Cardano has seen a significant increase in price since the start of the year, with investors renewing interest in the cryptocurrency.
Cardano is currently the third-largest cryptocurrency, with a market cap of more than $31 billion. With more and more investors showing interest in Cardano, it would be smart to keep an eye on the cryptocurrency. It could just be the missing piece of the puzzle when it comes to your investment portfolio.
Cardano has the potential to be a millionaire-maker, considering the significant growth that the cryptocurrency is predicted to experience over the next couple of years.
Before we talk about Cardano's potential as an investment, let's take a look at what Cardano is, the factors that could make it a stellar investment, and a bit about its price history. Currently, Cardano is nearing its all-time high, and every prediction suggests that it could go even higher.
Cardano: What Is It?
Cardano is a cryptocurrency and smart contract platform like Ethereum. It is often described as a third-generation cryptocurrency that solves the scalability issues that plague first and second-generation cryptos like Bitcoin. Cardano offers better scalability through its layered architecture.
Transactions can be carried out using the platform's native currency, Cardano. Users can use it to complete transactions and send or receive funds. The platform uses cryptography to make transactions fast and secure. Cardano's blockchain is the first peer-reviewed blockchain in the world. Scientists and academics review the protocols from institutions like the Tokyo Institute of Technology and the University of Edinburgh.
Cardano was founded by Ethereum co-founder Charles Hoskinson and former Ethereum CEO Jeremy Wood. Three organizations ensure that Cardano functions without any hitches. These are
The Cardano Foundation: The Cardano Foundation oversees the development of the Cardano blockchain.
IOHK: IOHK is the organization that built Cardano and designed Ouroboros, the unique Proof-of-Stake mechanism that Cardano uses.
Emurgo: Emurgo promotes Cardano to enterprise firms and encourages the use and adoption of its technology.
Is Cardano A Millionaire Maker Investment?
Cardano has seen a significant increase in price since the start of 2021, with the cryptocurrency attracting some serious attention from investors. Several predictions forecast that Cardano will reach record-breaking prices in 2021. Let's look at how Cardano has performed since the start of the year to understand the increase in its price better.
Cardano started the year at $0.18 but rallied quickly, and within a week, it was trading at $0.32. Cardano has maintained a positive price trend since the start of the year, even though it has seen a bit of volatility. The biggest rally came for Cardano started in February when the currency jumped from $0.34 to $0.95 in less than two weeks. By February 21, the cryptocurrency had broken the $1 mark and is currently trading at $1.08.
So what do we make of Cardano? Is it a millionaire-maker investment? A lot of investors feel that there is a lot of hype around cryptocurrencies like Cardano because investors and cryptocurrency enthusiasts want to find the next big token. High-profile buyers further fuel the hype. An example of this would be Gene Simmons's announcement that he has purchased $300,000 of ADA.
However, Cardano's price rally is not only due to hype. The most important reason why Cardano could be a millionaire-maker investment is due to the rise of decentralized finance (DeFi) and the rise in opportunities in DeFi. DeFi platforms like Cardano have seen a wave of interest as more consumers and companies look for DeFi solutions and as more and more financial institutions start working on integrating cryptocurrencies into the system. The team behind Cardano feels that in the next few years, Cardano will see significant growth.
Factors That Could Make Cardano A Millionaire Maker
Several factors affect the price of Cardano, from the development team to the way it functions. These factors can go a long way in making Cardano a viable option for investors. Here are some factors that could make Cardano a millionaire-maker.
Cardano Has An Experienced Development Team
Cardano has an exceptional team backing the platform. It was founded by the co-founder of Ethereum Charles Hoskinson and former Ethereum CEO Jeremy Hood. Cardano gained significant popularity after its launch as the only peer-reviewed blockchain to ensure that there are no vulnerabilities in its protocol. Cardano's team also tested several protocols to prevent any bugs and hacks in the protocol.
Multiple Layered Architecture
This is one of the biggest advantages that Cardano has over its peers. Cardano implements a computational layer and a settlement layer, ensuring scalability and quick transactions. Cardano can also be updated without any interference in the functioning of the platform.
Cardano Is A Third-Generation Blockchain
The founders of Cardano describe it as a third-generation blockchain that solves the issues that plague the first and second generation. Cardano's cryptocurrency, ADA, is considered to be one of the more reliable currencies in the crypto space, seeing more improvement and overcoming significant challenges. Cardano is also more decentralized than Bitcoin and more scalable than Ethereum, thanks to its unique Proof-of-Stake consensus mechanism, Ouroboros.
Cardano Is An Open Source Platform
Cardano is entirely open-source. The platform's code is written in two programming languages. Haskell and Plutus. Haskell is a functional programming language and has been around since 1990. Haskell's last stable release was in 2010. Plutus is a programing language developed by the Cardano development team and is very similar to Haskell.
Superior Security
Cardano's Proof-of-Stake consensus mechanism ensures better safety than other protocols. Security in the cryptocurrency space is essential given the rise of cyber-attacks and hacker threats. Cardano has an excellent track record when implementing security features and privacy on its protocol.
Cardano Can Give Access To The Unbanked
Since Cardano is a decentralized cryptocurrency, it can give access and provide a digital identity to unbanked citizens across the world. This is true in the case of developing countries. Cardano has already initiated efforts in different parts of the world to give unbanked populations access to financial systems.
Although mostly functional in nature, these factors have a significant impact on investor sentiment and the price of Cardano.
Ouroboros: The Game Changer
Ouroboros is Cardano's Proof-of-Stake consensus mechanism. It provides the security of a Proof-of-Work consensus mechanism at a fraction of the energy it would normally require. Ouroboros guarantees the Cardano protocol's performance, integrity, and longevity through the application of cryptography, Combinatorics, and mathematical game theory.
Ouroboros divides time into epochs. The epochs are made up of slots that are fixed periods. The time range that each slot defines can be modified within the algorithm. Epochs also function in a continuous circular fashion. When one epoch ends, the next epoch comes online.
Can Cardano Become A Millionaire Maker?
Cardano is the 5th largest cryptocurrency globally by market capitalization, with a market cap of almost $30 billion. Cardano is predicted to experience significant growth in 2021 and beyond due to its technical advantages over other cryptocurrencies. Cardano's decentralized nature and its layered architecture make Cardano an enticing investment option.
The rise of DeFi will also play a significant part in the price of Cardano. The DeFi space is seeing a lot of growth, and Cardano, with its layered architecture, is in the perfect position to take advantage of the DeFi space's growth.
Cardano's success is also dependent on the number of smart contracts and dApps that the platform can support. With this in mind, we know that the team behind Cardano is actively upgrading the platform. Cardano, being the only peer-reviewed blockchain, is more than capable of overcoming any challenges thrown its way. So to answer the question, Yes, Cardano can become a millionaire maker.
Final Thoughts
Cardano has one of the most significant daily trading volumes, and its market capitalization is also growing exponentially. The cryptocurrency is extremely popular with both cryptocurrency enthusiasts and investors who think that Cardano can become the next millionaire-maker investment.
If we look at the price history of Cardano, we see that the price has remained relatively stable and has maintained a positive trend. Several price predictions support Cardano's growth potential.
Although most technical analysis and price forecasts predict that Cardano will be bullish over the next few years, cryptocurrency markets remain relatively volatile. ADA's price could be affected by market sentiments that could change at any time, resulting in a severe loss for investors.
Cryptocurrency prices are notoriously difficult to predict, so it is prudent that you consider all factors and research well before investing in Cardano or any other cryptocurrency.