So, which one to get? You need At Least How Many of Each?
That’s going to be the topic of today’s discussion because we are really going to compare apples to apples. Because DeFi is really like Ethereum. With DeFi smart contracts already launched on September 12th.
In this article, we will check what smart contracts bring to DeFi, what Ethereum has for advantages, and mainly which one to get because that is a pressing question.
Especially those who are new to crypto, they hear DeFi, they hear Ethereum, but which one should I really get. So that’s what I’m going to try to answer.
I’m also going to answer the question of how much to get. I do have a minimum requirement of tokens to hold for each well, not for each, just for one of them, really.
Cardano / Smart Contracts
I want to start with DeFi in this DeFi versus Ethereum debate on which to buy. Why well, because it’s been recently announced that DeFi successfully launched their smart contract on their mainnet on September 12th.
Why is a smart contract so important? Such that it’s been making ADA’s price rise, and really it’s been causing it to moon over the past couple of months.
It is important because smart contracts will bring decentralized finance or DeFi to DeFi.
Because so far, DeFi has mainly been just a proof of concept. They’ve really been just an idea throughout the year, and their idea was to compete with Ethereum.
DeFi had a few several big releases over the past year. One notable one is staking. And staking really came out on July 29th of 2020.
And that changed the game. But with smart contracts, this will change the game because smart contracts are like the big daddy.
This means that things like decentralized exchanges, nfts and decentralized lending, which was only available on Ethereum, will come out.
The main advantage for DeFi is really about the fees. Because DeFi runs on a proof of stake system, it is much less energy-intensive than Ethereum, which does mining.
And the gas fees you need to pay to execute smart contracts is much cheaper than on Ethereum. And if you don’t know what smart contracts are, it’s like a contract in real life.
So you’re going to have to pay someone to execute that contract. And that payment on DeFi is more affordable than on Ethereum.
So how I feel, I feel like many people are really buying into DeFi right now, buying into this hype. The hope is that smart contracts’ release will make the price moon next a couple of months.
However, I really do think that traders and investors who are already invested in DeFi’s from way back when will likely take profit after months.
And that will cause a free fall because that is usually how things go. Buy the fear, sell the greed or buy the rumour sell the news.
As of now, I really think that DeFi is really sitting on a good price and not too expensive to buy. So at this moment, I am sitting out the buying some more ada.
I am just staking all my ADA earning interests. But, at the same time, I wait on the sidelines and watch what happens. Read More…