Bitcoin was the first crypto and is still the most well-known in the industry more than ten years later. Cardano, a smart contract blockchain platform, has an ambitious long-term strategy.
In 2021, Bitcoin and Cardano each increased by 1,000 percent in value. In the first half of 2022, both of these digital coins plummeted by 90%. Will their prices be able to stabilize and restart their slowing growth trajectories in 2022? Let’s have a look at Cardano and Bitcoin to find out for ourselves.
The case for Bitcoin
Bitcoin prices have fallen 69% from all-time highs set in November, bottoming out at roughly $21,000 per Bitcoin on June 15. Since December 2020, the biggest cryptocurrency hasn’t seen values this low. Despite the recent negative vibes, Bitcoin has delivered market-beating returns over the previous two years:
As with every other economic crisis, this bear market will eventually come to an end. Meanwhile, foreign and domestic regulators are working on legal structures and taxation systems for these newfangled digital assets, while even an overly stringent set of rules would be preferable to the current vacuum of regulation. The crypto sector that has been beaten down will rise again.
The future of decentralized finance, Web3, and the metaverse will be shaped by Bitcoin’s ability as a simple payment mechanism and an extremely secure storage system for economic value. There are other cryptocurrencies that perform similar tasks, many of which were started as direct copies of Bitcoin’s code, but none comes close to matching Bitcoin’s broad market presence.
Bitcoin is likely to be supported by any system or service that handles financial transactions. Bitcoin is commonly used as the first-choice option, and it’s become more popular. Every new Bitcoin-powered product grows the currency’s market strength. This is an instance where having the initial mover advantage benefits Bitcoin in the long term.
The bitcoin rally may not start until Washington (and Beijing, and Tokyo, and Berlin, and…) completes its thorough cryptocurrency legislation. But if they do, you do not want to be left out.
The case for Cardano
The Smart Contracts Platform’s Future Could Be Even More Exciting Than Bitcoin’s.
Even though Cardano was not designed to meet the ERC20 token standards from the start, it is compatible with existing smart contracts written for Ethereum. The feature was introduced in a later code upgrade, which was implemented using Milkomedia, a plug-in blockchain that also incorporates cross-chain capabilities similar to the Polkadot ecosystem.
The Milkomedia feature demonstrates Cardano’s adaptable blockchain architecture in a powerful light. This development platform is expected to add more features over time while remaining at the forefront of blockchain innovation. Cardano already includes decentralized lending and borrowing capabilities, yield farming protocols, NFTs, and a variety of other features.
Cardano is positioned to supply a lot of the functionality of decentralized banking and transaction services, according to proponents. This currency isn’t out to kill or replace Ethereum, which appears set to retain leadership in the smart contract market. Instead, Cardano enables app developers access to unique features and capabilities as well as high-speed contract processing.
Don’t forget that Ethereum’s overall market cap is $130 billion today, whereas Cardano has a little over half of that ($55 billion). Even if Cardano achieves just 20% of the larger cryptocurrency’s market share, it can outperform Ethereum by 50%.
Who’s the big winner?
There are no losers in this contest. Cardano appeals to a different sort of investor than Bitcoin, with greater potential returns in an even more competitive subsector. If I have to pick one winner, it has to be Bitcoin because it is the closest one to a guaranteed winner in this fast-paced market. Long-term investors should build their crypto-focused portfolio around Bitcoin, leaving a smaller proportion for the more exciting but more un-predictable Cardano coin.