Unless you’ve been living under a rock over the past year, you’ve probably caught the cryptocurrency bug. In fact a quick Google Trends search will show that interest has picked up significantly over the last year. Whether you’re just getting started, need to learn how, or you’re contemplating getting some Bitcoin exposure, chances are cryptocurrency has piqued your in your interest.
I’ve said before that any talk about cryptocurrency starts with Bitcoin but if cryptocurrency is here to stay, then you’ll need to diversify your holdings. A good way to do this is investing in ETH, however I am not 100% convinced the network will continue to scale.
There are currently over 3000 distributed apps (Dapps) available on the Ethereum network. Ethereum serves as the gateway to DeFI (aka decentralized finance), so if you’re looking to lend, borrow, or earn interest on your crypto, most likely you’ll find a solution on the Ethereum network.
This is awesome, but there is a drawback and that drawback is the Ethereum transaction fees (aka gas fees) which fluctuate over time. In fact, they can get so outrageous and even exceed the amount you’re planning to spend.
There is an update called, Ethereum Improvement Plan (EIP) 1559 which has the possibility of decreasing gas fees, however I am not convinced. Because of this, I’ve gone looking for other cryptocurrency investments, and thats when I stumbled upon Cardano.
Cardano was launched in 2017 after it was developed for 2 years. Its founder is Charles Hoskinson, who is also a co-founder of Ethereum. Mr. Hoskinson’s experience in building a successful network, already puts him at the head of the pack.
Additionally, Cardano is open-source and based on peer-reviewed research. If you believe Bitcoin was the first wave and that Ethereum is the second wave for cryptocurrency, then Cardano is the third wave in my opinion. The Cardano network, theoretically should address the other issues that have plagued both Bitcoin and Ethereum, and it should be scalable from the outset.
Cardano is young in its development and despite this is the fifth largest cryptocurrency by market cap. Additionally, the current price is low and the network hasn’t met mainstream adoption, so there is an opportunity to purchase a significant amount of coins at this time.
I am also a fan of the Cardano business model. There is one arm which deals specifically with the network, while two additional arms focus on consulting for the network and the research that drive network development. The current development plan for the network lists five phases and we are currently at the start of phase 3, with the introduction of smart contracts. Later, per the roadmap listed on the Cardano website, the network will see scalability as well as governance addressed as well. Overall, I am excited in what direction this company and its cryptoasset, ADA, will go.
In summary, I believe Cardano is the best cryptocurrency available because:
- Charles Hoskinson, is a co-founder of Ethereum, which has largely proven to be successful
- The network is early and the current price of the asset isn’t prohibitive for a large position to be obtained at a reasonable price
- Cardano benefits from the studying the pitfalls and successes of other networks such as Bitcoin and more importantly Ethereum
Please know that investing in cryptoassets/currency is risky. I personally cap the amount that I am willing to invest in any risky asset at 1% of my yearly salary to limit my downside. If I lose that 1%, I can recover from that without difficulty. Lastly, I am a fan of Cardano, but I am not delusional in the fact that it is risky and could go to zero (or go to the moon 🙂 ).
As always if you have questions or concerns regarding creating an emergency fund, investing, real estate, insurance, or planning for the future, don’t be afraid to speak with qualified financial advisor. Smart Asset has a great tool to find an advisor in your area or feel free to email me (contact@surgifi.com) to help you on your path to financial independence.
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