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Cardano (CCC:ADA-USD) has suffered a downturn. A cursory glance at the price chart shows this. He has been in the bear sanctuary since the beginning of September.
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But if you’re like me, you’d think Cardano is one of the altcoins with solid long-term prospects. These are still the early days of cryptocurrency. One of the most important things is to simply understand projects, decide that you believe in their goals, and hold on to them when you do.
Over time, many Altcoins will multiply in value. The problem is that it is difficult to separate the Ponzi schemes from the legitimate early blockchain champions. However, it is most useful to understand the philosophy and goals behind projects. Separating the wheat from the chaff has a lot to do with communicating goals early on.
Cardano shines with its plan for success
Cardano is arguably the most philosophically complete crypto project there is. If you’ve ever wondered what cryptocurrency and blockchain really are, check out Cardano.
The purpose and roadmap on the site actually communicates a project that you, I, and everyone else can understand. By this standard, the entire project is by far the best-communicated altcoin company in my eyes.
It doesn’t necessarily say anything new – in fact, it could be argued that they are the same platitudes that make many suspicious of crypto in the first place:
“Cardano is built by a decentralized community of scientists, engineers and thought leaders who share a common goal: to create a technology platform that will bring about the positive change the world needs. We believe that the future shouldn’t be determined by the past and that more is possible – and technology can make it possible for everyone. We don’t measure the value of a task by its challenge, but by its results. “
That probably sounds as vague to you as it does to me. But the more I read about Cardano, the more confident I am that it has great chances of success in the long run.
I keep going back to this roadmap as I try to delve into the cryptocurrency revolution. Basically, there is nowhere to go if you don’t have a plan on how to get there. Cardano’s roadmap is just that: A plan for success.
It will continue to sway along the way, but it will also keep moving forward. Cardano only recently entered the third of five stages – the Goguen era. And that’s all about the smart contract functionality.
Smart contract functionality
Cardano entered the third phase of its five-phase plan just a few months ago. It completed the Alonzo hard fork on September 13 that introduced Plutus-powered smart contract scripts. However, despite the craze for the addition and a successful hard fork, ADA has essentially lost value since then.
The decline broadly correlates to a few things. First, Bitcoin has been volatile in the past few months. Cardano generally moves with Bitcoin prices, but that doesn’t explain the general downturn.
Cardano had other problems too. At the end of November, the Israeli cryptocurrency exchange eToro announced that it would take Cardano off the exchange by the end of the year. This was another factor that served to take Cardano deeper after the Alonzo hard fork.
My point here is this: Cardano is in a bearish phase. However, it remains one of the most basic cryptocurrency projects out there.
What to do with Cardano
Long-term investors interested in cryptocurrency will struggle to find a more logically structured crypto project than Cardano.
That will not change despite the current bear market that surrounds it. If anything, there is great buy-the-dip narrative going on in Cardano right now.
At the time of this writing, Alex Sirois held (neither directly nor indirectly) positions in the securities discussed in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing guidelines.
After giving up the early mornings and late nights as an analyst for a Life in Sweatpants, Aaron Levitt has been an investment and personal finance writer for nearly fifteen years. Aside from his contributions to InvestorPlace, his work can be found on Investopedia, Kiplinger’s Personal Finance, and the Miter Media family of websites. You can follow his picks, pans, and general market considerations on Twitter via @AaronLevitt.
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Why I’m Beate the Drum of the Cardano Long-Term Philosophy first appeared on InvestorPlace.
