You may notice that Cardano and Ethereum are frequently compared to each other. Due to the fact that they have similar purposes and both Ethereum and Cardano are getting ready to release some really big updates.
In this article, we are going to take a look at which of the two will be a better investment for 10x or 20x returns.
You may be wondering which is a better investment for maximum returns.
Does the sign of putting your money in the world’s second cryptocurrency or Cardano sound like a better option?
And towards the very end of the article, we’ll look at some price predictions and price actions to give you a better idea of what kind of returns we could see in 2021 and beyond.
Let’s get into it now both Ethereum and Cardano are about to have some major upgrades.
With significant increases in usage and development and by the end of 2021, we’ll have a really good idea of which of these two will claim the crypto title of the smart contracts king. And before I go over some similarities we first need to go over what really sets them apart side by side. Now Cardano was first launched in September 2017. And Ethereum went live in July 2015. And both of these networks plan on completing significant updates in 2021 which we’ll talk about later in this article.
Now Cardano was founded by Charles Hawkinson one of the Ethereum co-founders and Vitalik Buterin a 19-year-old founded Ethereum. With many others contributing to its code. Now Cardano was developed years after Bitcoin and Ethereum were first launched. Allowing it to learn from its flaws and capitalizing on their benefits and its founder Charles Hawkinson refers to Cardano as a third-generation cryptocurrency.
This means it already has some of the characteristics that previous cryptocurrencies are currently still working on. Now Cardano’s network is very scalable because of Ouroboros.
A version of the proof of state consensus method and according to their website Ouroboris combines unique technology and a mathematical verified mechanism which in turn combined behavioral psychology and economic philosophy to ensure this and sustainability of the blockchains that depend upon it. Now Ethereum on the other hand simply intends to go from the proof-of-work model to a more energy-efficient proof-of-stake model.
And we have actually seen more progress being made from Cardano in this regard. Cardano’s main use case is to allow transactions in its native cryptocurrency ADA. As well as to let developers create a safer decentralized application network. And Ethereum was designed to become a worldwide open-source platform for new types of economic applications.
Ethereum is still seen as one of the most ambitious blockchain initiatives up to date which aims to use blockchain technology to decentralize products and services in a variety of use cases other than just money. The Cardano network costs are usually cheaper than those on the Ethereum blockchain. In transaction confirmation times are comparable. And i do believe that Ethereum’s true benefit over Cardano is a force mover advantage Ethereum is more popular since it came out first and people are used to it.
Cardano has even been called the Ethereum killer by a lot of analysts and investors. But even Charles Hawkinson has said that the only Ethereum killer is Ethereum 2.0. Which we’re going to see later in 2021. “In the short term though I mean when you point to projects being built on Cardano now or those I think the protocols you laid out kind of a February timeline for smart contracts to be built on I mean.
What’s the update there in terms of building on top of Cardano relative to some of these other projects out there too that also claim to be Ethereum killers. “ Well, you know first off in support understand Ethereum is killing itself they’re replacing Ethereum with Ethereum 2. So Ethereum 2 will kill Ethereum one. So i think that’s the Ethereum killer. You know we try to do more holistic things it’s not just can you process smart contracts. It’s also can you do that with identity and compliance. Can you do that with metadata? Can you do that with automated regulation these types of things a lot of missing pieces and can you do that at a scale for billions of people and can you do that with some notion of governance that doesn’t require a custodial entity? Always be around take care of it. We’re used to custodial entities you have Microsoft the Windows you have apple to the iPhone and so forth and you always say okay they’re the guys who are going to get the next version out. But when you strip away that centralized curator who’s going to make it quantum resistant? Who’s going to do the next big innovation? Who’s going to make sure it’s interoperable with some big legacy payment system or the bis or something for Cbdcs? And so forth so Cardano was really built to be holistic in that respect”.
Now Cardano will also include very soon smart contract capabilities which entail adding code that allows automated self-executing contracts to be created.
And developers may use smart contracts to construct applications on top of blockchain platforms like Ethereum’s Uniswap the centralized exchange.
Smart contracts underpin the whole decentralized finance business. With Ethereum accounting for the majority of it and Cardano is ready to enter the game. And Ethereum’s blockchain can only process a small number of transactions per second. Roughly 15 per second causing severe network congestion.
And this causes longer transaction times and higher gas fees or transaction costs to send transactions through. Now featured network enhancements should alleviate the problem Cardano is currently designed to handle higher transaction volumes.
As it has been tested for up to 257 transactions per second. Now as mentioned earlier Cardano employs our boris. A consensus method similar to proof of stake allows users to validate transactions and earn more ADA to protect their network.
Making it possible for those that hold Cardano to gain even more Cardano as time passes. Now Ethereum’s blockchain like bitcoins is powered by proof of work for now but the network, on the other hand, is actually in the middle of transitioning to Ethereum 2.0 which intends to move from a proof of work to a proof of stake model.
And any user with a minimum of 32 Ethereum may utilize this model to lock their funds in a contract and earn rewards for performing computations that are required to add new blocks to the blockchain.
Aka staking your Ethereum. And Cardano’s main cryptocurrency ADA like many other cryptocurrencies have a limited supply. Which means that there will only ever be 45 billion ADA according to the software’s regulation. And in early 2021 there were roughly 31 billion ADA in circulation with the remaining 14 billion to be mined.
Ethereum is powered by the cryptocurrency Ether and Ether is mined in every block and distributed to its miners in the same way that bitcoin is. Whereas bitcoin has a limited quantity Ethereum has no such restriction and its supply is said to grow at a rate of 4.5 percent each year that’s until Ethereum 2.0 rolls out.
This is going to cause Ethereum to become deflationary causing their supply to be limited therefore making Ethereum more scarce. Now, the Ethereum blockchain is also supported by a cryptographic function known as gas.
Which is a specific computing unit that is used to calculate fees. And it’s worth noting that the more complicated the computation the more gas a program will need. And as previously mentioned the Ethereum network’s primary objective is to transition to proof of stake which will allow users to receive incentives for staking their currencies and confirming transactions. Enough for some price action and price predictions. Now from its launch in 2017 Cardano traded of roughly 10 cents until early 2021.
When it’s kind of rocketed well above two dollars due to being one of the most eco-friendly cryptocurrencies but since then it has experienced a huge drop and it’s currently trading at one dollar and eighteen cents.
And since last year it has posted a return of over eighteen hundred percent and for Ethereum during the past year the price has gone up two hundred dollars to over four thousand dollars during May and it reached an all-time high of four thousand three hundred dollars.
But since then it has fallen dramatically and it’s now trading at roughly nineteen hundred dollars at the making of this article.
And we have price predictions for Cardano reaching five dollars to ten dollars in this current bull cycle and price predictions for Ethereum reaching eight thousand to twelve thousand dollars in this current bowl cycle. Now you can buy both Ethereum and Cardano on all major cryptocurrency exchanges such as Coinbase, Binance Gemini, and Kraken.
Now to conclude Cardano will keep its plan in issue improvements on time and overall. In my opinion, Cardano appears to be a better purchase right now at least for the short term to medium term because of its price as it’s very affordable while Ethereum’s price is more likely to rise 15 to 20 percent and it’s more expensive the actual difference maker will be when both of these cryptocurrencies go through their major updates.
And we’re finally gonna get to see how Ethereum’s proof-of-stake mechanism competes against Cardano’s. But i also agree with Charles Hawkinson that having the first-mover advantage is not everything but there’s no catching up to Ethereum at this moment and on a longer time scale however I do believe that both of these blockchains are going to be able to coexist with one another. As Cardano is designed to be a long-lasting cryptocurrency and if you do decide to invest in Gardano or Ethereum it is always better to invest and play the long game as there are still many updates and many upgrades and many catalysts coming up for both of these two.
And this is one of the reasons why I’m so bullish on both Ethereum and Cardano and why I actually hold both Ether and ADA and these next few weeks are going to be very exciting for both Ethereum and Cardano holders as we have some major updates coming. So again make sure to think long term and only invest money that you can afford to keep and have invested in so again if you do decide to invest in either Cardano or Ethereum then make sure that you’re only investing money that you can afford to lose and just play the long game.
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