With the crypto market appearing to crawl out of the bear market trend that underscored 2018, it is a good question to ask if Cardano will be a good investment in 2019.
First of all, you need to understand Cardano comprehensively. To wrap your head around the cryptocurrency, do read our A Beginner’s Guide to Cardano.
You may also read: Top 10 Cryptocurrencies for 2019
Cardano, the third generation cryptocurrency
Launched in 2017, Cardano is presently the world’s 11th largest cryptocurrency by market capitalization.
While Bitcoin is widely considered to be the first generation of cryptocurrency, Ethereum is recognised as the second generation.
Ethereum unravelled the real potential of the distributed ledger technology of Blockchain through the introduction of smart contracts. Smart Contracts can be defined as programs which run automatically on the Blockchain when a certain set of conditions are met.
In the scheme of things, Cardano is considered the third generation Blockchain.
You can also read our article Cardano Blockchain Explained to gain an in-depth understanding.
Essentially, Cardano was developed to overcome the drawbacks associated with other cryptocurrencies in the market. It aims to facilitate fast, peer to peer transactions, and also serves as a platform for the development of financial applications.
You may also read: Cons and Pros of Cardano
Cardano price prediction 2019
Cryptocurrencies can be speculative and volatile in nature. Hence, determining their future price can become tricky.
To determine the price of Cardano in 2019, it is important to go through the various factors that could negatively or positively impact the price of this crypto.
Factors affecting the price of Cardano
Cardano is built on the extremely secure Haskell programming language. This is a major plus point for the Blockchain.
As compared to Ethereum’s time-consuming smart contracts, Cardano is much simpler for developers, as well as users.
The specially designed wallet for Cardano cryptocurrency is also much more user-friendly.
Cardano is easier to update through soft forks. It avoids the cryptocurrency from becoming outdated.
While Bitcoin and Ethereum both suffer from the problem of expensive and slow transactions, Cardano, on the other hand, offers negligible transaction fees.
When it comes to the negative influencers on the price of Cardano in 2019, there are some points to note.
Ethereum is a major competition to the Cardano Blockchain.
The Ethereum Blockchain is used more widely for the programming of Smart Contracts. And with Ethereum planning to resolve scaling issues and launch an efficient proof-of-stake mining system, Cardano faces some stiff competition.
Another negative aspect is that Cardano endeavours to become an all-in-one digital currency. Many currencies in the market have been built for specific use cases.
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Could Cardano’s ‘jack of all trades’ branding affect it negatively or help it claw to the top of the charts. Only time will tell! To understand more on how Cardano stands against its biggest competition, do read our article Ethereum Vs Cardano – Which One is Better?
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