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Motley Fool Issues Rare “All In” Buy Alert
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Bitcoin has soared more than 500% over the past two years. But that pales compared to the cryptocurrency’s gain over time. Since its launch, Bitcoin has climbed more than 3,300%. If you missed out on getting in early on the world’s biggest cryptocurrency, you may be regretting it right now — but don’t.
Some newer players also offer great potential. And it’s not too late to invest in them early in their story. In fact, some have already joined the ranks of top cryptocurrencies. A perfect example is Cardano (ADA 1.92%). This young digital asset already is the world’s eighth biggest by market value. Here’s why Cardano is a good choice to buy now.
First, a bit of background on Cardano. It’s a blockchain with a native token called ADA. Charles Hoskinson, a co-founder of crypto giant Ethereum, also is a creator of Cardano. So there is a good deal of experience behind this cryptocurrency.
Another reason we can count on quality from Cardano? Any update to the system must go through peer review. While this slows things down, it may help Cardano avoid big glitches down the road.
Cardano is a work in progress. The project laid out a five-stage road map to create a truly decentralized and self-sustaining system. Work is progressing through the final stages now. A big milestone was a hard fork last fall that allowed for smart contract functionality. Next up is a hard fork that will lead to the Vasil mainnet upgrade.
The Vasil upgrade should take place around the end of July. It’s expected to bring “significant performance and capability upgrades to Cardano,” according to the blockchain’s developer. And the developer called it “Cardano’s biggest and best upgrade to date.”
This should help the platform attract more decentralized applications. Developers are also working on a scaling solution called the Hydra project. And it will increase something very important to those using blockchains for transactions: speed.
Hydra heads are off-chain ledgers that reduce congestion on the main network. Early research shows a head is able to process 1,000 transactions per second. But developers say what counts most are the following points. Hydra will be able to increase the amount of data the network can handle. And it will be able to complete a transaction almost instantly.
So could Cardano follow in Bitcoin’s footsteps and eventually soar to more than $60,000? After all, Bitcoin was trading for less than $0.01 back in 2010. Today, Cardano trades for less than $1.
Of course, it’s important to remember the number of tokens in circulation. Cardano’s current number of tokens — about 33 billion — make a $60,000 price impossible from a valuation perspective.
But Cardano still could climb considerably from today’s level. The project’s developers are carefully and progressively moving forward to make Cardano a reliable and fast blockchain player. And each step forward represents a potential catalyst for gains.
General market sentiment is weighing on cryptocurrencies today. This is a new area — and it’s still too early to say what role cryptocurrencies will play further down the road. But they do hold the potential to revolutionize the way business is done. And Cardano could be a significant player. So that’s why investors who missed out on Bitcoin may want to consider this dynamic young crypto.
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