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The red-hot cryptocurrency market has cooled off in the past 48 hours after one of the industry’s biggest and most well-known supporters – Tesla (NASDAQ:TSLA) CEO Elon Musk – said his company would stop accepting Bitcoin (CCC:BTC-USD) Payments for Tesla cars due to concerns that Bitcoin mining is harmful to the environment. The news sent bitcoin prices down, as did many other cryptocurrencies such as ether (CCC:ETH-USD), which has risen sharply in the past few weeks while BTC has flattened. But one cryptocurrency continued to gather despite all the turbulence: Cardano (CCC:ADA-USD).
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Cardano price peaked at $ 2.10 on Thursday, while the familiar names Ether and Bitcoin returned double-digit numbers in certain places, falling to the levels of $ 3,500 and $ 46,800, respectively.
Why the relative strength of the Cardano price?
Because in contrast to BTC and ETH, ADA coin is a “green coin” – or an altcoin that is actually environmentally friendly.
As you can see, mining Bitcoin and Ethereum is not very efficient and therefore produces a lot of “wasted” energy. However, Cardano mining is far more efficient because of its differentiated underlying architecture.
This unique feature of Cardano could position the ADA coin to continue to outperform for the next several weeks and months as the market continues to fret about the environmental friendliness of cryptos. I suspect this will lead to a rush for green coins – of which Cardano is the largest and most famous.
Do you want to make quick money in the crypto market? It may be time to buy ADA coins.
Read on to take a closer look, and then check out those when you have the time Daily 10X stock report for an exclusive look at my favorite technologies and cryptocurrencies.
What is Cardano: The green coin to buy
To understand why the ADA coin is currently outperforming BTC and ETH, we must first understand the science behind cryptocurrencies.
The process by which new bitcoins are brought into circulation is known as bitcoin mining. It is a competition to solve a cryptographic hashing function that any node on the distributed bitcoin network can participate in.
As soon as a solution has been found and verified via a consensus proof algorithm, a new block is added to the Bitcoin ledger that spreads across the entire network. Solving these hashing functions requires a lot of computing power. The higher the computing power, the more electricity is required.
This applies to almost all cryptos. The difference between Cardano and Bitcoin / Ethereum is the algorithm-proof-of-consensus algorithm that every crypto uses.
Both Bitcoin and Ethereum use largely inefficient proof-of-work algorithms, which are basically competitive “winner-take-all” processes. Essentially, you have dozens of miners all competing to solve a single hashing function.
The miner who solves it first will be rewarded. The rest get nothing. Of course, this winner-take-all approach means that the computing power of all inferior parties is wasted in proof-of-work algorithms.
On the other hand, Cardano uses a “unique” proof-of-stake algorithm.
Proof-of-Stake turns the competitive game of proof-of-work methods into a collaborative game where a person can mine or validate block transactions based on their “stake” or the number of coins they hold. Each person does this independently so that no parties lose and no energy or electricity is wasted in the validation process.
Proof-of-stake cryptocurrencies are far more computationally efficient and environmentally friendly than proof-of-work cryptocurrencies.
Because of this, the ADA coin – as evidence of its use – outperformed both BTC and ETH after Elon commented “cryptos are bad for the environment”.
Green coins will outperform in the short term
The crypto market today is almost entirely about sentiment and headlines.
I imagine the mainstream media, several news outlets, and several financial analysts will be delving into Elon’s comments over the next few weeks. You will analyze whether Bitcoin mining, proof-of-work cryptos and NFTs are actually the “gas guzzlers” of this generation.
In this respect, the environmental impact of cryptocurrencies will remain in the headlines and among investors for the foreseeable future.
As long as this is true, green coins are likely to outperform. And because investors are very scared of investing in obscure tokens, you’re going to get a ton of people piling into the most famous and well-established green coin out there and that is Cardano.
Accordingly, I assume that the ADA coin will outperform in the short term. Also, I’m optimistic about what I call the “PayPal of Cryptocurrency”, a tiny crypto that could turn into the “Blockchain GitHub”. I cover these and many other topics in my daily research project Daily 10X.
Conclusion on ADA coin
Proof-of-stake cryptos – like Cardano – are much more environmentally friendly than proof-of-work cryptos like Bitcoin and Ethereum. And that could be a big difference as the broader cryptocurrency market splits up over the next few months, dividing between winners and losers.
However, the ADA coin is far from the only proof of stake crypto that is worth investing in today. In fact, it is possibly the least exciting and least explosive proof-of-stake altcoin on my buying radar right now.
Which ones am I more happy about?
As already mentioned, I only offer in my exclusive research platform, the Daily 10X stock reportA potential 10x stock selection (or altcoin) is highlighted here on each trading day. Our service has already grown 10x in stocks like NOK (NYSE:NOK), Plug in the power supply (NASDAQ:PLUG), and MindMed (NASDAQ:MNMD). I think our next group of 10-time winners will be the cryptos that we are highlighting right now.
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At the time of this writing, Luke Lango held positions (neither directly nor indirectly) in the securities identified in this article.
Luke Lango uncovers early investment in the hypergrowth industry and puts you on the ground floor of changing global megatrends. His Daily 10X Report achieved an average of a ridiculous 100% return about all recommendations since it started last May. Click here to see how he does it.
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