Have a bright future, this is why you should Hodl Cardano now!

Cardano Crypto (ADA) is a popular crypto project in the digital asset industry. Its presence that carries the most stable proof of technology makes Cardano different from Crypto Coin Bitcoin (BTC) and Ethereum (ETH) and currently Cardano holds the title of the 3rd generation blockchain.

It's no wonder that cardano is now one of the 10 most popular crypto coins in the world.

Indeed, conditions like the above make you interested in buying, and thinking about trading using this cryptocurrency. However, there are some arguments that require you to keep this asset long term.

So, what's the reason?

What is Cardano?

However, before getting into this, it's a good idea to become familiar with the Cardano blockchain system and the ADA coin itself.

Just like other altcoins, Cardano is a cryptocurrency that only appeared in 2015 and was released in 2017. In other words, this coin is much younger than the two crypto champions, Bitcoin and Ethereum.

Cardano was born from a team of Ethereum founders, Charles Hoskinson. Learning from previous crypto coin developments, Hoskinson created a blockchain technology system using a more cost-effective and environmentally friendly proof of stake (PoS) consensus algorithm.

Through this technology, Cardano can be added with electricity which is cheaper than its predecessor and is more secure from cyber attacks or data theft.

With the implementation of this new technology, PoS can process one million transactions per second. This system is known as the Ouroboros Protocol.

Well, this blockchain system has one native coin, which is called ADA. Every Cardano user can use ADA to transact on the Ouroboros protocol without the need for a third party as an intermediary.

Because Cardano uses the Proof of Stake system, Cardano users also use ADA for staking. Each ADA token can be stored in a digital wallet, which will later be allocated to a "staking pool". ADA owners who do so will be rewarded for their staking actions.

Why Will Cardano Coin Be Valuable in the Future?

As explained above, the Cardano blockchain system “covers up” the mistakes made by its two predecessors, namely Bitcoin and Ethereum. Thus, users of crypto assets may make more and more transactions on the blockchain network.

Thus, we can expect that the demand for ADA will increase in the future. Some analysts say that the Cardano blockchain has a promising future. So, it will have an impact on demand and also the value of ADA in the future.

So, what are the things in the Cardano blockchain that can increase ADA demand?

1. Smart Contracts.

The Cardano development team has launched Smart Contracts, which will be the gateway to the Non-Fungible Token (NFT) world, which has so far been dominated by ERC-20 Ethereum.

Well, speaking of NFTs, you must have heard about Twitter CEO Jack Dorsey's tweet, which sold for US$2.5 million in the NFT version, right?

Yes, the NFT sector is indeed very promising. According to NFT analysis firm VIMWorld, the NFT market alone has grown by 2,100% in the first three months of 2021. By the end of this year, the NFT market alone is expected to be worth US$20 billion more than in 2020.

Imagine if Cardano also developed NFT? Surely ADA holders will also be splashed with cash right?

Moreover, with the Ouroboros proof-of-stake consensus, NFT transaction fees on Cardano are predicted to be cheaper. This will be an advantage of the Cardano smart contract over Ethereum.

2. Liquidity.

This is again related to the Proof of Stake consensus algorithm.

The ADA coin is predicted to have more liquidity than its predecessor because it runs on a more cost-effective blockchain system. Thus, this system can accommodate millions of transactions in one second.

This is considered to be the attraction of the Cardano blockchain system and is expected to make crypto asset users look away from Bitcoin and Ethereum. Especially in Bitcoin, when the long transaction duration finally made them choose to transact on the lightning network.

CARDANO (ADA) Predictions in the Future.

Optimism about the Cardano blockchain system has also led to some analysis predicting future ADA prices. Well, in this case, Coinpedia managed to compile some expert market opinions and analysis from the cryptocurrency community on the value of ADA in the future.

They argue that the ADA price could touch US$4.29 per chip at the end of the year, or shoot up 138% compared to its current position. This is due to the enthusiasm of crypto players regarding the proof of stake consensus and their awareness of the proof of work system which is considered not environmentally friendly.

However, if there are no significant developments on the Cardano network, then the ADA price could be stuck at US$2.76 per chip. Because, users might choose Cardano because of the scale of transactions and its user-friendliness.

So, how about it, Buddy Cuan? Are you also interested in holding ADA?