Another light in the cryptocurrency constellation erupted earlier in 2021 when Bitcoin (BTC) and Ethereum broke new marks and began to enter the general consciousness. That was Cardano ($ADA), which has seen a 2000% price increase while trading between $1 and $2 in mid-2021. In fact, a quick glance at Google Trends shows that $ADA overtook Litecoin ($LTC), one of the big cap cryptocurrencies in terms of public interest in 2021.
It is both interesting and illuminating to note that over the past 5 years, both the cryptocurrencies only had two major spikes- once in early 2018 and now in 2021. While $LTC was well ahead of $ADA in terms of Google popularity in 2018, the tables, now have been turned. Earlier in the year, I wondered if ADA may turn into the proverbial roaring mouse (see my August 2021 post on ADA: https://bit.ly/3pX36XI). With 2022 just around the corner, it’s time to get back to fundamentals and evaluate if $ADA can still deliver on its prior promise and be a solid investment in 2022.
What Is Cardano ($ADA)?
Cardano is a cryptocurrency that was developed in order to provide more advanced features beyond what Bitcoin offered. It is the brainchild of Charles Hoskinson, a Bitcoin expert that became a co-founder of Ethereum saw a need for a second Bitcoin due to Bitcoin’s scaling issues and short transaction times. The latest features include a system that uses a layered architecture with a layer defined as either a computational layer or cryptographic layer, so as to fix Bitcoin’s lack of vulnerability to quantum computing. Hoskin believes that $ADA’s blockchain infrastructure and its ability to support governance could “let it run a nation-state” (https://bit.ly/3ITwMxy). Given that Bitcoin is obtaining national recognition in a growing number of jurisdictions, and Elon Musk has stated his intention to allow individuals to merch with dogecoins, the prospect of $ADA powering a nation-state in terms of governance or legal money cannot be dismissed.
Cardano has made its way into supporting practical governance and policy on the ground. ADA and the World Mobile Group…