We'll be reviewing our porfolio in this post, but first I wanted to do a quick review on one of our solid holds in the portfolio, which is Cardano.
Cardano (ADA) is an open source blockchain and currency, which implements some enhancements on Ethereum. That is why sometimes it is referred to as "Ethereum 2.0" or "Blockchain 3.0" (after Bitcoin 1.0 and Ethereum 2.0).
So, what are some fundamental aspects that make this a good long term position in Cardano?
Ready for the future. Cardano implements a new coding language that makes it easier to adapt to future changes needed in the blockchain. This means that it will be able to adapt to changes and needs that may be unimportant now but crucial in the future.
Reliability and ease of use. I have been using The Daedalus wallet of Cardano and I have to say that the software is well built, the transactions are really fast and everything is pretty intuitive. This is a very important aspect in crypto, since it will make it easier for mass adoption in the future.
Proof of Stake. Through proof of stake it will be possible to mine Cardano without having to utilize lots of resources as in a PoW algorythm.
Also, it will be nice to have integration with Ledger Nano S in a few weeks, whick will allow for an easy way to cold-store the coins.
What do you think? Are you considering adding Cardano to your portfolio as well?
Here is the daily HODLfolio update:
More or less a neutral day, as Alts have stopped bleeding and BTC has tested its support at about $9.7K and bounced back to 10.2K levels.
Nice gains from NANO, mostly due to the big news that they have partnered with Twitch to allow payments in NANO to streamers. More adoption on such a big community is really good news for this coin! Nice pick in our portfolio!
See you tomorrow, when 360Trader will announce the 360 Bottom Feeder Portfolio picks!
Cardano is definitely a coin to hodl but it's not easy to use due to it being Haskell. Therefore it's not going to have the adoption of NEO, Qtum or NULS. It's more about the financial markets, like Ripple or Stellar. Focused on specific challenges, specific markets etc. Or that's what I've gleaned from research.
Fantastic portfolio though. Very jealous. Kudos on it.
Thanks for your reply! I will look into the differences in use vs the coins you are commenting here. Also, I have read that Cardano Foundation is developing training materials and courses for Haskell, whick indicates that yes, this can be a big issue for widespread adoption.
Cardano isn't competing with Ethereum or other platforms that need rapid adoption so it can be a unique platform because it's targeting unique problems. It's specifically taking financial institutes and banking to countries that can't support traditional infrastructures. Regardless, ADA is a great coin. It's a great pick.
Cardano, with Stellar (which you have I believe) and Ripple are going to be the bridge between old financial institutes and the future. Hodling them will likely be frugal.
Yes, Stellar is in my portfolio as well! How do you see Ripple? I am unsure of the value provided to the average coin buyer. RippleLabs is getting some nice partnerships with big banks such as Santander, but I think it is unlikely that the actual medium of transfer in the network is going to be the XRP coin. If that is the case, then XRP wouldn't XRP serve only as a financing means to RippleLabs?
Ripple is trying to change the way banks move money around and more importantly, it seems they are winning them over. So unless someone else comes along, bigger, better and stronger than RippleLabs - Ripple will become a major player in the future markets.
This doesn't mean Ripple as a crypto will have any value. It will likely hit $1 - $3 in 2018 but in 2019, 2020, 2021 and onwards it's likely going to stick to that price range. If they do become a major player they'll survive the crypto collapse which will innevitably happen.
By collapse I mean the following:
Cryptocurrencies will live on BUT this happened during the .com bubble and it's naive to think it's not going to happen here.
So building your portfolio around blockchain products that are likely to be majors in the future is theoretically the best avenue as you don't want to be stuck with hundreds of coins during that collapse. It will be swift, come out of nowhere and cause exchange carnage.
This is all theory and my own opinion. I could be very wrong, plus a collapse is likely a number of years away.
I agree very much with your points in your great response!
Regarding Ripple, I agree that the company can do pretty well in the future, but the fact that the XRP coin is not stock in RippleLabs, may leave token holders as investors without rewards, right? The point is that they do not own any part of the company and therefore are not entitled to any benefits coming out from it.
Two very important points in your explanation:
So, what can we do?
Ironically, I had the same discussion with my colleague about how coins aren't shares.
At some point blockchain ideas are going to come to fruition and in business, acquisitions will be rife. Just think right now Ethereum should pick up Quantstamp and not let it migrate to other networks like it intends. It would become another feather in Ethereum's bow.
So if company X buys company Y, what happens to the investors? They get nothing as the coins have no rights, the buying company could say "tough!" and there is no recourse. Imagine that on a company with a market cap of $1.5bn or something crazy...
Or, even worst, if using DPOS, can an investor come in and buy enough stake to take the voting rights to dictate the network? This is how hostile takeovers happen with shares.
This is why I'm confident regulation will occur. Right now it's the Wild West and no one quite realizes how bad it could get once the violence starts. Think back to the .com bubble... Businesses just vanished over night.
I keep saying the future is going to be very interesting... I can't wait.
Coins mentioned in post: