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What’s the difference between an altcoin and a bitcoin- Investing in Cardano?
Bitcoin (B) was the first cryptocurrency to emerge and has seen huge growth since it first appeared in 2008. Minor changes were made to Bitcoin (B) which resulted in the arrival of Altcoins. Altcoins are essentially alternatives to Bitcoin (B). While there’s only one Bitcoin (B), there are thousands of altcoins in the cryptocurrency sector. Some of these coins were built for different purposes than Bitcoin. While Bitcoin(B) is still on the uptrend, it’s an expensive trading option at entry level. Altcoins are often a less expensive choice and have lower volatility. Investing in Cardano
When did Cardano (ADA) first appear?
Cardano (ADA) was developed between 2015 and 2017. Its development is based on research and scientific principles. The reasons why it’s an interesting investment consideration are listed below.
- Cardano (ADA) is supported by Ouroboros, a unique proof of stake algorithm which uses mathematical calculations to validate transactions and eliminates the need for mining. It also makes it highly secure.
- It’s multi-layered and facilitates smart contracts and DApps (Decentralized Applications).
- Cardano (ADA) is open source and has no patent.
- It supports up to one million transactions per second.
- Cardano (ADA) has multiple uses and is scalable.
- Scientific and research basis makes it stable and highly reliable.
- Cardano (ADA) is efficient and has a low carbon input.
- It’s community run and not controlled by a parent company.
- It’s transparent.
Drawbacks of Cardano (ADA)
- The research applied in its development took time and it may evolve slowly.
- It hasn’t been widely adopted yet though Pricewaterhousecoopers and Wolfram Alpha are partners.
- It’s volatile.
While all investments incur risk, Cardano (ADA) with its sustainability, an important trend of 2022 is definitely a cryptocurrency that merits attention.