Why I’m keeping an eye on Cardano

This article is obviously going to be biased. I am currently holding about 40% of my crypto holdings in $ADA and the other 60% in $BTC.

Don’t kill me for not holding any $ETH. I have my own reservations which I may discuss in another article.

$ADA has been on a downtrend the past few months with a drop of more than 50% from its ATH. To some, this might signal a bearish trend for the coin. On the other hand, I have been continuously buying the dip as the coin trends downwards to $1.5 with some even speculating that it might drop further to $1.3.

This is especially concerning as other coins are trending upwards like $ETH which is less than 5% from its ATH.

So despite the bearish trend and the FUD that has been going around the coin, why am I still buying the dip when it keeps on dipping?

Cardano has strong fundamentals

Unlike other coins like Shiba Inu that promises to moon and make everyone billionaires or even when compared to other blue-chip coins like $ETH, $ADA has strong fundamentals.

Cardano is based on peer-reviewed research which might be one of the reasons why it is taking so long to develop its technology.

However, this ensures that whatever products are being developed are based on the agreement of academics and constantly reviewed to ensure sustainability, safety and scalability.

This is unlike $ETH that has been facing bugs and other problems in the code due to its open-source community that encourages quick and fast development.

“However, Ethereum’s system has also been plagued with several bugs in its existence, some of which have caused investors dearly, like the DAO bug in 2016 that caused $60 million worth of ETH to be stolen. In fact, Ethereum continues to see problems within its code even today, the most recent of which was when the network suddenly split into two separate chains last August due to another exploit.”

— Coinmarketcap

Slow but Steady

Compared to other coins, $ADA has been slow but its development has been steady. I believe that this ensures the stability of the blockchain and prevents any mistakes from happening.

With the recent Alonzo upgrade, smart contracts are finally in the Cardano ecosystem. Despite lagging behind other coins in its implementation of smart contracts, it is a start.

Furthermore, with Cardano using an already functioning Proof-of-Stake (PoS) model compared to $ETH’s Proof-of-Work (PoW) model, I believe $ADA has the upper hand. Buterin still promises an ETH2.0 which I doubt will come any time soon. It isn’t the first time the release has been postponed.

Though I have to admit that the Cardano ecosystem is not as battle-tested as $ETH, which might raise some issues in the future, who knows?

Currently, dAPPs are slowly being built in the ecosystem which might finally introduce some use-cases for the coin.

Also, Charles Hoskinson, the founder of Cardano has started publicizing the adoption of Cardano to African countries in his tour in late 2021.

I believe this has huge importance for the coin. Though it is just the beginning, such campaigns will help to establish a presence in the continent that is economically rapidly developing.

Adoption of Cardano’s technologies in the future in the continent can further promote the use of $ADA.

Cryptocurrency is beyond ‘Mooning’

It is easy to think that cryptocurrency can make anyone rich especially when you hear so many stories of how 20+-year-olds are making millions by buying small market cap coins in the early stages and selling them at the top.

Coins like Shiba Inu, Floki Inu and Dogecoin are a few culprits that I feel have tainted the name of cryptocurrency. With no long-term use-cases other than NFTs and staking, and built on hype, it might not last the test of time.

We have to remember that cryptocurrencies are beyond making money but instead it is an investment for the future. The development of $BTC started off to provide an alternative financial ecosystem that is independent of any banks, governments and giant institutions that can use the money to control the population.

Unlimited printing in the name of quantitative easing which leads to the depreciation in the value of fiat currencies will cause problems in the future.

Cryptocurrencies are here to solve that problem and provide an alternate future.

Though it would be nice to get rich off of cryptocurrencies, we should also remember the fundamental reason why they exist in the first place.

I believe $ADA will be one of those coins that will stand the test of time.

All of these are just of my own opinions and not financial advice.

I will continue to buy $ADA as long as the fundamentals remain clear and the direction remains certain. It may continue to be bearish moving forward but I believe that with the reasons I’ve indicated above, it has a future in the crypto ecosystem.