It’s difficult to imagine cryptocurrencies becoming the next Bitcoin when they’re only a few dollars — or even a few cents — per token. After all, that cryptocurrency superstar (CRYPTO:BTC) recently hit a new high of $60,000 per coin. It’s important to remember, however, where Bitcoin came from. When it first appeared in 2010, the world’s first cryptocurrency was only worth about eight cents.
That means it’s possible that newer players with low valuations today will follow in their footsteps. Of course, not every single one of them will. As a result, before placing this type of wager, it’s critical to carefully consider the characteristics of each. Currently, I believe one cryptocurrency in particular has a strong chance of becoming the next Bitcoin. Let’s see which one it is, and why.
Cardano (CRYPTO:ADA), the cryptocurrency created by Charles Hoskinson, is what I’m talking about. He’s also a co-founder of Ethereum, a larger player. This is unquestionably a positive sign, since it equates to credibility and experience in the field. We can imagine Hoskinson taking what he learned while working on the Ethereum project and applying it to his work on Cardano.
So, what is Cardano, exactly? It’s a blockchain network with its own cryptocurrency, “ADA.” Smart contracts, or contracts that self-execute when certain conditions are met, are supported by Cardano.
Cardano, moreover, can securely store data for a variety of purposes. For example, it can track the origins of pharmaceutical products in healthcare, making it more difficult for counterfeit medication to enter your medicine cabinet. It can also be used in agriculture to track product origins and quality. Cardano aims to be a decentralized financial system that can bring banking to people all over the world. Cardano’s wide range of applications could make it a go-to platform for a variety of industries in the future.
Cardano has a few more features that make it particularly appealing — and that could lead to a significant increase in its value in the future. The first consideration is transaction speed. Cardano has a real chance to win this game. One of Bitcoin’s drawbacks is the limited number of transactions per second (roughly 30). Cardano, on the other hand, can process 250 transactions per second. And it’s working to make that number even higher.
Cardano’s eco-friendly profile is also a plus. This crypto player consumes the energy of two power plants per year. That may appear to be a large sum, but it pales in comparison to the cryptocurrency leader Bitcoin. Bitcoin consumes more energy than the Netherlands over the same time period to run its operations.
Finally, two other factors could contribute to Cardano’s success. And it has something to do with the platform’s research and quality. Throughout the development process, Cardano employs peer review. This means that before any changes to the Cardano platform are implemented, academic peers must review them and give their approval.
And, when it comes to the development process, it’s still going on. Cardano’s creators have launched a five-phase program to take the platform to the next level. The goal is for Cardano to achieve 100% self-sufficiency.
As a result, Cardano could be on its way to become everything that Bitcoin is, but better. Cardano is currently trading for around $1.80. A price of $60,000 may appear to be a long way off from such a low starting point. However, Bitcoin has demonstrated that such a road is possible.
This doesn’t guarantee Cardano will reach $60,000, but it might rise significantly from where it is now. And, given all of Cardano’s benefits, it appears that this nascent cryptocurrency has a decent chance of following Bitcoin’s upward trajectory.
Looking at the chart below, we show a potential trade, investors can take here at current Cardano price of 1.20 with a profit price target at 1.8119 and a stop loss at 0.6892. Cardano is trading next to a wide support zone down to 0.95, and because of large price volatility, the wide stop loss we suggest is appropriate for Cardano price movement.