Reasons to Hold Cardano ADA Long Term
Good afternoon folks, I’m the operator of Adazul Brasil Pool [ADABR].
It’s been a while since I wanted to put up a post like this and now with the break of ATH, here it goes ..
The text can be a little long but it only shows how Cardano in THIRD is very far from being speculation, momentary or artificial pump. Cardano is a very well thought project.
As you already know, this is not an investment recommendation, but only what I think about Cardano project in the long run.
1 – Year 2021+ bullish market due to the roadmap as a whole.
2 – Cardano exceeding expectations regarding delays. However, delaying a good project is much better than rushing a bad project. There was a recovery in market confidence during the Shelley era.
3 – Second stage of three (2/3) of the GOGUEN era will be launched now March 1st on the main-net. These are NATIVE TOKENS at Cardano, unlike its direct competitor Ethereum, native tokens will not need to be created via smart contracts, but via a monetary policy script that will dynamically define rules for creating and burning tokens. In other words, tokens that will be created on the Cardano blockchain will not have a gas system resulting in infinitely lower fees than your competitor. Another factor is security, as the tokens that will emerge are not generated by smart contracts, all tokens will have the same security as the Ouroboros protocol. All of these reasons and more will attract many dapps developers to Cardano, consuming rival market caps and attracting foreign investment.
4 – The GOGUEN Era has a roadmap with more than 30 sprints, resulting in several ‘mini-launches’ and good surprises along the way. This creates a bullish climate for every ERA-related month.
5 – Total decentralization of the blocks production of the pools will occur on March 31 at epoch 257. Currently 83% of the blocks are produced by the pools, after epoch 257 all the blocks produced will have been generated by the pools. This generates more bullish weather in March and for the future.
6 – The Cardano Eras are NOT delivered in a linear fashion, this means that major updates are worked on and delivered in parallel with the development of the project. This generates constant deliveries along the way and consequently increases the market value.
7 – More than 70% of all ADA tokens are currently delegated to stake pools. This results in a greater shortage of ADA tokens in circulation and also creates low price volatility. The tendency is for this value to increase as people are being educated in Cardano.
8 – Having passive gains with the best existing proof-of-stake protocol (Ouroboros), you invest in ADA so that it generates more ADA. Unlike proof-of-work where you need to invest in hardware to mine, in Cardano the investment in the currency itself generates new currencies, in addition to the market appreciation. This creates yet another incentive to hold.
9 – Be part of a stake protocol that does not hold your coins, unlike other protocols that when you stake your coins are stuck for days or even years. And you can still do it directly from your wallet without the risk of sending your ADAs to anyone. Coins never leave your wallet and never get stuck. This will attract many people to the protocol.
10 – In the near future it will be possible for a single wallet to delegate to multiple pools, this will further increase the power of decentralization and the market will see this very positively.
11 – Cardano uses HFC (Hard Fork Combinator) which means that all large deliveries that require changes in the protocol will be delivered simultaneously without crashes or restarts. This is very well seen by the market as it does not generate fear or concerns about how the blockchain will behave post or during major updates. An example was the shift from the Byron era to the Shelley era.
12 – Along with the GOGUEN era, the Cardano project invests heavily in frameworks, tools, languages and business models so that it is extremely attractive for developers and investors to start projects or migrate to Cardano. An example of this are Plutus, Plutus Core, Haskell Language, MARLOWE, KEVM, IELE .. I will not go into each one as it would generate a long content. Just keep in mind that the Cardano project is designed to attract as many devs, projects and ideas as possible, this is very positive for the market as migrations to Cardano are becoming natural due to so many benefits, it is just inevitable.
13 – Voltaire, the governance era. As already said, the eras are developed in parallel and the Voltaire era promises as much as the others because it will bring a voice to any individual who holds ADAs. In other words, in this era individuals will be able to use their stake to vote on projects and even changes in the blockchain itself. This makes the project sustainable over time, adapting to the needs of the coming years.
14 – In the Voltaire era, we will have the treasury. A small fraction of the fees for all transactions will go to some kind of ‘public treasury’ that will store the funds to invest in projects voted by governance. Imagine how attractive this is for people with smart ideas who don’t have the money to start their projects. It even becomes an incentive for projects to migrate from other blockchains to Cardano due to the strong focus on keeping projects on the network sustainable.
15 – Intense scalability of transactions with the implementation of Hydra. There is no specific date yet, but Hydra will bring a second layer over the layer where the PoS consensus is used. In other words, with Hydra each pool will have the ability to add a new ‘head’ (analogy to the mythological Hydra head) to handle transactions, each head would have the ability to handle 1000 transactions per second (TPS). If we multiply by the number of current pools Cardano would be able to handle more than 1 MILLION transactions per second. For comparison, VISA processes around 2000 transactions per second. Imagine when the market understands this.
16 – And most importantly for short-term investors – ADA is not listed on CoinBase yet. This is definitely a positive point for anyone thinking about investing in the long and short term. Listing in another exchange may add up to millions of dollars in Cardano’s market cap
Something missing? Any corrections? Do you have your own reasons? Leave it in the comments!