If youre more of an observer than an investor in cryptocurrencies, Cardano(CCC:ADA-USD) may seem easy to dismiss as just another altcoin. If thats the case, then one of the best things that investors can say about Cardano at the time of this writing is that its not Bitcoin(CCC:BTC-USD).
Source: Grey82 / Shutterstock.com
As the number of altcoins has expanded, Cardano faces a marketing problem. If Bitcoin is the gold of digital currency and Ethereum(CCC:ETH-USD) is the silver, then each altcoin is competing with the other to prove its utility in the crypto ecosystem.
In my opinion, thisis a reason that digital currency has a reputation as a collectible more than a currency. If price is the only thing thatnovice investorshave tofocus on,thenitstough for any altcoin to stand out.
This is amplified by the fact that many altcoins have a price that correlates closely with Bitcoin. Cardano does not. And with Bitcoin dropping nearly 50% from its record high, thats been bullish for investors in ADA the native altcoin of the Cardano blockchain.
However, Cardano looks to offer its owners real innovation that even novice owners can explain to their friends. Andthatswhyitsan altcoin that may be able to stake out a meaningful position in the altcoin universe.
To be fair, this blockchain network has never tried to be like Bitcoin. For the uninitiated, it shares more in common with Ethereum.
In that sense, Cardano has always had an advantage. With its emphasis onsmart contracts, it has been position as the next, nimbler version of Ethereum. One way it does this is by using a Proof of Stake (POS) mining protocol which holds that a person can mine or validate block transactions according to how many coins they hold.
POS addresses some of the environmental concerns of mining Bitcoin. However, what I like about the protocol is that it gives Cardano owners a reason beyond price to buy the coin. Cardano isnt the only altcoin to feature proof of stake, but its one of only a few. That scarcity may not last forever, but for crypto traders living in the now,itsa nice benefit.
In early June,Nervos Network(CCC:CKB-USD) and Cardano took what may be the first step to create auniversal public network for cryptocurrency. Nervos is an open-source blockchain ecosystem and collection of protocols. The project, which is named Force Bridge, will allows two important kinds of transactions.
First, it will allow users to interchangeably buy and sell the Nervos or Cardano native currencies (CKB and ADA). Second, it will allow users to create wrapped tokens across both chains.
It remains to be seen if this will make owning Cardano more valuable. It may not make it a true medium of exchange, but it does add more utility to the digital currency.
My reasoning may seem too simplistic for more experienced crypto investors. But if youre on the outside of the crypto sphere and still hesitant to buy Cardano, I suggest you read whatInvestorPlace contributor Nicolas Chahine wrote about ADA. When you begin to look at altcoins in terms of precious metals rather than currencies, the case for Cardano becomesclearer.
Im not convinced that every altcoin has, or should have, a future. Thats a question that crypto investors will decide. But it appears that Cardano has one of the more compelling altcoin stories out there. By starting the conversation on what an internet of blockchains might look like, its attempting to provide a solution to one of the nagging issues that prevents widespread adoption of cryptocurrencies.
With that in mind, Cardano would appear to be not just an effective hedge against Ethereum but also, perhaps, thecoin that will change the wayinvestors think about cryptocurrencies.
On the date of publication, ChrisMarkochdid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.
Read the original post:
Meaningful Innovation Makes Cardano an Altcoin to Watch - InvestorPlace
- Top Trader Is Buying the Big Dip on These 5 Altcoins - The Daily Hodl - June 10th, 2021
- Investors With Deep Pockets Quietly Buying This Altcoin, According to Coin Bureau - The Daily Hodl - June 8th, 2021
- Here Are Five Undervalued Altcoins To Buy in June: Altcoin Daily - The Daily Hodl - June 8th, 2021
- Ethereum Classic Has Its Strengths, But Consider Other Altcoins Instead - InvestorPlace - June 8th, 2021
- Altcoins soar while Bitcoin and Ethereum price stall near key levels - Cointelegraph - May 27th, 2021
- The Crypto Crash Is Here. Here's Why It's Time to Buy the Altcoin Dip. - Investorplace.com - May 27th, 2021
- The Five Best Altcoins to Invest in and Start Building a Crypto Fortune - Investment U - May 27th, 2021
- Heres How High Bitcoin Could Skyrocket After Severe Correction, According to Altcoin Daily - The Daily Hodl - May 27th, 2021
- Cardano Faces an Uphill Battle to Change the Finance World - InvestorPlace - May 27th, 2021
- These three cryptocurrencies weathered the storm as Bitcoin plunged - Cointelegraph - May 27th, 2021
- Younger investors are calling bitcoin 'boomer coin'here's why they prefer dogecoin and other altcoins - CNBC - May 20th, 2021
- Altcoins Follow Bitcoin to the Abyss, XRP Lost 25% - Finance Magnates - May 20th, 2021
- Top Trader Says Hes Bullish on Two Underrated Altcoins, Unveils Big End of Year Target for Bitcoin - The Daily Hodl - May 20th, 2021
- Altcoins Take The Reins After Bitcoin Market Dominance Hits Three Year Low - Benzinga - May 20th, 2021
- Altcoin Season's Outer Limits: Ether Outpacing Bitcoin Further Than in 2017 - CoinDesk - CoinDesk - May 16th, 2021
- South Korean Banking Association Concerned Over Surge of the Altcoin Trading Frenzy Altcoins Bitcoin News - Bitcoin News - May 16th, 2021
- EOS and YFI lead altcoins higher as Bitcoin and Ether bounce from swing lows - Cointelegraph - May 16th, 2021
- South Korea's banking association alarmed by altcoin trading mania - Cointelegraph - May 16th, 2021
- Analyst on Cardano: if an altcoin cant do this theres no point in holding it - AMBCrypto News - May 16th, 2021
- Another Meme Token Gains Traction in Altcoin Underground - BeInCrypto - May 16th, 2021
- What is SafeMoon? Price, where to buy, news and more - Tom's Guide - May 16th, 2021
- Banks association raises red flag over growing altcoin influence - The Korea Herald - May 14th, 2021
- Heres How To Find 100x Altcoins, According to Analyst Alex Saunders - The Daily Hodl - May 14th, 2021
- Dogecoin, Ethereum, XRP, LTC: What the surge in altcoin interest means to Binance and other exchanges? - AMBCrypto News - May 14th, 2021
- How Will the Rest of 2021 Look for Altcoins? - NewsBTC - May 14th, 2021
- Ethereum price imminent rise to $5,000 could trigger the altcoin season - Coingape - May 14th, 2021
- 7 Non-Bitcoin Cryptocurrencies to Buy Now - InvestorPlace - May 1st, 2021
- XRP and 5 Untapped Altcoins Gearing Up for Massive Bull Rallies, Says High-Profile Trader - The Daily Hodl - May 1st, 2021
- Altcoins rally as analyst warns Bitcoin is in the '$50K $60K twilight zone' - Cointelegraph - April 27th, 2021
- Altcoin Market Shifts to Recovery Mode! Traders Focus on BNB, REN, and MATIC! - Coinpedia Fintech News - April 27th, 2021
- Applied Blockchain, Inc. Launches Ethereum and Altcoin Mining Business via Strategic Partnership with Industry Leaders SparkPool and GMR - PRNewswire - April 22nd, 2021
- These Crypto Assets Could Surge 100x, According to Altcoin Daily - The Daily Hodl - April 22nd, 2021
- JPMorgan 'Worried' Over Bitcoin Price As Altcoins Leave BTC in the Dust - Cryptonews - April 22nd, 2021
- How long is the altcoin rally going to last? - FXStreet - April 22nd, 2021
- Dogecoin (DOGE) and Maker (MKR) soar as the altcoin market cap tops $1T - Cointelegraph - April 22nd, 2021
- Analyst Who Called Crypto Crash Says Five Altcoins Are Set To Outshine Bitcoin - The Daily Hodl - April 22nd, 2021
- Why Ethereums price is key to the altcoin rally - AMBCrypto News - April 22nd, 2021
- Can Bitcoin (BTC) follow the rise of the altcoins? - FXStreet - April 22nd, 2021
- Top Trader Scott Melker Analyzes Ethereum, XRP and Litecoin, Predicts Massive Altcoin Breakout Against Bitcoin - The Daily Hodl - April 15th, 2021
- Crypto Trader Ben Armstrong Is Buying $100,000 Worth of This Red-Hot Altcoin - The Daily Hodl - April 15th, 2021
- The EOS Cryptocurrency Is the Top Altcoin to Watch Now - Money Morning - April 15th, 2021
- Balancer (BAL) Price Predictions: Where Will the Balancer Crypto Go After Altcoin Frenzy? - InvestorPlace - April 15th, 2021
- These Three Overlooked Altcoins Are Set To Erupt, According to Top Analyst - The Daily Hodl - April 15th, 2021
- Early Bitcoin and Ethereum Whale Says Hes Bullish on This Obscure Altcoin - The Daily Hodl - April 15th, 2021
- Not a cheaper Bitcoin Bitcoin Gold soars 173% as traders may be buying the wrong BTG - Cointelegraph - April 15th, 2021
- Altcoin season in full effect as Ethereum, Tezos and Ripple shine - Stockhead - April 8th, 2021
- Here Are the Top 8 Crypto Assets Primed To Soar Higher, According to Altcoin Daily - The Daily Hodl - April 8th, 2021
- Litecoin (LTC) Price Predictions: Where Will LTC Go After Altcoin Rally? - InvestorPlace - April 8th, 2021
- The Altcoin Supercycle of 2021 Has Arrived, Says Nicholas Merten Here Are the 5 Assets on His Radar - The Daily Hodl - April 8th, 2021
- Crypto Influencer Names 7 Altcoins That Could Outperform in Current Bull Cycle - CryptoGlobe - April 8th, 2021
- Crypto Analyst Austin Arnold Says These Are the Six Best Altcoins to Buy on Coinbase - CryptoGlobe - April 8th, 2021
- 12 Altcoins Have Massive Potential To Erupt in April, According to Crypto Trader Austin Arnold - The Daily Hodl - April 2nd, 2021
- Here Are the Top Altcoins To Buy As New Month Arrives, According to Crypto Trader Lark Davis - The Daily Hodl - April 2nd, 2021
- These 6 Altcoins Are Gearing Up To Ignite Massive Moves, According to Top Trader - The Daily Hodl - April 2nd, 2021
- Which altcoins can grow faster than Bitcoin (BTC) after the correction? - FXStreet - April 2nd, 2021
- Crypto Whale Says Hes Loading Up on 9 Altcoins, Predicts New Bitcoin All-Time High Imminent - The Daily Hodl - April 2nd, 2021
- This Under-the-Radar Altcoin Just Burst Into the Top 20 After 560% Gains in Three Months - The Daily Hodl - April 2nd, 2021
- Altcoins Of The Week: ANKR, DENT, BTMX - BeInCrypto - April 2nd, 2021
- Three Virtually Unknown Altcoins Are Ready To Erupt, According to Crypto Trader Tyler Swope - The Daily Hodl - April 2nd, 2021
- Altcoin Season Belongs to DeFi and Web 3.0 - CoinDesk - CoinDesk - March 27th, 2021
- Crypto Trader Ben Armstrong Reveals His $10 Million Bitcoin and Altcoin Portfolio - The Daily Hodl - March 27th, 2021
- Coin Bureau: Dont Miss This Undervalued Altcoin - CryptoGlobe - March 27th, 2021
- This Low Cap Crypto Asset Could Be the Most Undervalued Altcoin on the Market, According to Coin Bureau - The Daily Hodl - March 27th, 2021
- Crypto Trader Tyler Swope Says Hes Spotted the Most Undervalued Altcoin on the Market - The Daily Hodl - March 27th, 2021
- These three altcoins outperformed Bitcoin in March and look primed for further gains - FXStreet - March 27th, 2021
- Crypto Trader Lark Davis Says Hes Investing in This Brand New Altcoin - The Daily Hodl - March 27th, 2021
- The Intriguing Investment Case to Own Stellar Lumens Today - InvestorPlace - March 27th, 2021
- Strong HODLers are buying the Bitcoin, altcoin dip; whats the impact? - AMBCrypto News - March 27th, 2021
- Swirl Cash on BSC Is the New Altcoin to Shoot up, Predicts Analyst - Coinpedia Fintech News - March 27th, 2021
- PundiX (NPXS) surges 130% in two days: What's driving the rally? - Cointelegraph - March 27th, 2021
- Why altcoins like YFI, ADA, DOT, EOS are in the buy zone? - AMBCrypto News - March 27th, 2021
- Top Analyst Reveals Biggest Altcoin Bag, Names Five Crypto Assets Poised To Erupt - The Daily Hodl - March 12th, 2021
- Five Crypto Projects Are Going Mainstream This Month, Says Altcoin Dailys Austin Arnold - The Daily Hodl - March 12th, 2021
- Crypto Whale Says Three Altcoins Ready To Surge After Bitcoins Big Breakout - The Daily Hodl - March 12th, 2021
- Top Trader Expects Massive Altcoin Rally This Month Here Are His Top 5 Picks - The Daily Hodl - March 12th, 2021
- Will there be a further drop in the altcoin rally? - AMBCrypto News - March 12th, 2021
- Here Are the Top Small-Cap Altcoins That Will Beat the Market, According to Crypto Trader Tyler Swope - The Daily Hodl - March 12th, 2021
- Altcoin season alert! Could Ethereum be driving it again? - AMBCrypto News - March 12th, 2021
- Top 7 Altcoins That are Poised to Outperform Bitcoin - Coinpedia Fintech News - March 12th, 2021
- Peter Brandt predicts Litecoin (LTC) is the next altcoin to see a price surge - Invezz - March 12th, 2021