If you invested in Ethereum back in 2015 and bought one coin at $3.00 AUD per coin, your one Ethereum coin today, (17th of August 2021) would be worth $4,500 AUD…KA-CHING! So, what does this have to do with Cardano?
Looking at Ethereum can give you some insight on the potential that Cardano has. Charles Hoskinson, who was one of the founders of Cardano, was also one of founders of Ethereum. Hoskinson left Ethereum in 2014 when he and Vitalik Buterin, a co-founder of Ethereum, could not agree on which way the project should go, resulting in Hoskinson launching Cardano in 2017. Even though they are similar projects, both being focussed on smart contracts and DAPPS (decentralized applications built on the blockchain), Cardano has taken a slower approach in building their blockchain, to be sure they are not plagued with the same problems Ethereum has had in recent times such as high transaction fees and a slowing of the network due to a large number of transactions being made at one time.
The reason I am excited about Cardano is it's smart contract feature which is due to be launched around the 12th September 2021. This is big news because Ethereum has dominated this space since 2016 but they have been inconvenienced by the problems mentioned before. Cardano on the other hand will be able to perform one million transactions per second with a fee of around 20 cents per transaction. This could see many projects leaving the Ethereum blockchain and joining Cardano, even with the ETH 2.0 upgrade. Even with this upgrade, Ethereum will only be able to manage one hundred thousand transactions per second and as for transaction fees, I really don’t think they will be able to compete with Cardano. Cardano is currently at number 3 on the coin market cap, just under Ethereum, which stands at number 2.
Unlike Ethereum, which has no capped number of tokens, Cardano has a maximum supply of 45 billion tokens, with a circulating supply of 32 billion tokens, which is always good for price action. As we have seen with Bitcoin, the less tokens that are available the more valuable they are. These projects are both great in their own way but I think with Cardano’s price being at $2.95AUD per token, this could be a great opportunity to maybe make some healthy gains in the future. I find it very hard to talk about Cardano without mentioning Ethereum, because these two projects share similarities and are in some way connected.
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