The great thing about writing about investing is that you are always learning something new. For example, until a few days ago, I thought Cardano (CCC:ADA-USD) was an Italian restaurant in New York City or another major metropolis.
Source: Immersion images via Shutterstock
Little did I know that it was one of the best kept secrets in the developing world of cryptocurrencies. Like mine InvestorPlace Colleague Alex Sirois recently stated that it was Benefit and differentiation make it worth owning.
There’s that word utility again. I guess we’ll hear a lot in 2021. With so many cryptocurrencies available today, it is becoming increasingly difficult to tell the winners from the losers.
Fortunately, Cardano has an ace up its sleeve. One that could carry it over ether (CCC:ETH-USD).
Cardano and Ethereum share a common bond
I am fascinated by DeFi (decentralized financing). It’s a big reason I believe Ethereum is a far more interesting investment as Bitcoin (CCC:BTC-USD) despite the fact that BTC is clearly a better buy if you are looking for a store of value.
But as I said in the intro, my knowledge of cryptocurrencies is in the works. As such, I had no idea that Cardano’s founder, Charles Hoskinson, was one of them eight co-founders of Ethereum. He apparently left an argument over the loose governance structure and the acceptance of venture capital. In 2015 he became CEO of IOHK and founded Cardano.
It has taken Cardano six years to get to the point where it can bring value through the use of smart contracts. Better late than never.
The fact that Hoskinson learned many things from his time at Ethereum suggests that those who use Cardano will get a great customer experience.
Developer Tech Contributor Ryan Daws pointed out in his aforementioned February article that Cardano is just getting started. There are more than 22 million developers worldwide, but only 10,000 active dApp developers (decentralized app).
The good people at Cardano have worked to make it more user-friendly. Daws quotes Hoskinson:
“[Developers] write .NET applications, Java applications and things like that. The first thing we said is, “Is it possible to create a framework that over time will bring all of these popular programming languages into our space for both off-chain and on-chain infrastructure and do this in a safe? , sustainable path with predictable costs? ‘”
Daws points out that Ethereum’s slow speed and high fees have led people to look for alternatives like Cardano. Hoskinson is quick to point out that Ethereum has been improving in recent months and that Cardano is not out to replace the project but rather to offer an alternative in what is emerging as a huge market.
The bottom line
Hoskinson suggests that businesses and developers don’t have to choose each other to figure out the problems that need to be solved.
“Dapp developers are companies, they build a dApp because they want to achieve something, they want to solve a specific problem,” says Hoskinson. “You should look at Ethereum and Cardano the same way you look at Rackspace, Amazon and Digital Ocean. It’s kind of silly to say you can only build on Amazon. “
I recommend reading Daws’ article if you are at all curious about the future of the blockchain platform or want to learn more about this fascinating use of technology.
In my April 1st article about Ripple (CCC:XRP-USD) I came to the conclusion that cryptocurrency had to figure out how to be both a store of value and functional in the nature. I think Cardano is in that situation too, but in the utilitarian realm it did a better job putting it ahead of Ripple in my books.
I will continue to learn about Cardano and Ethereum and what makes them similar and different. In the meantime, when it comes to cryptocurrencies, I’d stick with Bitcoin if all you need is a store of value.
However, if you want to be part of something bigger, I couldn’t think of a better choice than Cardano.
At the time of this writing, Will Ashworth held positions (neither directly nor indirectly) in the securities identified in this article.
Will Ashworth has been a full-time investing writer since 2008. His publications include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in the US and Canada. He is particularly fond of creating model portfolios that will stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing, Will Ashworth did not hold a position in any of the above securities.