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Reasons Why Decoupling with Bitcoin Could be Beneficial for Cardano

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There have been some glaring fluctuations in the cryptocurrency market over the past few days predominantly because of the rise and fall of Bitcoin, unarguably the most popular cryptocurrency to date. Since Ethereum was introduced to the market as an alternative coin or Altcoin in order to bring some major improvements in the crypto-world, there has been a constant vying amongst Bitcoin and the rest of the eighteen hundred altcoins. This vying is mainly for gaining a gargantuan market capitalization along with a commendable position on Coinmarketcap.

Among the numerous Altcoins that are now traded by cryptocurrency investors across the globe, Cardano is certainly one of the popular ones. Despite experiencing a recent downfall in its price, Cardano is still holding the seventh position on Coinmarketcap with a decent market cap. Very recently, this cryptocurrency made an announcement regarding the cancellation of accepting Bitcoin payments. This phenomenon initially made a huge impact on the cryptocurrency market as well as on various social networking sites like Twitter.

Whilst, some speculators are doubtful about Cardano’s future after this incident, most of them are hoping for an elevation in the price of Cardano. Here, some factors would be discussed that would help you to comprehend why this decoupling could actually be beneficial for this digital currency.

a. Being Free from Bitcoin’s Influence: It is a well-known fact that market speculation and sentiment plays a pivotal role in determining the current situation of a specific trading market. Most of the Altcoins are tied up Bitcoin because it is still the first point of contact while trading in certain cryptocurrency exchanges. Being the first ever digital currency accounts for the huge circulation of Bitcoin as well. This dependency makes several Altcoins susceptible to subtle changes constantly occurring in the market and consequently, when Bitcoin experience a massive loss in its price, other dependent coins plummet commensurately. Cardano’s recent decision of decoupling would put it outside the speculative space and in process, it would be impervious to the sudden fluctuations in Bitcoin’s price.

b. Grabbing Attention of New Traders: Despite being the first cryptocurrency to be introduced to traders, Bitcoin’s technology has certain limitations that sometimes can be used to other currency’s advantage. While several Altcoins use a similar technology as Bitcoin by implementing SHA-256 algorithm, ADA, the official cryptocurrency of Cardano offers a different technology and trading approach. On this platform, coins are mined and certain decisions are made via Ouroboros, a proof-of-stake algorithm. Also, using a different technology than Bitcoin would make it a more stable currency than Bitcoin and other similar currencies. Hence, the recent decoupling with Bitcoin is likely to help this currency develop in its own way and offer new innovative features to the cryptocurrency traders.

c. Acceptance of USD Deposits instead of Bitcoin: In the past few weeks, several renowned currency exchanges have started accepting USD instead of Bitcoin due to its capricious nature and vulnerability to certain malicious cyber-attacks. As a result, Cardano would get the opportunity to be accepted in more exchanges with ADA/USD trading pair in lieu of ADA/BTC. This incident would invariably increase the exposure and circulation of this currency.

Recent Developments of Cardano:  

On 14th February 2018, this coin got engaged in a strategic partnership with Sirin Labs which immediately resulted in a considerable price surge. According to Cardano’s whitepaper, this partnership was one of the many significant partnerships that are about to commence during this year. Without the influence of Bitcoin, the number of such partnerships is likely to increase to a great extent. Also, Cardano’s development team has announced a software update that would eliminate all mainnet bugs and compilation errors swimmingly. This update is likely to offer Cardano users the amount of security that other coins are unable to provide.

Final Thoughts:

This cryptocurrency was introduced on 29th September 2017. Within a time period of six months, Cardano has been able to acquire the seventh position on Coinmarketcap with a market capitalization of $3.8 billion (on 2nd April 2018). If this is any indication of what is about to unfold in future, traders can certainly be hopeful about this coin’s future. Decoupling with Bitcoin would just strengthen positive speculations as it would effectively remove the volatility factor from this currency’s property.

We will be updating our subscribers as soon as we know more. For the latest on ADA, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of BTC Keychain via Flickr

Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?

The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.

In May this…

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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