What are the benefits of investing in Cardano?
Knowing the pros of investing in Cardano is essential to help you decide for yourself if ADA is a good and potentially profitable investment. Though there may be more pros than cons, it doesn’t mean you should look at them quantitatively – some cons may outweigh several pros!
So, here’s a quick look at the pros of investing in Cardano.
+Great development team:
Founded by Charles Hoskinson and Jeremy Wood, co-founders of Ethereum, Cardano gained a lot of popularity after its official release in 2017. It is also peer-review to ensure. There are no weaknesses in the protocol (more on that below).
Note that to prevent bugs and hacks, Cardano tested various protocols and developed an advanced blockchain.
As mentioned above, Cardano benefits from being one of the few coins. That has been reviewed by academics who largely praise it. Further to that, many academics work for IOHK and write papers on what they propose the project do next to improve Cardano.
This gives Cardano a lot of credibilities that most coins do not have and is very useful for those who want to learn more about Cardano too.
+Cardano uses multiple layers:
This is one of the main advantages of Cardano.
By implementing a settlement layer and a computational layer. It ensures unlimited scalability and quick transactions. It also allows updates to be performed. Without interfering with payments and transactions.
Cardano’s potential as a fully open-source platform with code written in the Haskell programming language is also worth considering. Here we should note that Haskell is a functional language that is all about functions and blocks that perform tasks when needed.
Cardano is proclaimed to be a third-generation blockchain. It is considered to be more reliable than other cryptocurrencies as ADA keeps overcoming challenges. That other platforms have encountered.
It is also more scalable than Ethereum (second generation) and more decentralized than Bitcoin (first generation) as it scales horizontally (through its protocol Ouroboros Hydra).
+Cardano is secure:
It is a proof-of-stake protocol that ensures mathematically proven safety. Given the increased number of cyberattacks in the crypto sector, there’s no doubt that security is crucial.
Note that Cardano’s system has unparalleled plans for managing security and privacy.
+Cardano can provide digital identity:
Just like other cryptocurrencies, Cardano relies on decentralization. The good news is that Cardano can provide digital identity to unbanked citizens throughout the globe, especially in developing countries across the globe.
In fact, Cardano has started to cooperate with over 54 countries. Note that according to the World Bank, the world’s population with no access to financial services is over 1.7 billion.
+Growing presence in Africa:
In 2021 Cardano alongside its commercial arm Emurgo, began working on their ‘Africa strategy’, where they plan to boost adoption across the continent by using it to solve real issues. So far, they have been most successful in Ethiopia in what has been called ‘the biggest blockchain deal ever’.
According to Cardano Africa, by partnering with Ethiopia’s Ministry of Education, they aim to provide a digital identity for millions of students and teachers. The idea is that this will better monitor school performance and verify grades, which they hope will boost education.
This all fits with what Hoskinson is planning to do with Cardano, previously stating: “My goal is to run countries on this blockchain”. These lofty aims show how far Hoskinson believes Cardano can go, entering all parts of how the world functions.
+Companies are ‘flocking’ to Cardano:
The number of companies investing in Cardano is predicted to increase. With the announcement of Cardano’s recent upgrade and the surge in Cardano’s price. Charles Hoskinson more than a hundred companies are looking to switch from Ethereum to Cardano.
(Do note though, that there is some speculation over the validity of these claims – we’ll dive more into Hoskinson and his claims in a moment!). Interestingly Rhodilee Jean Dolor of Finbold noted that amid the increasing adoption of Cardano, Google searches for ‘Cardano news’ in the last 12 months had peaked in several countries.
Most notably the Netherlands, Ireland, Australia, Switzerland, Singapore, Austria, Germany, the UK, South Africa, and Belgium.
It is suggested that we may see more adoption of Cardano in these countries.
+Cardano is now listed on Coinbase:
As of the 16th of March 2021, Cardano joined Coinbase which is a huge achievement because Coinbase is generally very careful with the coins they decide to list. They don’t just list any coin. To give you an example of how cautious Coinbase is, at the first sight of Ripple’s debacle with the SEC, they cut them loose!
Cardano’s availability on Coinbase will make it easier for more traders to purchase it which will likely increase trading volume.
+Cardano’s price increased by 720% in the first two months of 2021:
As we mentioned at the beginning of the article, Cardano had an amazing 2021. According to Capital.com, Cardano’s price had increased by 720% by the end of February 2021 since the start of the year, reaching an all-time high.
Cardano even managed to overtake Binance Coin and Tether in terms of market capitalization too! And temporarily became the third-largest coin.
+Proof of stake algorithm:
Cardano was one of the earliest adopters of the proof of stake algorithm. Which is seen by many as more efficient than proof of work.
Proof of stake is said to reduce the amount of computing power needed which means that. It is more energy-efficient, cheaper, and better for the environment as well.
Hoskinson, when discussing Bitcoin, which uses proof of work, said to The Independent:
“Bitcoin’s energy consumption has more than quadrupled since. The beginning of its last peak in 2017 and it is set to get worse. Because energy inefficiency is built into Bitcoin’s DNA”.
+Cardano can host assets without needing smart contracts:
The Mary hard fork which took place on the 1st of March last year, finally made Cardano a multi-layered blockchain (delivering one of their primary promises).
But also, as equally interesting. It gave the platform the ability to host other assets on the Cardano blockchain from other blockchains and custom tokens. Without needing to create smart contracts (like Ethereum requires), and no need to customize code to do it.
This upgrade likely drastically increased the price of Cardano in early March, bringing it to its current valuation.
+Further upgrades are coming very soon:
Aside from the Mary hard fork. The Cardano team is planning on completing their Goguen update at some point. A step towards its completion was the release of the Alonzo Hard Fork in September 2021. The upgrade finally allowed developers to create and deploy smart contracts on the network.
Conclusion: Is Cardano a Good Investment?
Yes, despite all the criticism, Cardano is likely a good investment. In fact, It is more than a good investment. It currently ranks sixth by market capitalization, as reported by CoinMarketCap. Since the total number of tokens is limited, the risk of inflation is also limited as the demand for the coin continues to grow.
There are also many technical advantages, such as Cardano’s proposed decentralized nature and layered architecture. That makes a good Investing Cardano. That said, to answer if ADA is worth holding, we should consider a wide range of factors and potential risks.
Cardano’s success also depends on the number of smart contracts and dApps it would be able to host. While its peer-reviewed nature makes it secure. There is a lot to develop further. It can only be said that ADA has a good chance to get. It’s a fair share in the crypto investment sector.
It is moving upwards and has been steadily occupying CoinMarketCap’s Top 10 in terms of market cap and trading volume, at points reaching third-largest in early 2021.
Cardano’s low entry level makes it an attractive investment for traders and beginners, as well as long-term investors. ADA is also the right choice for people who simply want to diversify their portfolios.
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