The cost of becoming a Cardano millionaire

On 13th May 2021, Cardano’s token ADA broke an important all-time-high by hitting the $2 mark.  Plus, it was the only top-ten cryptocurrency rising in value during a historic sell-off period. Remarkably, given its price, it is the fourth most valuable token in the world.

Isaiah McCall writes, “I’m confident it will be the next Ethereum and have a massive role in web 3.0,” and if he is correct, it may be a good time to ad Cardano to your portfolio before the price rises even more.

Cardano community members believe that one day ADA will reach $100. To do that, it would need a market cap of $3 trillion. That’s an issue, as Bitcoin’s market cap has a 1 trillion market cap and has been around since 2009. To put this in perspective, Cardano is 4-years-old and has a current market cap of $61 million.

Cardano’s battle will not really be with Bitcoin, which serves an entirely different purpose. Instead it will be with Ethereum, and Cardano has already positioned itself as the ‘Ethereum killer’ (or its fans have). This does make it sound as if it is a heavyweight boxer looking for a title fight.

Both Ethereum and Cardano are smart contract platforms, and McCall says they “stand to become crypto-Google (and maybe crypto-Yahoo).” Google’s market cap is $1.5 trillion, but McCall suggests that the smart contract platforms can double that.

However, here is what you need if you fancy becoming a Cardano (ADA) millionaire. Based on ADA reaching $100, (it’s just under $2 at the moment) you would need to buy anywhere between $15,000 to $20,000 worth of Cardano to become a millionaire. It will take several years to get to this point – McCall says about four to five years – but Cardano is using some interesting tactics to speed this up.

Cardano’s founder Charles Hoskinson invited Elon Musk to tea and a chat about ADA and Tesla on 13th May, and it could be that Musk will see the value in this particular blockchain. McCall says, “Cardano is an institutional investor’s wet dream. It’s available on every mainstream exchange, doesn’t have any SEC allegations against it, unlike XRP.” It is also a more stable blockchain.

You don’t need to be Elon Musk to benefit from a Cardano investment, although as with every market there is risk involved, so please don’t invest money you can’t afford to lose. Its proof-of-stake protocol means transactions are much more fluid by not rewarding miners with a block reward but with the transaction fee.

Furthermore, there are massive amounts of on-chain liquidity on Cardano’s blockchain. Around $16 billion ADA is circulating around the network and $22.2 billion is staked on the Cardano blockchain. According to the stats, Cardano is also the second most staked blockchain, coming in just after Polkadot.

While Ethereum has the first mover advantage on smart contracts, Cardano arguably has it on POS. although Ethereum is transitioning to POS this year. What it does need, and it is something that Etheruem has, is “institutional support and an ecosystem of dApps to become the next Ethereum.”

But it is still worth taking a punt on Cardano, even if it has a relatively small share of your crypto portfolio, and certainly while its price remains in single digits.