市场见解

Is Cardano a smart cryptocurrency to buy now?

The Cardano project has garnered significant interest in the crypto community.
The post Is Cardano a smart cryptocurrency to buy now? appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In recent years, the cryptocurrency space has become quite crowded. Gone are the days when just a few digital assets dominated the headlines. There are now over 8,000 different crypto assets, and new tokens join the fray all the time. Of course, the crypto market itself has already created tremendous wealth, rising 240% in the last year alone. But given the sheer volume — not to mention the hysteria around meme tokens like Shiba Inu and Dogecoin — it can be challenging to separate the good from the bad.

That being said, Cardano (CRYPTO: ADA) stands out from the pack. Not because of its functionality — at least, not yet — but because of its experienced developer team and strong growth strategy. Does that mean Cardano is worth buying? Let’s take a closer look.

The value proposition

In 2015, ex-Ethereum founder Charles Hoskinson started the Cardano project along with former colleague Jeremy Wood. Two years later, the Cardano blockchain (powered by the ADA token) made its debut, featuring the first peer-reviewed consensus protocol: a type of proof of stake (PoS) known as Ouroboros.

Compared to Ethereum, which relies on energy-intensive proof-of-work consensus, Cardano’s PoS consensus makes it more eco-friendly and sustainable. Moreover, rather than rushing to implement new features, the developer team has based each decision on academic research, dividing the Cardano project into five stages that address its foundation, decentralization, smart contracts, scalability, and governance.

The project is currently in phase three, and smart contract functionality was added to the blockchain in September 2021. If you’re new to cryptocurrency, smart contracts are just computer programs that run under predefined conditions, and they form the heart of decentralized applications (dApps), including decentralized finance (DeFi) applications. Of course, this functionality is new, meaning Cardano’s ecosystem of dApps is quite limited compared to other blockchains like Ethereum and Solana. But that should change in the future.

There’s also another point to consider. Cardano has been clocked at 257 transactions per second (TPS) — that makes the platform much faster than the likes of Ethereum, which can handle roughly 30 TPS. But it pales in comparison to Visa‘s theoretical limit of 24,000 TPS. If Cardano is to achieve widespread adoption, it needs to be faster (i.e., more scalable).

Phase four will solve that problem with the implementation of Ouroboros Hydra, an upgraded version of the consensus protocol. Specifically, Hydra will enable multiple side chains to be added to the main blockchain, thereby distributing the network load more efficiently. Hydra is still in development, but simulations have clocked side chains at 1,000 TPS, and with 1,000 side chains, Cardano could theoretically support 1 million TPS in the future.

The investment thesis

Cardano is certainly a more speculative bet than other cryptocurrencies, and that’s saying something. However, its academically driven developer team is executing a smart growth strategy. Assuming Cardano makes good on its promise of tremendous scalability, the platform could be quite popular with dApps builders and DeFi investors a few years from now.

On that note, increased adoption of services on the Cardano blockchain would translate into more transaction fees, meaning more demand for the underlying ADA token. That should drive its price up over time. Likewise, owning ADA tokens makes you a stakeholder in the network. You could start your own stake pool to help verify transactions and secure the blockchain, or you could simply lend your tokens to an existing stake pool — either way, you’d earn rewards.

Of course, all of this is contingent upon Cardano achieving the necessary scalability, and upon adoption by both dApp developers and consumers. But with 4,000 projects currently in the works, I don’t think it’s a stretch to imagine Cardano as a thriving ecosystem a few years down the road. That’s why this cryptocurrency looks like a smart long-term investment. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Cardano a smart cryptocurrency to buy now? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Australia’s first physical crypto gift cards are now on sale for Christmas

What crypto investors should know about these ‘Ethereum killers’

Bitcoin, Ethereum, and Cardano continue to recover from late-week selloffs

Why Cardano, Polkadot, and Solana all popped on Tuesday

Crypto market crash: The latest on Solana, Cardano, Ripple, and Terra

Trevor Jennewine owns Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Ethereum and Visa. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!