierce's bill specifically addresses cryptocurrency mining operations, which consume significant energy to secure networks like Bitcoin. **"They will not get special treatment, but we're also making sure you won't be able to pinpoint them and try to focus negative government actions against them,"** he explained.

This protection extends to all miners, despite the energy consumption differences between proof-of-work networks like Bitcoin and more energy-efficient proof-of-stake networks like Ethereum.

### Changing Political Landscape

The lawmaker noted that the political environment for crypto legislation has improved significantly since President Trump signed the GENIUS Act into law in July. **"I think that there's a lot more trust,"** Pierce said, adding that while he doesn't want to assume his bill will pass, there hasn't been major opposition yet.

Pierce has consulted with various industry groups during the bill's development, including the Satoshi Action Fund, which accepts Bitcoin donations and claims to have helped pass crypto policy in eight states.

<iframe src="https://decrypt.co/videos/interviews/gdJ2yV4f/the-us-lawmaker-trying-make-crypto-mainstream-in-the-usa" width="560" height="315" frameborder="0" allowfullscreen></iframe>

### Looking Forward

As conversations about cryptocurrency continue with constituents, including a miner located just 10 minutes from his district's borders, Pierce remains optimistic about creating legislation that supports the entire digital asset ecosystem rather than favoring specific cryptocurrencies.

Bitcoin may be the first digital asset, but it shouldn’t be the only one affected by legislation, Indiana State Rep. Kyle Pierce told Decrypt.

Indiana Lawmaker's Crypto Bill: Why Bitcoin Shouldn't Be the Only Winner in Legislation

A debate on X over seemingly conflicting bitcoin forecasts from Fundstrat analysts drew a response from Tom Lee, highlighting differing mandates and time horizons.

**A debate on X over whether Fundstrat analysts are sending mixed signals on bitcoin intensified over the weekend**, prompting a response from the firm’s co-founder that appeared to endorse a more nuanced explanation of the differing views.

The discussion began after an X user known as “Heisenberg” (@Mr_Derivatives) shared screenshots that he said showed contrasting outlooks from Fundstrat’s leadership. One highlighted comment attributed to Sean Farrell, Fundstrat’s head of digital asset strategy, outlines a base case in which bitcoin could retrace toward the **$60,000–$65,000 range in the first half of 2026**. Another pointed to Lee’s recent public comments suggesting bitcoin could make **new all-time highs, potentially as soon as early 2026**.

The juxtaposition quickly gained traction on X, with users questioning whether Fundstrat was contradicting itself or offering unclear guidance to clients.

That framing drew a detailed response from another X user, “Cassian” (@ConvexDispatch), who [said](https://x.com/ConvexDispatch/status/2002438848953851993?s=20) he was a Fundstrat client and argued the debate was misleading. Cassian wrote that the firm’s senior figures operate with **different mandates rather than a single unified forecast**, distinguishing between long-term macro views, portfolio-level risk management and technical analysis.

According to the post, Farrell’s comments reflect a **defensive positioning framework focused on drawdown risk, flows and cost bases**, rather than a long-term bearish thesis on bitcoin. Cassian said Farrell had reduced crypto exposure within Fundstrat’s model portfolio as a risk-management decision, while remaining constructive on longer-term adoption trends beyond early 2026.

Lee’s role, by contrast, was described as more focused on **macro liquidity cycles and structural shifts in markets**, including the idea that institutional adoption and exchange-traded products are changing bitcoin’s historical four-year cycle dynamics. Technical analyst Mark Newton was also cited as operating independently, with views based strictly on chart structure rather than macro narratives.

Lee, who is also the chief investment officer at asset management firm Fundstrat Capital and the executive chairman of BitMine Immersion Technologies (BMNR), appeared to acknowledge that explanation by [responding](https://x.com/fundstrat/status/2002466430890225737?s=20), “Well stated,” to Cassian’s post on X, a move likely to be widely interpreted by market participants as a **tacit agreement with the characterization**.

While neither Lee nor Farrell has issued a formal public statement addressing the screenshots directly, Lee’s response suggested that the **differing outlooks are not mutually exclusive**.

At the time of writing, bitcoin was trading around **$88,283**, up about 0.5% over the past 24 hours, while the broader crypto market was up by the same amount.

Tom Lee weighed in after X users questioned whether Fundstrat analysts were contradicting each other on bitcoin, pointing to differences in role, timing and risk management.

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