Bitcoin’s Rise and Cardano’s Struggle
Bitcoin has surged nearly 290% in the past two years. Its price jump comes from factors like the launch of spot-price ETFs, the halving event last April, and the Trump administration’s crypto-friendly policies. Bitcoin also attracts institutional investors seeking alternatives to gold.
Cardano, on the other hand, hasn’t kept pace. Its current price stands at $0.68, down 9.32% recently. While Cardano has produced millionaires since its debut eight years ago, it has fallen behind both Bitcoin and Solana.
Why Cardano Still Holds Potential
Unlike Bitcoin’s energy-hungry proof-of-work (PoW) system, Cardano uses proof-of-stake (PoS). This method allows users to “stake” tokens and earn rewards while consuming less energy. PoS systems like Cardano also support smart contracts, enabling decentralized apps (dApps) and NFTs.
Cardano boasts two key advantages over Ethereum:
- Faster Speeds: Up to 1,000 transactions per second (TPS), compared to Ethereum’s 600 TPS.
- Predictable Fees: Transaction costs depend on size and computing power, unlike Ethereum’s volatile gas fees.
Additionally, the recent Chang Hard Fork upgrade has improved Cardano’s speed, security, and scalability. Grayscale’s application for a Cardano spot ETF could further boost its appeal among institutional investors.
Challenges That Cardano Faces
Despite improvements, Cardano struggles against Solana. Solana’s proof-of-history (PoH) system allows for an average speed of 5,000 TPS, with a potential of 65,000 TPS. Plus, its transaction fees are a fraction of Cardano’s—just $0.00025 compared to $0.1642.
Ethereum isn’t standing still either. Founder Vitalik Buterin plans to increase Ethereum’s speed to 100,000 TPS, which could squeeze smaller platforms like Cardano.
Should You Choose Cardano Over Bitcoin?
Bitcoin’s scarcity and institutional backing give it long-term appeal. Cardano, while faster and cheaper for some transactions, lacks the same level of investor confidence.
Although Cardano’s price might see short-term gains from policy shifts or ETF approval, it remains a speculative altcoin. Bitcoin, with its clear growth trajectory, still holds a stronger position for long-term investors.
Final Thoughts
Switching from Bitcoin to Cardano might seem tempting for those chasing bigger short-term gains. However, Bitcoin’s established status and steady growth make it the safer choice. Cardano offers potential but comes with higher risks in today’s competitive blockchain landscape.
4o
