Market Waves and ADA Research

How about it, guys and gals! Good job not throwing your computers out of the window and hodling on. I wish I could tell you anything about why we dipped into the BTC four-figure category, but my guess is as good as yours. The cryptocurrency markets work according to fear, and if you stand up to the virtual lion you can make a lot of money. Everything in my last article is up roughly 20-40%. That isn’t my expertise in crypto picking, the wave just came in.

Nobody knows when it will come back again, so you have to trust your price picking. Everything became not-so-attractive within a morning trade. By the time I looked on the exchanges, everything was low, but not so low that it was attractive to buy. The market tests all of us. We just dropped for regulation whispers. Regulation enforcement could rock this ship off course again, which is why profit taking is so important. I am not telling you to go buy a nice new couch. I am telling you that you saw how quickly a 30-40% gain can happen. When the wave goes back out to sea, that’s when you jump in. I am always ready.

Let’s see, of the unattractive prices, I have been inundated with social media buzz about ADA. I have previously owned some appreciated ADA ,which was wonderful. Speculation can have treasures. However, I became very skeptical of high supply coins, and lessened my exposure. As I continue to learn as quickly as I can about this crazy world, the “P” word came up about ADA, which intrigued me.

ADA

Charles Hoskinson is a very smart man who was part of the Ethereum project, before a difference of opinion drove him out of the loop. He left to work on the Cardano project. IOHK is his development arm that has been contracted to develop Cardano. Emurgo is the commercial arm that supports the business applications on Cardano.

Difference of opinion people are double edged swords. Just like our old pal Jed at Lumens, the divergent characters can be the ones who open the gates of Valhalla through innovation, or the gates of Hell through hubris. I won’t be able to tell you who Charles is yet, because there simply isn’t enough information. From the things I have listened to, he is a very intelligent man with very distinct goals (plural).

Cardano is an Ethereum-like platform that has advanced smart contract technology, and a unique technical infrastructure. About 97% of the ICO volume was from Japan, and many people are speculating its wide scale adoption through ATMs and payment systems in one of the most tech savvy places in the world. Those are big goals.

Nuts and Bolts

Proof of Stake: This is a much faster, streamlined, and energy efficient method compared to proof of work. When you see people running mining farms and having to calculate electricity costs, you can’t think that this is going to be a sustainable way of doing business. China has been kicking energy hogs out of the country, and I don’t know why we go two steps forward with blockchain, but one step back with big fans and mining farms in low cost areas. It just doesn’t seem like something that is going to carry forward, at least in the way it is being done now.

Ouroboros and the Epoch System: Scheduled mining. The Chain is divided into Epochs. Those Epochs are divided into slots. Not everyone can mine slots at once, and they elect slot leaders who can mine a specific block in their “slot”. I believe this regulated way of mining allows the miner to not to have to play (and cost) the equivalent of an entire Metal Gear Solid story map (12 times in a row) to get anything done, while also giving Cardano the ability to scale it at their own pace, by making more slots in each Epoch, or making more Epochs to fill with slots. That’s the deepest technology jargon you will hear from me. I am attaching the link of a wonderful explanation that would do it 100 times better than I.

Network System: Instead of all data needing to go to all nodes, they have networks of nodes that will store local information to the network, but with the added ability of communicating with other networks. This sounds like the internet of/for miners. Just like the internet in the 1990s, it all has to start with the tech people talking to each other on it. Back then, it was the government. However, people came along and designed software and web browsers that made it a public product, and not a technical one. I am hoping local miner communication/storage is just the beginning of the use of this infrastructure on the blockchain.

Treasury System: This was a fantastic business idea. For each transaction, Cardano places a portion of the revenue into a smart contracts based treasury. The treasury awards money based on people submitting improvement proposals to the network, in which their peers will review their proposal and vote on the ones they believe will most benefit Cardano. If there is a smart contract designed to award money to innovative people in perpetuity at Cardano, I wouldn’t see why someone wouldn’t keep coming back to the well that always has water?

Goals, Goals, and more Goals

“Cardano is home to the Ada cryptocurrency, which can be used to send and receive digital funds. This digital cash represents the future of money, making possible fast, direct transfers that are guaranteed to be secure through the use of cryptography.

Cardano is more than just a cryptocurrency, however, it is a technological platform that will be capable of running financial applications currently used every day by individuals, organisations and governments all around the world.” (Source:https://www.cardanohub.org/en/what-is-cardano/)

There are so many projects within Cardano. I love its goals, but I just want to know which one will make coin holders the most money. Its claim of a “separate computing layer” sounds like the one I like the most for this reason. If we have a long and windy road of being a community coin until we get to business coin, I am not interested. That may not be the case at all, and we begin to see some real commercial use going on. It is quite early.

Conclusion

Overall, Charles has a broad array of global people working for him, making a “better” ADA coin. Right now, I can’t see what a “better” ADA coin is in their minds. There are so many goals listed (Interoperability, Scalability, Sustainability), not to mention sub-sects within the goals. I would love to tell you about target markets and competition, but they are going after everyone! They are trying to design an all-in-one blockchain/crypto that can be the unified solution. I can’t qualify an all-in-one coin on a SWOT analysis.

Time is going to tell us which one of these goals is the focus. Here in lies the bet. I am exposed to ADA, but not in a way I am to the other platforms. With billions in circulating supply, this wasn’t meant to be a gigantic coin like bitcoin. At $0.60, there is certainly money to be made, but this is more a small speculation bet until I hear more about customer types, and primary target markets.

I see a lot of currencies throwing all types of money at technical developers, but not business people. A lot of currencies could brush up their image if they knew how to talk to people who have their coins. If you go on Shark Tank or Dragon’s Den saying your competition is everyone and your market is everyone, you better have a darn good sales pitch. I would start by creating a hierarchy of needs to be completed according to what will derive the most coin holder value, not what is going to be the most revolutionary. Time will tell with Cardano.

 

 

This is not a recommendation to buy or sell cryptocurrencies. I hope this is helping you in your thought process on a flat’ish day so you can reap the benefits of the market at any given time. I hope you make money, but your decisions should never be based on anyone else. I have never heard a rich man say, “I just listened to an article on the internet…and BOOM”. Don’t think that will be you.

Do follow me @raijincrypto on Twitter if you would like to chat on cryptocurrencies.

 

 

 

Author:
Mythological God of Lightning. Cryptocurrency/Blockchain writer, evangelist, and friend. May the odds be ever in our favor.