Introduction to Cardano and its growth
Cardano (and its own ADA coin) is an unusual and interesting cryptocurrency which has previously flown a little under the radar. Nevertheless it’s now ranked 11th in the world’s cryptocurrencies with a total market capitalisation of $10.5bn
Its users assert that it’s more advanced and scalable than its main rivals. It is this technological superiority and agility that will propel it into the top five cryptocurrencies and also make it a good long-term investment.
So what are our Cardano price prediction for 2020 and beyond? Is Cardano a fantastic investment? How does its coin ADA work?
A Little ADA Background
Cardano premiered in 2015, the brainchild of Charles Hoskinson, who was one of those co-founders of all Ethereum. Unusually for a crypto-based platform, Cardano’s developer team took their time perfecting their own offering and so its coin, ADA, had a lot of development and hibernating period of about a couple of months. Finally, in October 2017, Cardano was launched and the price of the coin instantly began to soar.
Third generation crypto
Some pundits have clarified Cardano as a third generation cryptocurrency. The theory runs the first generation was Bitcoin, a fundamental digital token, but one dogged by scalability and technological issues. The second creation, best illustrated by Ethereum, added functionality such as smart contracts and offered improved scalability, but still not enough to take its blockchain mainstream.
The next generation, of which Cardano is a prime example, emanates from open source projects where teams of scientists and technologists collaborate on handling the key issues that stop blockchain from being able to scale. For this reason, many developers have a great deal of affection for Cardano since they consider it an effort to push the blockchain forwards.
It is a platform designed to allow organizations, such as financial institutions to conduct decentralized applications. Exactly like Ether too, the ADA is tradable and listed on popular exchange and may be utilized to cover and buy things online.
Cardano’s champions claim that its open-source nature and backing from academics provides it a huge benefit. Its extended bandwidth lets it process more transactions per second than its main rivals.
Another interesting thing about Cardano is it has its own wallet called Daedalus, which is far more advanced than the wallets which are offered for, say, Ether. For example, it includes back-up features and doesn’t hold a user’s keys, instead it gives them complete control of their digital cash.
Recently there has been a lot of speculation that Cardano is about to establish a stablecoin. The idea being that they offer a level of stability to enable consumers to make regular purchases without having to be concerned about the prices they have paid varying. Charles Hoskinson has said that the stablecoin could use ADA, as part of its central bank mechanism. This is likely to raise both ADA coin’s cost and its own use-cases.
Cardano price prediction 2020
Things are certainly looking positive. On February 13, ADA coin started the afternoon with a seven-month high rising by 5.2% to reach $0.6891. In the previous 30 days it’s soared by nearly 82 percent.
Part of the expansion is because of Cardano mirroring the success of other cryptocurrencies such as Bitcoin and Ethereum that also have made a solid beginning into 2020. On the other hand, the information of this stablecoin has helped shove Cardano higher than it otherwise may have gone.
Another element that might impact the price of Cardano is its method of mining. It utilizes a proof-of-stake algorithm which has now been adopted by other platforms like Ethereum and is seen as superior and more sophisticated than the proof-of-work method utilized by Bitcoin.
There is another interesting quirk which may impact on the price of Cardano which is that it is very well known in Japan. The truth is it’s estimated that as many as 80 percent of ADA coin owners are residents in this nation. So in some ways the near future for Cardano is closely tied to the economic potential for Japan.