In the crypto world, Cardano could be a real winner

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Image source: Getty Images.

Indeed, when investors see cryptocurrencies trading for a few dollars or less, it’s hard to imagine that they can reach the heights of Bitcoin, the world’s leading cryptocurrency. It’s a pretty impressive growth path that is difficult to replicate. Given that Bitcoin started off at pennies and now sits around $ 60,000 a coin, no one can deny the possibility that other tokens will follow suit in the long term.

Here I will be discussing Cardano (CRYPTO: ADA) – a crypto game that I think has huge long term potential. Let’s see why.

Caradano was created for companies

Cardano was created by Charles Hoskinson – co-founder of Ethereum – one of the biggest players in the crypto market. In essence, Cardano is a blockchain with its own coin called ADA. This network can manage smart contracts or self-executing contracts when certain conditions are met. As the building blocks of the Decentralized Finance (DeFi) space, smart contracts are widely seen as the future of crypto. As a result, there are many who believe that Cardano could be an “Ethereum killer” on this basis.

There are other reasons some investors think this is the case. Namely, Cardano is among the fastest large-cap cryptocurrencies in terms of transaction speed. This token is about eight times faster than Bitcoin and has a much lower fee than Ethereum right now. For those in the crypto world looking to do something as simple as transferring money, Cardano is certainly an intriguing choice right now.

Environmentally friendly attributes

However, among the main reasons that many investors consider Cardano to be one of the best crypto choices is the network’s proof of stake protocol. This means that investors can stake their crypto to validate transactions on the blockchain. Unlike Bitcoin’s proof-of-work model (which requires mining or complex mathematical calculations to perform to validate transactions), Cardano’s model is much simpler.

What does it mean?

Well, on the one hand, this network uses a lot less energy. Bitcoin is currently believed to use around 0.5% of total global electricity consumption. For crypto aficionados worried about the future implications of this growth, Cardano is certainly an intriguing choice.

At the end of the line

The crypto market is certainly risky. Investors who choose a token, or a group of tokens for that matter, should be aware of these risks.

However, investors seeking growth may want to look beyond Bitcoin and Ethereum for other projects such as Cardano. Indeed, Cardano remains a top cryptocurrency on my watch list right now for the aforementioned reasons.

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