Cryptocurrency, as we know it, moves at a breakneck pace. Projects are launched weekly, development milestones come and go between every news cycle, and headlines rarely stay the same two days in a row. We dash from ICO to hard fork and coin to classic coin, anticipating each new exciting project transformation with veiled excitement. But one must ask themselves, why? Is the breakneck pace good for cryptocurrency? Does it earn trust among investors? Does it give your cryptocurrency the edge it needs over competitors? At Endeavor INTL, we believe the answer is NO. There is a better way. Cardano.
Cardano, launched by Input Output Hong Kong (IOHK) in 2015, decided from Day 1 to do things at a slow, methodical pace. They enlisted the support of academics, experts, and the international community. All of their research is peer reviewed, submitted for academic publication, and carefully scrutinized by the best minds in the industry. While other cryptocurrencies were dealing with issues such as scalability, hard forks, hacks, and network failures, Cardano kept learning, and adjusting. While other cryptocurrencies announced side chains, and smart contracts, and decentralized finance plans, Cardano resisted the temptation to release all of their technology into the wild just to grab a piece of the pie. They even completely scrapped and rewrote their codebase at one point based on external feedback and guidance, just to make it better, and despite massive pressure from early adopters. You see, being first, or being the fastest, was NEVER Cardano's plan. Cardano wants to be able to sit across the table with world leaders and governments, and "quick" is not a word they want associated with the project's technology.
The end result of the slow and methodical approach has been the creation of ADA, a cryptocurrency that takes the best of Bitcoin and the best of Ethereum, and adds on extreme scalability and performance. Will ADA overtake Bitcoin and Ethereum? Maybe. Maybe not. But in terms of showcasing the best that technology can offer, Cardano wins. By doing things the right way, Cardano wins. By showing us how to build a project through collaboration, cooperation, and communication, Cardano wins.
But this, alone, is not the only reason why we think Cardano is THE project to back in 2020. Yes, we believe in the technology. We believe in how IOHK created it. We believe in the potential of Cardano. But right now, as investors, we believe Cardano to be the most undervalued coin on the planet.
Cardano's Market Cap is $3B, It is 1/8th of Ethereum's. It is nearly 1/100 of Bitcoin's. And next month, Cardano is going live with staking. And then it is going live with smart contracts. And then it is going live with Coinbase. And then coin interoperability with Litecoin. And we haven't even started talking about Hydra, the project that will bring Cardano's speed to 1 million TPS. With ALL of this in front of us, Cardano is still sitting at a Market Cap that is a mere fraction of its competitors.
Why? Because the cryptocurrency industry is obsessed with development speed, announcements, and news cycles. Echo-chamber biases abound. Subjective opinions (including this blog) dominate conversation. And Cardano has never concerned itself with making the echo-chambers see their vision. Cardano just kept forging ahead, doing things the right way. Cardano believed the end result would be worth it.
So where are we now. Like I said, Cardano's Market Cap is $3B. In 1 month, when staking starts, 90% of ADA will be delegated to stake pools. While none of this ADA is permanently locked to a pool (in fact, ADA NEVER leaves an owner's wallet), most ADA holders will pick a pool and keep their ADA delegated for long periods of time just to earn AND compound rewards. Additionally, ADA pledged to a stake pool by pool operators will stay in place generally as long as the stake pool is in operation. As a result, practical ADA liquidity is going to drop to an all-time low. Scarcity is going to drive up the price, quickly. And this is before smart contracts even begin. And even if we do not consider economics or technology in the picture, when the scarcity starts, investors react. Automated purchasing algorithms kick in. Risk takers jump in. The fear of missing out is a real thing. Psychology will drive up the price. The combination of scarcity, smart contracts, and investor psychology, combined with a Market Cap that is far below its competitors, leaves us to believe that ADA is going to increase in price before the end of the year. We don't want to speculate how high it can go, but we think $6B in Market Cap is attainable. And with ADA delegated long-term in staking, the normal pullback after a quick price hike may be less than previous increases. Basically, 2020 is going to determine a new normal for Cardano, a new baseline. And we are far from it.
What heights do you think Cardano can reach in 2020? Why? Or why not?
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