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In this episode, Mubarak Shah, CPA of InPenny Stock discusses the Great Ethereum vs Cardano Race: Who Will Be The First To Millionaire Status.
Mileage for those who want to listen on the go: This podcast clocks in at around 7 minutes… so head out for a 1-miler and let Mubarak keep you company.
Overview
LINKS AND RESOURCES MENTIONED IN THE SHOW:
- InpennyStock
- Ethereum
- Cardano
- Ethereum Foundation
- Cardano Foundation
- Coin Gecko
- CoinMarketCap
- Join Our Penny Stock / Crypto University
PODCAST TRANSCRIPT
Ethereum vs Cardano – First To Millionaire Status
[00:00:00] Mubarak Shah: Cardano or Ethereum, which one is going to make you a million dollars first. All right. I guess that is a question that every crypto investor, every crypto trader has on the top of their mind. So, let’s dive deep into it in this episode and understand the differences between cardano between Ethereum. And what is going on there. [00:00:20] All right. Because anyone who follows a world of cryptocurrencies knows and is heard of a Cardano versus Ethereum there’s a frequent comparison there because both networks do provide similar services. They’re using similar functions, such as either with utilization of smart contracts and decentralized applications. [00:00:37] Any of the blockchain networks, cool algorithm can be used to create blocks and validate transactions. And really what’s going on is that the key difference is that Ethereum’s proof of work. Blockchain is less flexible than Cardano’s proof of stake, consensus method. And who knows, maybe that’ll all change with the Ethereum merge going on that we’ve been talking about for a while, but now it seems like in the next couple of months, it’s finally going to occur. [00:01:03] So Let’s look a little bit into the history of it all. All right. In 2015, Ethereum was introduced as a blockchain platform. All right. Ether is a platform cryptocurrency and Cardano was launched. Then two years later, 2017 and ADA is that platform’s cryptocurrency all. So, we have Ethereum and ETH and we have Cardano and ADA. [00:01:24] All right. So Ethereum of course has launched and has been running with a proof of work blockchain. And essentially this requires certain minor. You know, those people who have like computer rigs in the background and these kinds of big storages and kind of cold, complex situations with hardware and graphics cards performing complex calculations on the back end, and then they’re able to kind of win ether. [00:01:48] Running that method. But on the flip side, Cardano has, what’s called a proof of state consensus, which there’s no minors, there’s no hardware running in that old fashion of using energy in order to generate more of that specific cryptocurrency. And instead it’s substituted by what’s known as validators. [00:02:07] Alright, so, all right. So, whereas traditional mining with Ethereum consumes a lot of energy. Meaning like actual electricity or natural resources proof of stake does not. So, in the past ether and really currently ether has kind of considered the silver of it. You know, Bitcoin is the gold ETH, Ethereum is the silver and it’s probably the most utilized cryptocurrencies and Cardano. [00:02:27] On the other hand is one of the most secure digital assets. But it’s been on several downward trends has become relatively cheap, making it an excellent investment option. And the issue though is understanding what’s really going to happen in the long term. Alright. So, you know, Cardano, Ethereum are obviously both important networks. [00:02:47] There’s a lot of developers on both of them, but the key thing is to kind of trying to understand the differences. The visions of them and, and where it’s going to go. Right. Ethereum was created with the intention of becoming a global open source platform for digital assets. Right. And it’s one of the most ambitious, ambitious blockchain projects. [00:03:08] It’s essentially, you know, continuing to grow and really, I think what’s going to make or break the project is this upcoming merge that’s supposed to occur where it’s going to change from a proof of work system that has the minors into a proof of stake system. And so, it’ll be directly competing more with Cardano in that nature. [00:03:27] And so you know, cardano’s primary use cases to allow transactions in ADA to enable developers to build secure decentralized applications. And so the only issue is that they haven’t had as much developer activity as Ethereum has. And even though they’ve done, you know, a lot of major platform upgrades, it’s 2017 Byron, you might have heard of that, not buying, but Byron which allows for the transfer of ADA cryptocurrency Voltaire, which introduces a new model for how users can fund developments for software changes. [00:03:56] There’s a massive difference between the two and obviously they’re run with different organizations or teams behind them as well. Right. Ethereum has Vitalik Buterin, who’s kind of the visionary and of Ethereum and they have the Ethereum foundation that kind of helps run it. And has those types of people, whereas Cardano has something similar. [00:04:16] They have the Cardano foundation, which oversees the development of the Cardano blockchain. And essentially at the time of it’s launched, it was about 31 billion ADA created, which is again that token. And essentially where what we’re going to see is who ends up having a better network design and monetary policy to kind of last and go the distance. [00:04:36] So essentially, you know, from a personal basis, again, this is not investment advice. We do believe that Ethereum is going to be more valuable and it’s been consistently been the second, most valuable cryptocurrency in the, in the last half decade. And even though Cardano has grown in value, it’s still only worth about 10% of Ethereum’s total market cap. [00:04:55] And so, you know, Ethereum technically from a usage stand point. It regularly logs more than a million transactions per day versus Cardano daily transactions are around a hundred thousand and still under construction. So even though Ethereum can be more expensive to use with the transaction fees, you know, exceeding, you know, 20, 50, a hundred dollars during the bull run that we had a couple months ago and Cardano has lower fees. [00:05:19] It just doesn’t have the high utility or the high functionality. That Ethereum seems to have. So as a final bet, what I would recommend is that if you’re going to choose one or the other, Ethereum would probably be the one to put 80% of your funds too, versus 20% into Cardano or ADA. And again, this is not investment advice. [00:05:39] All right, this is purely educational. It’s just something to think about because you know, at the end of the day, we are in a bear market right now. And it’s, it’s, it’s, it’s important to kind of see where you should put your funds and what’s going to be around. After kind of the dust settles, all right. [00:05:54] You know, cardano right now is probably trading around like the 50-cent range, depending on when you’re listening to this. And in, you know, end of last year, end of 2021 around the September, October range, when all the cryptocurrency series were at a massive high Cardano was kind of flirting with the $3 mark. [00:06:12] So, you know, it’s gone down about five X or so. And compared to where it is now, and so it’s just a matter of understanding, like where do we think it’s going to go? But when you compare it to Ethereum, Ethereum is still, you know, the second largest by market cap. So, you know, whereas let’s say if we’re taking a look at, I don’t know, let’s take a look at like, Bitcoin is a 400 billion in market cap, whereas the Ethereum is 150 billion. [00:06:42] Right. And then the next biggest one is tether, which is a stable coin, which is 60 billion. And then U S D C 55 billion. So, you can see that, you know, Bitcoin and Ethereum dominate the market cap. Whereas, you know, again, as I mentioned, Ethereum has say almost close to 150 billion market cap. [00:07:01] Cardano only has about a 16 billion. So, it was only about 10% 11. Of what Ethereum is at. So currently I would put my money behind Ethereum and see that that is probably going to be more of the longer run cryptocurrency. So hope you guys enjoyed that. If it makes sense, then definitely subscribe, leave a review. [00:07:21] If you send me an email at admin that’s ad M I N penny stack.com with a review, you can actually join the wait list for our cryptocurrency trading boot. That only a few members are going to get in, but you’re going to be able to get one on one advice and kind of group Okay. Investing with yours truly Mubarak Shah. [00:07:38] So definitely if you’re interested, subscribe, send me a review at admin@inpennystock.com. Hope to hea from you soon. Take care. This podcast is a part of the CSU radio network. For more top business podcasts. Visit C-suiteradio.com.
