Friday, January 21

Why Cardano has skyrocketed to # 3 in cryptocurrency market capitalization rankings


With a market capitalization of over $ 90 billion, Cardano has displaced Binance Coin and Tether as the third largest cryptocurrency after Bitcoin and Ethereum.

It has been described (along with Polkadot) as the ‘Ethereum killer’ for its alleged ability to do what Ethereum can do, only better.

As the table below shows, Cardano has made extraordinary gains for 12 months compared to most other assets, including crypto.

If you had invested R1,000 in Cardano a year ago, it would be worth more than R21,000 today, putting it multiples ahead of the returns delivered by Bitcoin, Ethereum, and the stock market.

Cardano is up 115% since the beginning of August in anticipation of a major update next month known as Alonzo, which will allow self-realizing smart contracts to be written to its blockchain (which is a detailed ledger that records and validates transactions. ).

Some are promoting Cardano as a rival to Ethereum and a platform that will revolutionize the way we transact and do business, essentially eliminating agents and intermediaries (such as banks, stock exchanges, and insurance agents).

Return after investing 1000 rand in different assets for 12 months:

Source: Revix

So what exactly is Cardano and why is there so much noise around it? We asked Brett Hope Robertson (BHR), investment analyst at Revix, to resolve some of the confusion and misunderstandings surrounding cryptocurrencies.

What is Cardano?

BHR: Cardano is a proof-of-stake blockchain platform that is designed to accommodate a large number of applications in a secure and sustainable way. Proof of Stake (PoS) is a modification of the Proof of Work (PoW) model that Bitcoin uses. Rather than relying on competing computers to mine the block, the idea behind a PoS protocol is that stake is determined by ownership of the coin supply you are betting on the network. Users who want a chance to be selected to add blocks to a PoS blockchain must stake a certain amount of the blockchain’s cryptocurrency on a special contract. The amount of coins wagered determines your chances of being selected as the next block producer. However, if users behave maliciously, they may lose their participation as punishment.

PoS is the future of blockchain technology, the key benefit is its ability to scale at high speed without using large amounts of electricity, as is the case with the original Bitcoin blockchain.

What’s interesting about Cardano is that it was started in 2015 by Charles Hoskinson, one of Ethereum’s co-founders, with the express purpose of solving some of the key issues identified with Ethereum, such as poor scalability and network congestion resulting in a high ‘gas’ rates.

How does Cardano work and what does it do?

BHR: Cardano was the first blockchain technology to be founded on peer-reviewed research and evidence-based methodologies. In September, it is supposed to be enabled for smart contract functionality. Smart contracts are pieces of computer code that allow people to securely transact in a “trustless” environment. For example, you can already borrow money at relatively low interest rates on decentralized finance applications (DeFi) using your crypto assets as collateral. No credit check by a bank clerk, no KYC (Know Your Customer) obligations, and in many cases they don’t even ask for your name.

That’s just one use of smart contracts. Think of financial and insurance products that eliminate the middle man and reduce costs, or of supply chain management, where payment for the delivery of a shipment of goods is tied to meeting certain conditions, such as the delivery of the assets of a pre. -quality determined on an agreed date.

Is there a business case behind Cardano?

BHR: There is a promise of a business case, but Cardano has yet to meet milestones such as smart contracts. That means it has yet to deliver meaningful use cases outside of being a transfer of value. The price of Cardano (ADA) is moving more by hype than by facts. If Cardano fulfills its smart contract functionality, then the price is likely justified and could reach higher levels. If not, we could see a pullback in price. The fact that it is a strong competitor to Ethereum means that its inclusion in a cryptocurrency portfolio can be justified.

Where can I buy Cardano and why should I have it?

BHR: As of Friday (August 27), Cardano can be purchased as a standalone cryptocurrency on Revix. Cardano’s launch as a standalone cryptocurrency is due to overwhelming demand from our customers.

Due to the new version, Revix offers a double promotion:

  1. If you buy Cardano with ZAR or GBP during the next week (August 27 to September 2), your purchases will be free.
  2. The first 600 new registrations on the Revix platform will receive double their initial deposit up to R500 when using the promo code: DOUBLEUP; This promotion is valid from August 17 to 31, 2021.

There are a couple of reasons you might want to buy Cardano, but the top two reasons would be that you are trying to figure out scalability and high fees in the smart contract space. Second, you are trying to solve the blockchain power consumption problem by relying on much less power to secure the network.

What else does Revix offer?

At Revix, we now offer Bitcoin, Ethereum, Uniswap, PAX Gold, USDC, and Cardano as standalone cryptocurrencies. And we offer a USDC Savings Vault, similar to a savings account.

Through Revix, you can also access your lists ‘Cipher packages’.

These packages allow you to own an equally weighted basket of the largest and, by default, most successful cryptocurrencies in the world.

The Top 10 package distributes your investment equally across the 10 largest cryptocurrencies based on market capitalization, the smart contract package distributes your investment equally among the top 5 smart contract cryptocurrencies, and the payments package distributes your investment equally among top 5 cryptocurrencies focused on payments, giving you balanced exposure to these crypto sectors.

About Revix

Revix brings simplicity, confidence and excellent customer service to the investment. Its easy-to-use online platform enables anyone to securely own the world’s top investments with just a few clicks. Revix guides new clients through the registration process to their first deposit and first investment. Once configured, most clients manage their own portfolio, but can access support from the Revix team at any time.

For more information please visit www.revix.com

This article is intended for informational purposes only. The opinions expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor is it a solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing, consider your level of experience, your investment objectives, and seek independent financial advice if necessary.

Brought to you by Revix.

Moneyweb does not endorse any product or service that is advertised in sponsored articles on our platform.


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