What is Cardano? Why does its price suddenly rise? Is it possible for the price of Cardano to be 10x or more? Read this article to the end to know if you should invest in it.
What is Cardano?
Cardano is also a type of cryptocurrency similar to Bitcoin and Ethereum, as of writing this article, Cardano is the third largest Crypto in the world due to market cap base. Cardano launched around September 2017, the founder of this crypto project is Charles Hoskinson who is also a co-founder of Ethereum. Cardano can also be considered a 3rd generation or hitech in the world of cryptocurrency, we can consider that the first generation is Bitcoin, which is the original cryptocurrency that is not so perfect because it will somewhat lack scalability because Bitcoin is not so fast and can not handle so many transactions so it can be considered more of a store of value or digital gold.
Another of the 2nd generation of Crypto is Ethereum due to its Smart contracts. Ethereum here is the improved version of Bitcoin but like Bitcoin it also has a problem with scalability and the gas fee is very expensive so here comes Cardano who intends to solve this problem, Cardano is more scalable because it can handle transactions faster to both of them of the network, meaning if we are looking for a future currency, Cardano is more applicable because it can handle up to 1 million transactions per second compared to Bitcoin which is only 4 transactions per second and 20 transactions per second in Ethereum.
This became possible due to the so called proof of stake compared to the proof of work of Bitcoin and Ethereum where miners use so much computing power, electricity and even energy so it is durable and cannot be considered eco friendly, compared to Cardano that you only need to stake coins to be able to mine or validate transactions and because of this it is faster and does not waste energy. Cardano aims to make it easier to communicate with different cryptocurrencies even though they have different networks and protocols, just like Ethereum, Cardano also has Smart contracts feature.
Why is the price of Crypto rising?
Just like in the stock market, news really has a factor because when it's good news, most likely the price of a crypto project will increase and when it's good news, there will be more buyers, of course when it's bad news most likely the price will go down or fall, as many as selling or panick selling.
This is also one of the reasons why the price of a crypto will increase especially if there are good updates, either there is an update on the network, there is an upgrade or there is an improvement or anything that will improve a crypto project because it just means that the project is legit and active and the development team working on that crypto project.
3. Big Players
When there are also famous and large companies or institutions that promote or buy a particular cryptocurrency, its price will actually increase just like Elon Musk, whether we like it or not, he has a big influence in the market, once he said or tweeted on his Twitter account. He is also one of the reasons why the value of cryptocurrency has increased in general, Bitcoin is one of them, where there is even an instance that his company Tesla even intends to accept Bitcoin, the same thing happened with Dogecoin that even if it was just a meme coin, its value increased because of Elon Musk's constant posting. There are also institutions or large companies that buy cryptocurrencies so its prices are also rising such as Tesla, Square and Microstrategy which are large companies that hold cryptocurrencies such as Bitcoin.
Why is it possible for Cardano to be 10x?
As I said earlier, there is also good news and updates on Cardano so it is possible to rise. What happened to Cardano recently was an upgrade in September called the Alonzo Upgrade. Now, what is this Alonzo? the Alonzo update or upgrade will be the reason why the Cardano blockchain will have the ability to process Smart contracts. If Smart contracts are enabled in the Cardano network, there will definitely be many businesses, Dapps, DeFi, games and others that can be adapted to the Cardano network and when that happens, the price of Cardano will increase as happened in Ethereum which is the second largest. cryptocurrency worldwide and Cardano is now at number 3.
Apart from this update, another reason why the value of Cardano is increasing is because many people are also looking for alternative investment other than Bitcoin and months ago it seems that Elon Musk say something on his Twitter that he no longer wants to accept of Bitcoin if Bitcoin does not fix a problem regarding the environment issue because it uses a lot of energy in Bitcoin mining so the other alternative coins will rise who are more eco friendly and one of them is the Cardano, because Cardano is not proof of work like Bitcoin but it is proof of stake so it has less energy consumption compared to Bitcoin.
Should you invest in Cardano?
For me, this Cardano is just starting, so the price movement is not too high or its price is not that big yet, I think very few people know about Cardano but once the updates and upgrades continue, Cardano network will definitely increase its value. Personally I am bullish on Cardano and I believe that its price is still cheap now compared to its price in the future, if we compare it to Bitcoin or Ethereum it is much cheaper. Should I invest? the answer here depends, because your decision is up to you, yes or no, if you believe in this project that will succeed in the future, that this is really the future when it comes to finance, currency and even Smart contracts, you can invest.
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The information above does not constitute investment advice, financial advice, trading advice, or any sort of advice. I'm not a financial advisor nor an expert in such, so make sure you always do your own research first before investing. Happy Trading, Earning, Playing and Learning everyone!
Thank you for reading!