Cardano (ADA) has been the hot new crypto among investors and everyone is asking the question of Is Cardano ADA A Buy Or Pass? I am going to talk about what the token is and why people are excited to own some. I will also tell you how much I have and if I will be frequently investing more of my money into ADA. If you find this article interesting then consider sending it to a friend that would also enjoy the read. I am going to be adding a section on cryptocurrency to the website, so stay tuned for that.
What is Cardano (ADA)
Cardano (ADA) is a blockchain platform built on a proof-of-stake consensus protocol. It uses Ouroboros that validates transactions without energy cost being high. I know that may not sound understandable, so below is a definition from a Redditor.
“Alright so cardano can do exactly what bitcoin does. A decentralized immutable ledger, making it a currency right.
Add on proof of stake. Now you don’t need expensive hardware and crazy energy usage to mine. Anyone who owns ada can stake it and earn rewards. Think of it as compounding interest.
Add on another layer. Smart contracts. Pretty much re-engineering the financial system.
Now all of this development has been done through peer reviewed papers with the best cryptographers in the world. Making it the most thorough project on the market in my opinion.” (source)
Or for a more simpler definition of Cardano, below is what the founder Charles Hoskinson say about ADA.
Cardano is an open platform that seeks to provide economic identity to the billions who lack it by providing decentralized applications to manage identity, value and governanceCharles Hoskinson
I should also note that Charles Hoskinson is the co-founder of Ethereum which means he has experience in what it takes to have a token make a change in the financial world. The aim? As said above, through decentralization. What does that mean exactly? below is a Redditor that paints a good picture of decentralization.
…. I don’t think I’ll be able to convince you that cryptocurrencies are not incredibly complex. They are. However, a good analogy is one of the most powerful tools in education. It is a loaded question, but we can break this down into manageable pieces…I think!
Imagine that you get an allowance for doing chores. Typically, that allowance comes from your parents. The promise is that if you do all your chores, you receive your allowance. The problem is that the decision about whether or not you get paid for doing your chores is made by one or two individuals, let’s call them the “parental units”. If, for any reason at all, the parental units decide you did not complete your chores, you don’t get paid! Their decision could be completely subjective. There is nothing you can do about this. You can try to make your case to the parental units that you’ve done what’s been asked. But, ultimately, if the units decide to withhold the payment, they can do so. You have no legal recourse…you are a 5 year old.
Now, let’s imagine that there’s a worldwide governing body with an established and specific set of standards about chore completion. Not only does this “governing body” control the standards, but it also controls the money! It might say, “If there are no more toys on the floor and the bed is made so there are no wrinkles in the sheets, you will get paid.” When those tasks are verified as completed, you get paid! The verification happens when the entire governing body looks at what you did and can all statistically agree that what you did satisfies the requirements. Now, extend that idea away from you and consider that all children all over the world will all verifiably be held to these same standards. The control of who gets paid, who has to pay, and how much total money is out there is not in the control of a few, but the very many individuals that make up this governing body.
The idea is that the record keeping of transactions and the macroeconomic decision making power is taken out of the hand of ONE OR FEW subjective individuals and put into the hands of many individuals, or perhaps even an objective set of computer code, for that matter.
Let me know if this is helpful. I’m providing this based on my current understanding. So if anybody thinks my analogy significantly breaks down somewhere, please let me know. – (Source)
The Price History of Cardano (ADA)
Below is some historical data on Cardano’s price.
|Mar 01, 2021||1.3098||1.4732||0.9931||1.1891||1.1891||129,270,155,479|
|Feb 01, 2021||0.3448||1.4767||0.3342||1.3081||1.3081||242,699,671,996|
|Jan 01, 2021||0.1814||0.3957||0.1692||0.3449||0.3449||104,785,114,023|
|Dec 01, 2020||0.1714||0.1962||0.1274||0.1814||0.1814||36,178,893,705|
|Nov 01, 2020||0.0931||0.1821||0.0880||0.1713||0.1713||33,187,119,844|
|Sep 30, 2020||0.1012||0.1124||0.0901||0.0931||0.0931||19,153,658,951|
|Aug 31, 2020||0.1226||0.1274||0.0761||0.1011||0.1011||17,388,636,644|
|Jul 31, 2020||0.1388||0.1520||0.1044||0.1227||0.1227||11,213,878,959|
|Jun 30, 2020||0.0831||0.1537||0.0825||0.1388||0.1388||12,815,245,743|
|May 31, 2020||0.0742||0.0901||0.0698||0.0831||0.0831||8,447,642,212|
|Apr 30, 2020||0.0478||0.0860||0.0450||0.0744||0.0744||6,605,129,771|
|Mar 31, 2020||0.0306||0.0543||0.0296||0.0478||0.0478||3,214,765,124|
|Mar 01, 2020||0.0475||0.0523||0.0191||0.0306||0.0306||3,151,735,350|
|Feb 01, 2020||0.0538||0.0721||0.0465||0.0475||0.0475||4,811,864,912|
|Jan 01, 2020||0.0328||0.0573||0.0324||0.0538||0.0538||2,395,824,095|
|Dec 01, 2019||0.0404||0.0404||0.0309||0.0328||0.0328||1,113,717,135|
|Nov 01, 2019||0.0416||0.0467||0.0333||0.0404||0.0404||2,066,915,883|
|Sep 30, 2019||0.0389||0.0446||0.0358||0.0416||0.0416||1,711,709,811|
|Aug 31, 2019||0.0450||0.0549||0.0356||0.0389||0.0389||1,997,271,767|
|Jul 31, 2019||0.0602||0.0603||0.0434||0.0450||0.0450||1,604,194,409|
|Jun 30, 2019||0.0821||0.0859||0.0501||0.0602||0.0602||2,882,192,253|
|May 31, 2019||0.0895||0.1069||0.0776||0.0821||0.0821||5,382,517,625|
|Apr 30, 2019||0.0703||0.1004||0.0591||0.0894||0.0894||3,833,326,637|
|Mar 31, 2019||0.0697||0.1000||0.0642||0.0703||0.0703||3,134,322,049|
|Mar 01, 2019||0.0431||0.0737||0.0398||0.0697||0.0697||1,661,006,752|
|Feb 01, 2019||0.0384||0.0505||0.0361||0.0431||0.0431||571,352,412|
|Jan 01, 2019||0.0410||0.0546||0.0370||0.0384||0.0384||865,566,271|
|Dec 01, 2018||0.0390||0.0493||0.0274||0.0411||0.0411||902,023,730|
|Nov 01, 2018||0.0697||0.0813||0.0328||0.0389||0.0389||960,158,511|
|Sep 30, 2018||0.0853||0.0882||0.0679||0.0697||0.0697||907,604,000|
|Aug 31, 2018||0.1019||0.1089||0.0617||0.0852||0.0852||2,231,358,800|
|Jul 31, 2018||0.1431||0.1450||0.0870||0.1022||0.1022||1,976,704,700|
|Jun 30, 2018||0.1383||0.1929||0.1232||0.1433||0.1433||3,252,586,700|
|May 31, 2018||0.2245||0.2368||0.1147||0.1377||0.1377||2,424,286,712|
|Apr 30, 2018||0.3430||0.3897||0.1740||0.2252||0.2252||4,809,903,016|
|Mar 31, 2018||0.1566||0.3879||0.1413||0.3433||0.3433||7,320,876,484|
|Mar 01, 2018||0.3120||0.3177||0.1270||0.1559||0.1559||4,703,829,784|
|Feb 01, 2018||0.5159||0.5353||0.2665||0.3126||0.3126||12,792,129,936|
|Jan 01, 2018||0.7188||1.3272||0.4406||0.5193||0.5193||17,091,618,144|
|Dec 01, 2017||0.1166||0.7774||0.0991||0.7197||0.7197||5,302,134,228|
|Nov 01, 2017||0.0291||0.1469||0.0182||0.1199||0.1199||832,985,508|
|Sep 30, 2017||0.0217||0.0383||0.0174||0.0304||0.0304||304,087,350|
As you can see that Cardano is still new on the scene, but the growth is good in terms of the future for this currency. The max supply that is available for ADA is 45,000,000,000. Right now the circulating supply is 31,948,309,441 ADA. This means that it has hit 71% of its max life (how many tokens are left).
Cardano Price Prediction For 2021
Now below is numbers that other people have been predicting for the price of ADA in 2021. from the data gathered, we will look at what most are thinking the price outcome will be.
Now I just searched and gathered 20 price predictions that other people have said on the internet. Now if we do a little math, the number that occurs the most (the mode) is $5. In my opinion, I can see ADA most definitely reaching $5, but to be conservative, I’d say $2-$3. Now a lot of you might be wondering “could this token jump to $100 within a year” and to answer that, Im going to attach a photo of someone’s comment to the future price prediction of ADA.
Below is another comment from another Redditor that gave a good point on how Cardano’s price will change for the short and long term.
The price will come with the appreciation of the market and the product. To say that you will not appreciate for certain record values, nobody knows. If Cardano doesn’t value insane values, then can we say that no one will and why? Because in terms of technology and future projection and potential in the short, medium and long term, nobody, but even nobody in this space presents the growth potential that Cardano has. That is why discussing the price, whether or not it will reach a certain value is something that does not make sense.
Certainty is one, it will grow in terms of price appreciation. It is undoubtedly a project on the rise with the greatest potential of space in terms of growth. You cannot compare the marketcap of bitcoin or another blockchain and make parallelism because that is not indicative of anything, because they are different technologies, different approaches and different potentials. In terms of price appreciation and given the evolution of the Cardano project, there is only one path and one certainty: we are at the beginning and we are in the world of blockchain, anything can happen, and the way things are, who will doubt the appreciation that coming, either in the short time or in the long term? How far is it going? Nobody knows, what we know is that there will be valuation associated with the release of technology and scientific advancement, proposing and executing in a proven, safe, effective and efficient way what nobody has achieved in space, bringing confidence in the adoption and investment.
The future will undoubtedly be bright and epic for Cardano. Only 2% to 3% of the wealth circulating in the world is associated with blockchain. Are you aware of how low these values are? Now imagine the following: Of the total projects, which one does it offer, the quality, safety, characteristics and potential that Cardano has in the short, medium and long term, with the roadmap it has and what will it still deliver? Now tell me, where will Cardano get to? For me the sky is the limit, and nobody knows where it can go, I just know what is coming will leave everyone with their mouths open – (Source)
Is Cardano ADA A Buy Or Pass For New Investors?
*Everything I say is based on opinion*
I think that new investors wanting to expand beyond just stocks should look into crypto as another path for investing. A lot of coins that are on the market are not just for pump and dumps but are trying to make a change in the blockchain world. ADA is one of those tokens that to me is a good long-term hold. Even if you don’t want to understand crypto (which you should) I think that new investors should put some money into cryptocurrency.
If you want to start buying crypto, I suggest going with Coinbase.
How Much ADA Do I Have?
I currently have $44.13 invested in Cardano through Coinbase. That equates to 39.743049 ADA. I am going to be investing more money in the next few days and will make sure to update all of you on my future holding.
I hope that everything in this article has been useful for any new investors thinking about investing money in crypto. Don’t forget to send this reading to a friend that could also benefit from the information I provided. Thanks for supporting The Finance Starter and stay tune for more articles on crypto related stuff.
Side note: In the next post, I will be talking about how I am going to be able to make 13% APY through holding cryptocurrency.