One of the biggest crypto coins in the game, Cardano, has been making noise since the ADA cryptocurrency launched in September 2017. But how good Cardano really is?
Let’s find out!
What Is Cardano?
Cardano is a fully open source decentralized project based on blockchain technology. It is a smart contract platform co-founded by Charles Hoskinson and Jeremy Wood and developed to provide the most progressive features.
History of Cardano and ADA
Cardano was founded in 2015, however, ADA was launched two years later. The platform is named after an Italian polymath, Gerolamo Cardano, and the coin after Ada Lovelace, Lord Byron’s daughter.
At first Cardano was trading at $0.2. However, its launch luckily coincided with the 2017 crypto bubble. The coin began experiencing massive growth in November and reached its peak in January 2018 reaching $1.22.
After that ADA, like most other coins at the time, decreased in price drastically. However, it did increase its value shortly in May of the same year reaching $0.378.
After that ADA’s price has been quite consistent overall.
Why should you invest in ADA?
- Safe Investment
According to CoinMarketCap.com, ADA ranks 11th in the list of crypto coins by market capitalization. It has a market cap of $2.39 billion and a daily trading volume of $166,5 million.
Being one of the TOP 20 crypto coins on the market currently, ADA is a great investment. It is not as unstable as some of the other smaller scale crypto assets because of its market cap.
On the contrary, it is also virtually immune to market manipulations such as ‘pump and dump’ schemes. This is once again connected to ADA being one of the biggest players in the crypto-asset game.
ADA, despite being so popular, is also very young and hasn’t fulfilled its full potential yet.
Cardano uses a unique algorithm named Ouroboros, which is considered a large innovation in the crypto sphere. Ouroboros is a proof of stake mining algorithm that is superior to the proof of work one because of its efficiency.
The Cardano platform was built on a language called Haskell, which uses a strictly mathematical approach and facilitates safety. This in turn promotes the prevention of bugs.
Cardano is regularly compared to Ethereum and one of the biggest distinctions is the fact that the Cardano network is much safer and the ADA currency, compared to Ether and Bitcoin, is scalable.
- Future of Cardano
When talking about investments, the most important thing is the future. According to most crypto enthusiasts, ADA is here to stay and is a great long term investment.
The crypto coins solve problems of currencies that came before it, such as Bitcoin and Ether. It also has a great team behind it, including the co-founder of Ethereum, Charles Hoskinson. ADA is also the first asset that was built based on mathematical philosophy and is aiming to be traded with other cryptocurrencies without a trusted third party.
ADA may seem like a good investment with great potential, however, there are still some issues.
The first one is that the total supply of the coin is 45 billion, hence the price won’t be going up as rapidly as with Bitcoin or Dash that have respectively a total supply of 21 million and 19 million. ADA most probably increase in price slower than these coins.
Another drawback is that even though Cardano is undoubtedly better than Ethereum it is still slower than EOS and has a bigger total supply.
Overall, Cardano could be a great long-term investment, however, it is not as advantageous as a short-term investment. Just invest in ADA and observe how big it becomes through your coin tracker. If you don’t know how to use them, take a look at the most comprehensive cryptocurrency portfolio tracker guide out there.