Portfolio strategist expects Cardano to become primary cryptocurrency alongside Bitcoin and Ether – Bitcoin News

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A portfolio strategist at U.S. financial services firm Morningstar said cardano could become a traditional cryptocurrency alongside bitcoin and ether, forming the ‘big three’ of traditional cryptocurrencies.

Strategist Believes Cardano, Ether, and Bitcoin Could Become Mainstream Cryptocurrencies

Amy Arnott, a cryptocurrency-focused portfolio strategist at Morningstar, shared her take on the regulation of crypto, ether and cardano in an interview with the Insider last week.

Noting that since many cryptocurrencies do not generate cash, Arnott said it was difficult to determine an appropriate price for them. However, she explained that Ether has a built-in price to some extent, as it is used to power decentralized financial transactions (challenge) and support non-fungible tokens (NFTs). The strategist elaborated:

The fact that Ether is being used as a utility should provide some sort of a floor price, but I’m not sure what it should be. A lot of people talk about a network effect where these currencies become more valuable as they are used and there are more interdependencies and connections.

Arnott also believes that cardano (ADA) is a promising cryptocurrency that could join bitcoin and ether to form a “big three” of mainstream cryptocurrencies. She clarified:

Cardano is similar to Ethereum in that it is a protocol that has a lot of potential technical applications. There is a lot of enthusiasm for the cardano, as well as various stablecoins.

The Morningstar strategist continued to share her perspective on institutional cryptocurrency adoption. “The interesting thing that has happened over the past year is that institutional investors have been much more willing to embrace cryptocurrencies and view them as an investment asset. As this trend continues, we will see other cryptocurrencies become more common, ”she said.

She noted that she would really like to see a diversified cryptocurrency index fund in the form of an exchange-traded fund (ETF). However, the United States Securities and Exchange Commission (SEC) has yet to approve a crypto ETF, making it “very difficult for traditional investors to gain exposure to cryptocurrencies.” Arnott was of the opinion:

Regulatory risk is a big deal – it’s what has been causing much of the volatility in recent months. If governments around the world crack down on crypto in general, or bitcoin and ether in particular, that would be a big negative.

What do you think of the Morningstar strategist’s comments? Let us know in the comments section below.

Tags in this story ada, three major consumer cryptocurrencies, bitcoin etf, bitcoin ether, Cardano, cardano bitcoin, cardano ether, cardano mainstream, crypto mainstream, cryptocurrency mainstream, ETF

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