Is Cardano ADA a worthy investment in 2022?

Is Cardano ADA a worthy investment in 2022?

This TabStocks article considers the pros and cons of Cardano ADA to discover if Cardano is worth an investment in 2022

Cardano is among the emerging cryptos that have gained a lot of attraction.

It belongs to a class of cryptos known as Altcoins which stands for Alternative coins, other than BTC.

The crypto industry is moving fast and mass adoption of these coins is occurring at a staggering pace.

Just a few years back these new coins were disdained as ‘shit coins’ by believers of Bitcoin (BTC) as the single standard of crypto.

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Cardano has witnessed a massive downtrend from its peak of $3.13 in September 2021.

It has declined by over 85% now sitting at $0.52

Will ADA bounce back higher, given its strong fundamentals?

Pros on Cardano Ada:

Competent Founder

Charles Hoskinson, its founder was also a co-founder of Ethereum, thus well-versed in the crypto world.

He formulated Cardano as faster rival to Ethereum and maybe a fierce competitor in the coming days.

Strong underlying technology

The economics of the coin (tokenomics) makes sense with only 75.5% supply of minted at the moment out of maximum 45M.

Cheap Cardano ADA price

The token has been a bargain since inception.

This is to make it attractive to investors over the big tokens like Ether & BTC.

If it does rally, returns will be exponential due to the low prices.

Proof-of-Stake protocol

This is one of Cardano’s most potent arsenal as it validates transactions better and more energy-efficient than Bitcoin’s proof of work mechanism.

This has earned it a reputation of being eco-friendly crypto in the blockchain space.

Hydra scaling solutions

Hydra is layer 2 technology that could make ADA, the fastest cryptocurrency ever.

This works via off-chain transactions. This could similarly make ADA more useful solving another problem they face.

Peer-reviewed research

Cardano has over the years built a team of ingenious academic experts.

This has enabled development of solutions that are tested, proven and more efficient than its competitors.

Superior transaction model

Ada’s Extended unspent transaction output is advantageous over Ethereum’s model because; it forecasts whether a transaction will go through.

And pre-calculates the fees before being sent.

When taking into account transaction volumes Cardano is in third place. And costs way exponentially less than other coins.

Cons of Cardano ADA:

Slow growth and unpopularity

ADA was late to the market and has consequently not gained mass adoption.

Research is time-consuming and they only launched they smart contracts last year in 2021.

Volatility and Economic uncertainty

We are in unprecedented times and emerging assets like crypto are perceived as high risk/high reward.

A proper valuation cannot be placed on Cardano ADA or where the market will head.

Stiff completion

ADA is up against many other altcoins which promise to deliver faster and better.

The entry of Wallstreet into crypto has been attributed to cause the crash as they are known to manipulate markets.

Hard forks

Hard forks impacted it negatively and critics say Cardano ADA lacks utility.

ADA is capable of becoming the third largest crypto if it does scale to mega levels.

There underlying tech is unmatched and leading the industry. Hopefully, Cardano ADA will overcome the odds.

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