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Among cryptocurrencies, Cardano has slowly become popular over time, and many investors have turned their attention to Cardano. So is Cardano a good investment? In this article, we will analyze whether Cardano is worth investing in from different perspectives.
What is Cardano
Development on Cardano started in 2015 and it was launched in 2017 by Charles Hoskinson, a co-founder of Ethereum. Hoskinson departed Ethereum after a disagreement with Vitalik Buterin, one of its co-founders; Hoskinson wanted to accept venture financing and turn it into a for-profit company, while Buterin preferred to preserve it as a charity. Following his departure, he co-founded Internet Online Hong Kong (IOHK), a blockchain-engineering firm whose core focus is the development of Cardano, as well as the Cardano Foundation and Emurgo.
In contrast to Bitcoin and Ethereum, which employ proof-of-work protocols, Cardano uses the Ouroboros proof-of-stake system. Proof-of-stake blockchains consume much less energy than proof-of-work blockchains. Cardano does not have a white paper, which is unusual. Instead, it employs design principles aimed at addressing challenges that other cryptocurrencies encounter, including scalability and interoperability, and regulatory compliance.
The Cardano blockchain has undergone numerous upgrades since its launch, including the addition of smart contract functionality. The Cardano blockchain can support a wide range of decentralized finance (DeFi) protocols and NFTs (An non-fungible token is data that is stored or accounted for in a digital ledger, and that data represents something specific) thanks to the availability of smart contracts.
DeFi and non-fungible tokens are two of the most popular crypto areas, and they are getting a lot of traction around the world. As a result, the prospect of NFTs and DeFi being added to the Cardano blockchain has sparked a rise.
Cardano’s price history
On October 1, 2017, an uncommon event in the cryptocurrency industry provoked a collective gasp. With a whopping market cap of around $600 million, a little-known cryptocurrency called Cardano appeared on crypto-tracking sites.
By November Cardano was trading at $0.0291. It was unprecedented at the time to see a new coin arise out of nowhere with such a large market cap and trade at relatively good prices.
Even though the project was still in its early stages, Cardano had a market worth of more than $10 billion by the end of the year.
2018 did not treat Cardano well. It was not an isolated case; the whole crypto market loomed over a downtrend.
In January, Cardano started the New Year with a 28.87% drop to $0.5193.
From March to April, Cardano improved slightly to trade between $0.3120 and $0.3433.
In late December, Bitcoin crashed overnight without any catalyst, dragging down all the cryptocurrencies. Cardano dropped to around $0.0411.
In early January, Cardano price stood at $0.0384. However, two months later, Cardano improved significantly to $0.0723.
Additionally, Cardano did even better in June reaching a high price of $0.0905.
Nevertheless, Cardano’s price dropped to around $0.0328 in December.
Overall, Cardano’s price movements in 2020 were on an upward trajectory.
For example, during January Cardano started trading at about $0.0328, which was a good price. Likewise the February saw a 44.8% increase in price to $0.0475.
Nevertheless during March, the breakout of Covid 19 smothered the bullish sentiment.
Eventually in late October, things started to look up. Cardano followed other soaring cryptocurrencies to move forward, finally reaching a high price of $0.1124.
Moreover, Cardano took advantage of the uptrend to close the year at $0.1814.
In the beginning of 2021, Cardano surpassed the $1 hurdle on the 21st of February to trade at an all-time high of $1.1892. By the same, Cardano was still trading at $1.1892 token as of the 22nd of March.
It is important to note that despite a minor dip during the summer, the crypto market was still in a bullish trend in 2021. As a result Cardano again surpassed the $2 hurdle to trade at $2.0066 on 15th March 2021.
Additionally, based on the larger Bitcoin market’s strong performance, predictions are that we are about to enter a Super Bull Cycle. This is already a proven fact because, on 2nd September, Cardano set an all-time high to trade at $3.0992.
|Year||Maximum Price||Minimum Price|
|Jan-20th Oct 2021||$3.0992||$0.1692|
Is Cardano A Good Investment 1
Comparison between Cardano and other cryptocurrencies
Is Cardano a good investment vs Is Bitcoin a good investment
Cardano is the Ethereum kind of cryptocurrency, whereas Bitcoin is a crypto-monetary kind of cryptocurrency. Additionally, it is important to note the main difference between Cardano and Bitcoin. This difference is that Cardano uses proof of stake protocol as opposed to Bitcoin which uses proof of work protocol.
|Fast speed.||Low speed.|
|Ethereum kind.||Crypto monetary kind.|
|Uses proof of stake protocol.||Uses proof of work protocol.|
Is Cardano a good investment vs Is Ethereum a good investment
Ethereum and Cardano are blockchain platforms that were both created to function as decentralized application platforms. This distinguishes them from cryptocurrencies like Bitcoin which functions as a medium of exchange and as a store of value.
Furthermore, it is true that Bitcoin is seen as a first generation cryptocurrency, and Ethereum is generally considered a second-generation cryptocurrency. In the same light Cardano is setting itself up as a third-generation cryptocurrency. Of course, the reason for this is the safety and scalability of its proof of Stake (PoS) protocol.
|Uses proof of stake protocol.||Uses proof of work protocol.|
|Third generation cryptocurrency.||Second generation cryptocurrency.|
|Functions as decentralized application platforms.||Functions as a medium of exchange and as a store of value.|
Is Cardano a good investment vs Is Dogecin a good investment
While comparing Dogecoin and Cardano, we cannot fail to mention that one important fact. Specifically, Cardano is arguably the most sophisticated blockchain on the market. In contrast, Dogecoin is a comparatively simple cryptocurrency that is driven almost entirely by its community.
|The total supply is capped at 45 billion coins.||An inflationary token.|
|Does not have very many loyal followers.||Has a loyal fan base.|
|Very technically advanced cryptocurrency.||Simple cryptocurrency.|
Is Cardano a good investment vs Is Litecoin a good investment
It is important to note that the main difference between Litecoin and Cardano is that Litecoin is a peer-to-peer network while Cardano is a blockchain system. Peer-to-peer network is a decentralized concept connecting peers. In contrast a blockchain is a decentralized ledger which tracks digital assets on a peer-to-peer network.
|Follows proof of stake.||Follows proof of work.|
|Developed in 2017.||Developed in 2017.|
|Peer-to-peer cryptocurrency.||Public blockchain cryptocurrency.|
Is Cardano a good investment vs Is XRP (Ripple)a good investment
It is true that the main difference between these two cryptocurrencies is that Cardano is a public blockchain platform while XRP is a cryptocurrency owned by Ripple. Additionally, it is equally important to note that Ripple is an RTGS (Real Time Gross Settlement) system through which transfer of money and funds takes place.
|Runs on Cross-Platform.||Runs on Linux, Windows, macOS.|
|Written in the Haskell language.||Written in the C++ language.|
|Distributed Computing.||Real-time gross settlement, currency exchange, remittance etc.|
Is Cardano A Good Investment 2
What do other people think of Cardano
It is true that when people on social media are explaining their reason for liking one particular crypto coin, they pick the analogy that suits their preferred reality. Furthermore, if you don’t think about what they are saying properly, it can sound like a convincing argument.
For example, if someone’s preferred reality is that Bitcoin becomes the only blockchain and the rest wither and die, they invoke the internet-protocol analogy.
Similarly, if someone’s favourite coin is a second tier coin, like Stellar, their preferred reality is that it exists in conjunction with other crypto assets. Likewise, we will have the Bitcoin being preferred by some people as a safe store of value. By the same token Ethereum will gain a lot of fans for DApps while Stellar will receive a lot of love for payments, and so on.
Not to mention that there still be someone else who may be optimistic about their much targeted, lesser known coin. As a result, you will frequently see them invoking the websites analogy.
All in all, as long as a coin does something unique, there is room for it in the market. What is important to note is that a cryptocurrency does not need to be earth shattering; it just needs to find its niche.
Should I buy Cardano
Nobody knows for certain whether cryptocurrency will succeed. However, if you believe in its long-term potential, be prepared to hold your investments through the waves of volatility. For example Bitcoin has lost more than 80% of its value in the past, and Ethereum’s value has plummeted by nearly 95% on occasion. Evidently, if you are not comfortable with short-term volatility, cryptocurrency may not be the right investment for you.
How to mine Cardano
Of course, you are now aware that Cardano cannot be mined the same way Bitcoin is mined. Instead, the Cardano blockchain uses the Proof-of-Stake system to validate blockchain transactions.
Cardano price trends in the next few years
According to Longforecast prediction the price of Cardano will experience some highs and lows in the coming years. We have summarised their predictions by picking out the highest and lowest prices of the Cardano coin for the next five years and highlighted them in the table below. For more details, please read this article.
|Year||Maximum Price||Minimum Price|
|20th Oct- 31st Dec2021||$2.37||$1.64|
Where can I buy Cardano
Some of the best cryptocurrency exchange platforms to buy Cardano from include: Kraken, Coinbase, Binance, eToro and Sofi. Once you have already bought the Cryptocurrency, you can head over to Bexplus to get a 100 times leverage on the crypto coin you have already bought.
Cardano is without a doubt one of the most promising applications in the blockchain space today. This is especially true since Cardano has strong fundamentals and a lot of momentum behind it.
It is a fact that Cardano has been touted by many people as the Ethereum-killer. However, we want to make it clear that this is extremely unlikely. In fact in our opinion, Cardano will curve out its own niche within the global blockchain ecosystem, but that does not mean that it will flip Ethereum.
It is important to note that if you are bullish on crypto and blockchain in general, then it makes a lot of sense to invest in Cardano. Especially if you own Ethereum, then you should know that Cardano is more than likely to result in a net increase in gains.
In conclusion, remember that crypto investments are inherently risky and you should not invest any money you are not willing to lose. Additionally, crypto is extremely volatile and its prices experience big swings. You should therefore invest cautiously.
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