Thousands of cryptocurrencies have hit the market in the past few years. Beyond the great established like Bitcoin and ether, there is now a sea of wannabe tokens vying for use and investors. With all of these options, it can be difficult to pinpoint tomorrow’s more likely winners.
But there are a couple of younger tokens that caught my eye. And I would buy one especially now. It has gained momentum this year – and its leaders have future plans that hold the potential for big gains.
A winner in transaction speed
Created Ethereum co-founder Charles Hoskinson Cardano (CRYPTO: NO) as early as 2015. The plan back then was to build a blockchain with more scalability than the previous players. So far, Cardano has demonstrated its ability to process more transactions quickly. It can process 250 transactions per second, compared to only around 30 for Ethereum. Of course, Ethereum will introduce a net upgrade year that will increase its transactions per second to 100,000. But Cardano could still stay ahead in terms of speed in the long run. The goal is to be able to process 1 million transactions per second in the future.
Another positive point is the method of development of this blockchain. Cardano not only introduces updates or upgrades directly. First, all changes go through a peer review process. This can slow down the rollout timelines a bit – but it also prevents glitches and other problems. So in my opinion, improvements to the Cardano system are worth the wait.
Speaking of the development schedule: The Cardano team has a detailed plan for the next steps. The roadmap has five stages of development and the last two stages are being worked on at the same time. The end goal is to make Cardano a truly decentralized, self-sustaining blockchain.
Many uses in the real world
When it comes to real world use cases, Cardano is very similar to Ethereum. It can execute smart contracts and therefore host decentralized applications. Cardano’s possible uses in the real world are diverse. In agriculture, for example, the blockchain can help track products from the farm to your dish. And in finance, it can streamline processes like opening a bank account, as verified credentials can be stored on the blockchain for use when needed.
Cardano’s native cryptocurrency is called “ADA”. You can keep your ADA as an investment or use it to send or receive funds. Not all cryptocurrencies have a supply limit, but ADA – 45 billion tokens. This is positive because scarcity can add value.
Cardano is well on its way to ending this year up 600%. But there could be more growth if it pushes its plans forward. It is already the seventh largest cryptocurrency by market value. If it hits its development goals, cryptocurrency could become even bigger, and its speed and real world usage could keep it at the top of the charts. That’s why it’s the only cryptocurrency I would create right now.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.