When looking at cryptocurrencies that are only trading for a few dollars – or even pennies – a token, it’s hard to imagine that they will become the next Bitcoin (CRYPTO: BTC). After all, this cryptocurrency star recently passed the $ 60,000 per coin mark. But it’s important to remember where Bitcoin started. The world’s first cryptocurrency was only worth about eight cents when it debuted in 2010.
That means it’s entirely possible that newer, low-rated players might take a similar path today. Of course not all of them will. Hence, it is important to carefully examine the characteristics of each one before making this type of bet. At the moment I think that one cryptocurrency has a particularly good chance of becoming the next Bitcoin. Let’s find out which – and why.
An experienced founder
I’m talking about Cardano (CRYPTO: NO), the cryptocurrency developed by Charles Hoskinson. He is also the co-founder of Larger Player ether. This is definitely a good sign. That’s because it means credibility and experience in the field. We could imagine that Hoskinson would take what he learned in the Ethereum project and bring these valuable lessons with him as he worked on Cardano.
What is Cardano? It’s a blockchain network with its own coin called “ADA”. Cardano can handle smart contracts or contracts that execute themselves if certain conditions are met.
And most importantly, Cardano can securely store information for many purposes. In healthcare, for example, it can track the origin of pharmaceutical products – making it difficult for counterfeit drugs to get into your medicine cabinet. Or in agriculture for tracing the origin and quality of products. In finance, Cardano aims to be a decentralized system that could bring banking to people anywhere in the world. This variety of applications could make Cardano a popular platform in many industries for many more years to come.
There are a few other points that make Cardano particularly interesting – and which can lead to a significant increase in value in the future. First is the transaction speed. Cardano can really win here. One of the disadvantages of Bitcoin is the number of transactions per second – only around 30. In comparison, Cardano can process 250 transactions per second. And it’s working to take that even further.
An environmentally friendly option
Another plus is the environmentally friendly profile of Cardano. This crypto player consumes the equivalent of two power plants in terms of energy per year. That may seem like a lot, but it’s actually very little compared to the crypto leader Bitcoin. During the same period, Bitcoin uses more energy than the Netherlands to run its operations.
Finally, two more elements can fuel Cardano’s success. And that has to do with the research and quality behind the platform. Cardano uses peer review throughout its development process. This means that academic colleagues have to review all changes to the Cardano platform – and give the OK – before these changes are applied.
Speaking of the development process, it is underway. The platform’s developers have started a five-phase program to bring Cardano to the highest level. The ultimate goal? So that Cardano becomes 100% self-sufficient.
So Cardano may be on its way to becoming everything Bitcoin is – but better. Today Cardano trades for about $ 1.80. The notion of a price of $ 60,000 may seem far from such a starting point. But Bitcoin has proven that such a path is possible. And given all of the perks that Cardano has to offer, this fledgling cryptocurrency could stand a good chance of becoming the next to follow it.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.