Officially Launched in 2015; as the most innovative blockchain infrastructure of this digital age, Cardano — the world’s first blockchain to incorporate a peer-reviewed research strategy into its core principles, rose to the position of the third-largest cryptocurrency by market cap, just recently. Some might say that such growth is expected largely due to the platform’s propensity for continuous scalability. Given, it is a third-generation public blockchain and decentralized application development platform that is built in stages. Others might argue that the price of ADA has surged in large part due to the Mary Hardfork Upgrade implemented by IOHK — Cardano’s foremost partners barely a week ago.
However, the Cardano platform has earned itself international recognition, and slowly gaining mainstream adoption, as its price soars even higher.
Wanna learn more about Cardano? Stick around; as we are going to be talking about why Cardano is just kickstarting its rally, and why it is a good entry point to buy now.
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WHY IS CARDANO JUST GETTING STARTED?
Okay, so, Cardano just recently released its Mary upgrade is part of the Goguen suite of upgrades. Now, what does this mean for you? What does this mean for the price of ADA? Well, that is exactly what we are going to be talking about on here going forward.
So, currently, Ethereum — the decentralized application development platform, allows users to create smart contracts on top of its blockchain. A smart contract is a feature that allows you to create your own token on top of the Ethereum blockchain. Many of the cryptocurrencies in existence right now, are built on top of the Ethereum network including but not limited to USDT, BNB, LINK, USDC, DAI to mention a few. Which makes such tokens ERC-20 compliant. Even though, Cardano is only but implementing a similar feature to the smart contract functionality for the first time since its launch. It aims to eradicate the common hassle involved with transactions fees, as it allows users to create tokens or assets — as the case may be — that can be spent in that native asset’s ecosystem and used as a transaction fee, using an even more decentralized technology by changing the consensus network — evident in Ethereum — to a proof-of-stake blockchain. The Cardano blockchain is such that, it eradicates all of the setbacks evident in its number competitor — Ethereum.
IS THIS A GOOD ENTRY POINT FOR CARDANO?
Let’s take an example: Say we want to create a native coin — Crypt — on the Cardano blockchain, and I want to send some Crypt coin to you. Unlike on Ethereum; on the Cardano network, I don’t have to pay that transaction fee in ADA any longer, as I can pay it in Crypt coin. I can pay for the network’s transaction fees using ADA or any of the native tokens. In contrast, transaction fees — or gas fees — on the Ethereum network are being paid for using the platform’s native currency — Ether.
What this simply means is that: The transaction or gas fee been paid to the miners of the network, — who constantly supply computational power to the network — in an effort to process that transaction, would be allocated based on a Proof-of-stake mechanism, so that it entails mass adoption and foster a much higher throughput. And not the person with the fastest computational power as proposed by Ethereum’s Proof-of-work Protocol — that incurs an extortionately high fee, which gets even higher the more transactions are processed on the network at any given time, birthing the gas wars.
Now, what are Gas wars? Gas wars are when people try to outdo one another, to get their transactions to the blockchain faster than the other person they are transacting with.
As such, nearly all of the digital wallets that would support Cardano’s native currency — ADA, will also support Cardano’s native tokens. Which if you ask me would cover a large clientele in the nearest future.
Now as we know, Ethereum is coming up with its Ethereum 2.0 version, which would be coming up hopefully later this year — as an upgrade slated to tackle transaction speed through multiple staking strategies and improved scalability. Given, its current consensus mechanism, is the main causative agent to gas wars, subsequently leading to a much slower transaction speed. This is what is stunting the growth of Ethereum right now, allowing some other blockchain — with an even capable feature like an increased transaction speed, resulting in a reduced transaction time— like Binance Chain and now Cardano, to swoop some of that value away from Ethereum.
I would like for you to think of Cardano in the same light, as a renowned crypto enthusiast once put it, like this:
“Imagine if things were opposite and Bitcoin had always been proof-of-stake with fast, cheap transactions. Then years later Cardano came along and said “hey, we do the same thing but with a consensus method called ‘proof-of-work’. Transactions cost three bucks and take ten minutes, and the network requires the electricity consumption of Greece just to process 7 transactions per second”.
Of course, you would tell them to get the fudge out and shut the front door.
From all indications, Cardano is steadily gaining even more traction, as it slowly crawls its way up to becoming one of the most sought-after alt-coin — in this alt season. And given its extensive use-case and propensity for scalability, there is no telling how much increase is to be expected of this inventive blockchain protocol.
Hodling the native currency of one of the most actively used blockchains on the market, and by virtue of our most recent findings; you are guaranteed.
Cardano’s adoption and network effect are so incredibly important to growing the Cardano ecosystem and the value of its in-house currency — ADA. Because, Cardano is the base layer protocol right now, that allows other cryptocurrencies to build right on top of it. Accordingly, every other cryptocurrency that is built on top of it, would be needing the platform’s ADA token, at some point in time — in order to succeed, grow or work. And therefore, the value of ADA grows, since it is of the underlying infrastructure.
Ethereum currently has an approximate value of 280,000 (two hundred and eighty thousand) percent return on investment since its ICO days — when its price was at about $0.3 dollars. While Cardano only just reached over 5,515.4 (five thousand five hundred and fifteen point four) percent return on investment — which is an approximate value of 56.15 (fifty-six point fifteen) percent increase to the dollar.
So, if you were late to Ethereum or feel like you were late to Ethereum, you are now given a second opportunity to make some good money, and invest in the early stages of a revolutionary and incredibly fantastic blockchain like Cardano. So, get your stocks up, and get ready to buy the dip and increase your cryptocurrency portfolio — and subsequent returns — as you wait to hit the moon in no time.
And always remember, if you want to invest in Ethereum you can do that, if you want to invest in Cardano you can do that as well. You don’t have to pick one over another. Even though, one may be better than the other, even though, one might succeed than the other. As a matter of fact; that should be the only reason, if not any, to invest in both. It’s called diversification of your funds.
Then again, if you are looking to invest in cryptocurrencies, If you are looking for a financial gain from these cryptocurrencies but are not really interesting in the underlying technology — as is normal with most investors. As I know most people are invested in cryptocurrencies just to make some money. Which is fine!
If that is the case, from an investment perspective, it makes sense to purchase some Cardano. Because you are getting in on the early stages of something that could be revolutionary.
Once again, this is not financial advice, as I am only telling you why I am bullish about Cardano and why I think that it is only just getting started. So, sit back, relax, and enjoy the ride, as it is gonna get bumpy pretty soon.
Again, this is cryptocurrency forecasting, always keep in mind that these predictions are based upon personal opinion and not entirely a certainty, as I am not a financial adviser but a crypto enthusiast like yourself. So always consult with your financial advisor, and also always remember to do some extra research before you buy into any cryptocurrency we discuss here.
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This Is Why Cardano Is Just Getting Started! (Huge Cardano ADA News) Ada Cardano, Cardano. was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.