Cardano has constantly promised to deliver an environmentally friendly, cheap or in one word “better” ecosystem for transactions. However, it hasn’t lived up to many of these (over)promises and underdelivered. This has caused many of the fans and investors to doubt this project and ask the question: “Is Cardano a Lie?”
- This crypto beats the giants in one main area.
- Cardano’s development plan is to work on a network that users can awlays count on.
- A wave of decentralized apps will deploy Cardano in 2022.
- Cardano can take market share from Ethereum due to its advantages in the technological aspects.
- Cardano receives much hate in the crypto (and especially altcoin) community.
- The coin dropped around 60% in the past week. (at the time of writing)
- Other Layer 1 solutions like Solana, which are younger than Cardano, are ahead of the game.
- The Cardano project was funded in 2016 but it is still a work in progress.
If you are asking yourself: “is Cardano a Lie?” and are thinking it might be a ‘scam,’ then keep reading this post. We have provided an overall review of the project’s activities and how the Cardano ($ADA) price can change in the future.
What you’ll read in this article:
- Let’s see what Cardano (ADA) is.
- lace at the Cardano white paper
- The Good Side of Cardano
- Is Cardano a Lie?
- Price predictions for Cardano
- Main takeaways: is Cardano a lie?
Let’s see what Cardano (ADA) is.
What is the Cardano blockchain? What is the ADA coin? One of the important topics to know is that Cardano is the network; ADA is the cryptocurrency.
Cardano is a blockchain, and the people behind it constantly emphasise how they base what they do on R&D (Research). The organisation wants everyone to notice how the project is based on research by publishing peer-reviewed papers.
Charles Hoskinson established Cardano in 2016 at it was launched in 2017. Hoskinson was one of the founders of Ethereum. However, Cardano was created to help in the world of decentralised finance (i.e. DeFi).
The concept behind DeFi is, at heart, the concept behind cryptocurrency itself. Many people across the world have access to a mobile phone but do not have a bank account, and DeFi is designed to enable them to access financial services without having to go to a bank. DeFi also helps people send money internationally without having to pay commission, which makes transferring money across boundaries easier and cheaper.
A glace at the Cardano white paper
The ‘Why we are building Cardano: a subjective approach’ document was first published on 2017, and it briefly mentions the motivation behind the development of the protocol.
As the white paper discusses: “ [the Cardano Project] is a project that began in 2015 as an effort to change the way cryptocurrencies are designed and developed.”
According to the whitepaper, the Cardano project differentiates itself from other protocols by:
First, unlike successful protocols such as TCP/IP, there is little layering in the design of cryptocurrencies.
Second, there is little appreciation for prior results in mainstream cryptographic research.
Third, most altcoins have not made any accommodation for future updates.
The Good Side of Cardano
There is a plethora of cryptocurrencies out there. However, only a few have offered enough promise to make their way up the market-value charts.
And one of the popular players is Cardano ($ADA). This cryptocurrency is one of the biggest by market value, according to CoinMarketCap, and it’s climbed more than 710% so far in the year 2021. Also, the price of Cardano went beyond 2$ in the early days of Feb 2022 but is now again at the 1$ margin.
The main problem Cardano solves
The main issue with cryptocurrency transactions has been speed. Ethereum currently processes about 30 transactions per second — an upgrade in 2022 should increase that to 100,000. Right now, Cardano beats Ethereum and many others. It processes about 250 transactions per second.
However, many are asking the question “is Cardano a Lie” and the main reason for this is because they think 1) ETH will crush ADA, and 2) Cardano has not yet delivered many of the things it has promised.
Nevertheless, Cardano is working on getting faster – even faster the Ethereum network after its new updates.
The Hydra launch is expected at some point in 2022 and could push Cardano much higher. More significantly, The Hydra gives Cardano a reason to gain more value in the long run.
Cardano has set out a five-stage roadmap with details of how it will get to its final goal of becoming a self-sustaining, completely decentralized network. At the moment, It’s working on the last two sections of this roadmap.
The cryptocurrency also relies on peer-review (that is, a scientific way of publishing papers and reports) before applying any changes and updates. The peer-review process takes time and may slow down this project’s progress.
Is Cardano a Lie?
Cardano’s criticism can be organized into three main points.
- First, the blockchain cannot handle transactions from its current user base. After SundaeSwap deployed it congested the blockchain and the protocol listed transaction delays of up to 16 hours.
- Next, smart contracts were supposed to come out for a long time and were continuously delayed, instilling distrust in investors.
- Lastly, Cardano is a research project that overly focuses on theory and ignores utility. This means that investors cannot invest in projects as they do not exist.
This criticism comes from investors in the other “Ethereum-killer” blockchains such as Solana, Avalanche, and Harmony One. These coins share a similar goal with Cardano as being a fast and cheap alternative to Ethereum.
Peeking into their website — which to me looks like it’s mostly fluff marketing words — Cardano plans to be secure, scalable, and a blockchain that’s gonna “change the world.” The problem with too generalized claims like this, it makes anyone critical enough to ask, “Ye, but how exactly?”
Their roadmaps page includes promises that there will be smart contracts. They also promise a highly scalable chain. Meaning, it will be better than Ethereum because it can process more transactions per second and handle many dApps without the network being congested.
It all looks fine and dandy, but here’s a fact:
- Cardano is still a work in progress.
The project is funded in 2016. It’s been almost 6 years since. (Their excuse is that “research” takes time.)
As shown on the screenshot above, there is no Cardano category on dApps ranking. It’s an unborn chain with no clear due date.
Price predictions for Cardano
Another way to answer the question: is Cardano a lie? is to take a look at the chart and see where the price is heading.
- Technical analysis of the ADA chart: View the high-quality photo via this link.
Based on the technical analysis of the chart at the time of writing (14 Feb 2022) if in the upcoming 14 days the price of ADA does not hold the support level, it is expected to drop below this level and lost its value even more.
Overall, cryptocurrencies are hard to value; because the industry is a new one. Therefore, to make an estimate we can compare ADA’s market cap with other similar currencies.
Many believe that ADA will return to the top three by market cap behind Bitcoin and Ether. This implies that ADA will reach $2.50. But there is a discussion as to when this price might be achieved. 2022 or 2023?
Another price prediction is from DigitalCoinPrice. According to the website, in 2022 the ADA price could be $1.57 in March and go up to $1.59 in April. The website also suggests that ADA will be worth around $1.68 in December.
Please note that you should always do your own analysis and research before investing in any coin. If you’re seeking to understand “is Cardano a Like” or not, this article has hopefully been helpful for you. But if there are any other questions you might have, please ask them below in the comment section.
Main takeaways: is Cardano a lie?
So what’s the answer? is Cardano a Lie? While a lot of investors and crypto fans think that the Cardano’s technology will not achieve its main goal, as you read in this paper, there are reasons why this might not be the case.
Needless to say, these pioneers will be the first look into what Cardano has to offer. In the market, slow development is not attractive when investors are aiming to make 10x profit. Nevertheless, it will gain their interest in the long run.
Patient users should take advantage of the overly-bearish attitude towards the Cardano network by buying ADA.
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