Will ADA Cardano OVERTAKE Ethereum ETH and other crypto coins in the next bull run?
In this crypto post, we will discuss the Cardano Ada cryptocurrency project.
We will write about:
What is Cardano (ADA) Which crypto coin is better Cardano ADA or Ethereum ETH ADA Cardano and BTC Bitcoin - the difference Cardano ADA Staking – How and where to stake Ada Cardano Cardano ADA Risks 5 reasons why we think that ADA Cardano will outperform in the next Bull Market Is it the right time to buy Ada Cardano now?
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What is ADA Cardano?
Cardano (ticker symbol, ADA) is a decentralized proof of stake (PoS) blockchain named Ada after Augusta Ada King, who lived in the 19th century and is commonly regarded as the first computer programmer.
Most important things to know:
- Cardano is founded in 2015 by Charles Hoskinson. It was launched in 2017. - Cardano has a goal to be a decentralized application (DApp) development platform with a multi-asset ledger and verifiable smart contracts.
- ADA Cardano uses a proof-of-stake (POS) consensus protocol.
- Cardano cryptocurrency token is called "Ada."
ADA Cardano or ETH Ethereum?
Co-founder of Ethereum Charles Hoskinson started the Cardano ADA project in 2015 and launched the platform in 2017.
He has positioned Cardano as an alternative to Ethereum. Both platforms are used for similar applications, such as smart contracts, and have the goal of building a connected and decentralized system.
Anyway, Ada Cardano considers itself an updated version of Ethereum and has anointed itself a "third-generation" platform, compared with Ethereum’s "second-generation" platform. The blockchain platform also has a goal of providing banking services to the world’s unbanked.
Cardano Blockchain is a 3rd generation Blockchain that solves the problems of the first two generations. These problems are scalability, interoperability and sustainability!
Difference between ADA Cardano and BTC Bitcoin?
There are many differences between Bitcoin and Cardano. Bitcoin was developed to be a peer-to-peer payment system, while Cardano is an ecosystem that allows other developers to create tokens, decentralized applications, or create other use cases for scalable blockchain networks.
Cardano uses PoS in its consensus and doesn't reward Ada as an incentive in a competitive mining process like Bitcoin does rewards BTC coins. This reduces the energy and waste footprints by not requiring large amounts of electricity to power computers specifically designed for mining.
Staking ADA Cardano (Where to stake ADA)
Cardano users can stake their Ada tokens, and begin earning rewards for participating. There are many staking pools you can choose from to stake your Ada Cardano. It's very important to read through a pool's website, user reviews, complaints, or issues to be sure you're joining a reputable pool or exchange. Because some exchanges can give much bigger rewards but it come with many other difficulties.
We use Binance and Exodus wallets to stake our ADA tokens.
Risks for investing in Cardano ADA cryptocurrency
Some investors criticize Cardano for the lack of utility. And, those investors could not be further from the truth. Cardano is on the brink of a decentralized app (DAPP) explosion. The blockchain is backed by extensive research, great tokenomics, a simple staking model, and has the benefits of being an eUTXO chain.
On the other side, competition is one of the biggest risks. Competitor blockchain, Avalanche, crashed after a launch of a popular dapp called Pangolin and that blockchain uses an account model. Protocols have been constantly delaying their release to prepare for the rush of users. It should not be a surprise that the blockchain will be congested when dapps deploy and developers are trying to prepare for the influx of users.
Another thing is Cardano’s Late Entry to Market.
Since Cardano focuses on a slower approach to developing a better product, the blockchain is missing out on the first-mover advantage.
For example, Ethereum has been around since 2015 and has the largest total value locked with around 60%. Since Ethereum was released the earliest, the ecosystem has the most developers with more than 4000 developers. Although Cardano’s developer size grew by more than 100% from December 2020, Cardano has only about 400 developers at the moment.
Cardano did miss out on an early entry, but if the technology is innovative, it could overtake Ethereum in the future.
There are 5 reasons why we think that ADA Cardano will outperform in the next Bull Market:
While many feel that Cardano’s technology will be nothing more than vaporware, we have outlined reasons why that is not the case.
1. Security
Peer-reviewed a Cardano is one of the best candidates for institutional adoption because of its strategy of careful development. Having the “measure twice cut once” approach, all of the changes to the blockchain are peer-reviewed before deployment. Website Decrypt.co explains it best, “all changes and new features introduced are developed, reviewed and agreed upon by academics before being used”.
2. Hydra Scaling Solution
Hydra will improve scalability across the network to make Cardano the fastest blockchain in existence. This will be done by implementing off-chain transactions. This layer-2 scaling solution would process many transactions off-chain before settling the results on the main chain. Batching the transactions lowers fees and increases transaction speeds. Upwards of 1 million transactions per second can be achieved with Hydra after full implementation, bringing more utility to the Cardano ecosystem.
3. Cardano advantage of eUTXO
Cardano’s eUTXO (extended unspent transaction output) model has two clear advantages over Ethereum’s account model. Cardano today uses the Extended UTXO model, abbreviated EUTXO. The purpose of the EUTXO model is to support higher expressiveness of programmability while maintaining all the benefits of Bitcoin’s UTXO model.
One, the eUTXO model allows users to check transactions to see if they will succeed before they are sent. There are no worries about spending unnecessary transaction fees just to see a transaction get stuck. Also, the fees can be calculated before the transaction is sent, so there is no need to guess how much is acceptable.
Two, if the same inputs are not used, an eUTXO model allows for more transactions to be done in parallel. This allows for more efficient transactions. Cardano is already number 3 for transaction volume and the fees are only $75,000 compared to Ethereum’s $44 million. If the Cardano ecosystem can use the eUTXO system to its full potential, it could cover the shortcomings of account-model blockchains and make transactions faster and cheaper.
4. Great tokenomics
ADA Cardano tokenomics protect users from inflation. The max supply of ADA is 45 billion and the total supply is 34 billion. That means 75.5% of ADA’s max supply has been minted.
Cardano validators (pool operators) and their respective delegators earn rewards every epoch (5 days) on the Cardano Network. Rewards are a combination of monetary expansion and transaction fees.
The monetary expansion comes from the reserve; the reserve is determined by the difference between the total supply of ADA and the maximal supply of ADA. And there is no need for an explanation for the transaction fees.
Cardano inflation is exponentially decreasing every year. Additionally, as keys are lost it will remove tokens from the circulating supply. While the current 5.7% may seem high, delegators experience 0.7% inflation after adding rewards. With the ease of staking, it is in an investor's best interest to stake ADA CARDANO. Investors are still being diluted slightly, but if we look at the chart they are performing better than other currencies.
5. It’s cheap and under the first 10 coins on CoinMarketCap which attract new investors
Most new people who are coming to crypto for the first time, don’t understand how cryptocurrency work. They will see Cardano on coinmarketcap.com seeing that ADA costs only 0.5 dollars while Bitcoin is at $20 000. They would think what if Cardano ADA goes to $100, I will 200x my investment. Having Ada Cardano on almost every exchange makes it even easier to invest in.
To find out more info about ADA - Cardano Ada Technical analysis, ADA Cardano Price Prediction, and how to buy Ada Cardano cryptocurrency, please watch our youtube video…
If you think about investing in cryptocurrency coins like ADA Cardano, you should consider three steps investing formula that included WHAT to invest in, WHEN to invest, and WHEN to get out of the investment that we talk about in our Crypto Masterclass.
Also, we wrote a free e-book that can help you to start if you are a beginner in trading and investing…
You can find our cryptocurrency trading and investing e-book if you click on this link.
Thank you for your time,
We wish you all the best in your ventures,
ADV Capital Academy Team
