Proper Justifications For Cardano’s Valuation


The Cardano’s system is one of the latest inclusion in the cryptocurrency world. It came with a lot of ambitions and pedigrees in September 2017. The cryptocurrency of Cardano’s system is ADA. It is considered a third-generation system, with Bitcoins and Ethereum taking the first and second generations. Many people are amazed at its facilities and are considering investing in this system.

The Cardano DEX system comes with impressive ambitions. However, it is also associated with different flaws that are common in other cryptocurrencies. In spite of having several pedigrees, the system hasn’t been able to show many implementations. It began with a limited set of nodes that are controlled by a single foundation. There are several points to consider in the valuation of Cardano’s system.

The present situation of the protocols

The Cardano system began with a set of protocols and procedures. One such protocol is the data scaling effort.  However, Hoskinson predicted that such efforts would not produce effective results till 2019, 2 years after its release. Most of its other protocols are in the standardization stage, and a lot of research is being carried out in this regard. The implementation of its result depends on the growth of the use of the Cardano system. A lot of proof is still required regarding the implementation of its technology.

The implementation of the Proof of stake model

The Proof of Stake model is one of the major attractions of the Cardano system. This feature will do away with the implementation problem associated with other cryptocurrencies like Bitcoin and Ethereum. However, several critics consider that the approach based on this model might end up in plutocracy. In such an outcome, the nodes that have the highest stakes will govern the outcome of the system. However, the Cardano system prepares to conduct its research for proper refinement of its algorithms.

Cardano’s ADA aims to provide a complete version of its technology by the second quarter. A proper evaluation of its technology will be possible after its release.

Competition from other cryptocurrency sources

Although the cryptocurrency business has started recently, many companies have been able to foresee the outcome of such a scenario and have invested in the system. All these companies are in constant competition to outshine others. For example, Litecoin, an offshoot of the bitcoin system, aims at a similar role with respect to daily transactions. The major inspiration for Cardano’s approach to governance is Dash, which has similar aspirations as that of Cardano’s. Ripple aims at providing a bridge between cryptocurrencies and the existing financial system. Such an approach will sound like strong competition for Cardano.

Since the Cardano system is in its initial and preparatory stages, its price evaluation might not be wholly justified. Neither is it right to get swayed by its ambitions. Nor will it be a proper approach to dismiss its valuation as a floating bubble. The pricing of every cryptocurrency system depends on the future market it makes. The Cardano DEX system will be able to garner enough users to support its growth and will also be able to ensure profit for them.