It seems everyone has a cryptocurrency project underway. There are thousands of crypto coins and tokens and all of them can’t be valuable.
Some coins are scams, others are pump-and-dump (or rugpull) schemes. Others are fan tokens that have no value outside a particular ecosystem. All these are shitcoins.
But is Cardano one of them?
Is ADA a Shitcoin?
Cardano’s ADA is anything but a shitcoin. Here are four reasons for this:
1. Peer-Review and Evidence-Based Design
Cardano is the first cryptocurrency in its class to use peer-reviewed research and an evidence-based design to build a secure decentralized blockchain and coin.
The team behind Cardano conducted deep research and used peer-reviewed academic research to design and deploy its technology.
2. Reputable Founders
The individuals and organizations behind Cardano aren’t new to the world of cryptocurrency. Charles Hoskinson, a co-founder of Cardano and IOHK, was also a co-founder of Ethereum.
Besides that, Cardano is the child of three major corporations: IOHK, EMURGO, and the Cardano Foundation.
Each organization plays a crucial role in managing the Cardano ecosystem. Here’s how they work:
- IOHK makes cryptocurrencies and blockchains in academia, businesses, or governments.
- EMURGO is a Cardano money-making side that supports and helps fuse institutions and businesses into the blockchain system.
- Cardano Foundation inspects and follows up on the progress or growth in the Cardano ecosystem.
3. Attempts to Solve the Crypto Trilemma faced by Bitcoin and Ethereum.
Cardano isn’t just an alternative coin to Bitcoin and Ethereum. It attempts to solve the trilemma of scalability, interoperability, and sustainability.
The ADA’s unique peer-reviewed and research-based approach, coupled with innovative solutions provided by the Ouroboros blockchain, make Cardano a viable alternative to all major crypto coins.
4. Massive Community of Users
Cardano has become one of the fastest-growing crypto projects worldwide. It has a massive following of users and developers. In 2022, the Cardano community is still expected to keep increasing.
For example, as I write this, there are way more people interested in Cardano than Ethereum, its competitor.
Reddit statistics show that in 2021 alone, the r/Cardano subreddit grew by over 625%, from 95,000 to 675,000 subscribers. Although Ethereum also grew, its subreddit r/Ethereum only managed a 228% jump over the past year.
Supports Layer 2 Functionality
Cardano supports layer two functionality, which allows you to scale the blockchain and increase transactional throughput. Besides that, Cardano uses the Ouroboros blockchain, which also reduces carbon emissions while still supporting transparency, decentralization, and security.
What are Shitcoins?
Shitcoins are alternative digital coins that hold little or no value. They also don’t offer any solution or solve any prevailing problem.
Many shitcoins are not viable and offer no valuable gains for long-term holding.
To single out a shitcoin, observe its behaviors after launch. Shitcoins spike in their uptake, but with little price change. In most cases, any prices are because investors only come in for short gains.
Shitcoins make bad investments because their valuation is purely speculation.
Also read: Is TRX Vaporware?
What is Cardano Used For?
Cardano’s native currency, ADA, works like other cryptocurrencies. You can use it for transactions, pay for items, services, and trade.
That isn’t the only use for Cardano. Cardano can also serve as an alternative solution for layer 2 functionality to solve the blockchain trilemma.
Also read: Is Cardano More Decentralized Than Ethereum?
Why is Cardano So Popular?
Cardano is quite popular for several reasons:
Cardano Is Programmable
Cardano can self-execute programs and supports smart contracts. That means you can build solutions like decentralized apps (dApps) and decentralized exchanges (DEXes) on their ecosystem.
Cardano Is Eco-friendly
Cardano uses a Proof of Stake (PoS) consensus mechanism that gives it an energy efficiency advantage over Bitcoin and Ethereum, which use Proof of Work (PoW).
Proof of Stake doesn’t require you to use heavy computational power to secure the network and mine new blocks. For this reason, Cardano is energy-efficient.
Cardano Is Faster than Alternative Coins.
Cardano can process up to 250 transactions per second, which is much faster than Ethereum’s 30 TPS and Bitcoin’s 5 TPS.
That isn’t all. Cardano intends to improve its network and increase transactions to upwards of 1,000,000 TPS in the future. Cardano is still faster than most top crypto coins, even without that capability.
Cardano Is Young and Growing.
Cardano is still young, with the potential to grow beyond its current pricing. As a young coin, people adopt it much faster, and as programmers learn about it, they can build solutions on top of its infrastructure more easily.
This growth also comes with low coin pricing, which allows many participants to adopt it as it grows.
Also read: Does Cardano Have A Working Product?
Is Cardano Better than Ethereum?
Although Cardano uses more innovations than Ethereum, it’s still difficult to call it better than Ethereum.
Here are several reasons for that:
Ethereum Is Older
This has two advantages. Ethereum has a long record of stability and security, something that has been tested before.
Besides that, a larger number of decentralized solutions are built on the Ethereum ecosystem, and many organizations find it easier to adopt Ethereum.
However, Cardano shows promise with its innovative solutions. It has a faster and more secure network. It also supports layer two functionality like Ethereum but with lower gas fees.
Ethereum 2.0 Is Coming
Ethereum 2.0 is already under implementation and will become mainstream. It aims to solve the problems that Ethereum currently faces.
That means ETH 2.0 will be faster, have higher transaction throughput, cheaper gas fees, and more energy efficiency. By solving its problems, Ethereum makes itself a top contender again.
Ethereum Has Higher Adoption
There are more people invested in Ethereum than are in Cardano. Although this isn’t a huge problem, more people will stick with Ethereum over Cardano.
How Long has Cardano Been Out?
Cardano has been out for just about five years. Charles Hoskinson first conceptualized Cardano back in 2015 before launching it in 2017.
Is ADA the Next Bitcoin?
Unless a significant shift occurs in the world of crypto, ADA is unlikely to be the next bitcoin or Ethereum.
However, Cardano is one of the best alternatives, only rivaled by Solana, Algorand, and Polkadot.
Several aspects like improved TPS, lower transaction fees, and eco-friendliness give ADA a chance to make a name for itself, but not big enough to topple Bitcoin.
Does Cardano Have a Limited Supply?
Yes. Cardano caps out at 45,000,000,000 ADA. After Cardano hits this cap, the only fluctuating factor will be the coins’ value.
How Many Cardano Exist?
At the time of this writing, there are 33,626,446,501 ADA in circulation. That means an estimated 75% of the digital currency is already in circulation.
Cardano isn’t a shitcoin. It has strong fundamentals, a unique value proposition and useful functionality. Its quite popular because its still young and adaptable. Although its a valuable coin in a unique ecosystem, it has no chance of toppling either Ethereum or Bitcoin.