When the dot com bubble burst, there wasn’t much expectation that anything worthwhile would come off it. However, out of the ashes rose companies that now dominate global business. A company like Amazon has grown to become the most valuable in the world, at one point peaking at a market cap of over a trillion dollars. So how did this happen? It all boils down to the fact that the dot com bubble was an overheated market with lots of low quality companies that riding the wave, but didn’t have any fundamentals backing them up. The same scenario could be playing out in crypto sphere.
For the past one year, crypto has been severely depressed and a number of projects are in shaky grounds, as funds dry up. If the current scenario continues, most weak projects will probably never recover. However, it offers a perfect opportunity for fundamentally sound projects to get stronger, and grow in value. These could emerge stronger just like the Amazon’s and Google’s of the dot com era.
One project that is well positioned to emerge stronger than ever before is Cardano (ADA). For starters, Cardano has a solution to the problems that are holding back the adoption of blockchain technology. For instance, scalability has been a huge hindrance to the full scale adoption of blockchain technology. For it to be adopted at scale, it needs to have or even surpass the level of scalability available in centralized system.
Thanks to peer reviewed Proof-of-Stake Ouroboros algorithm, Cardano is a highly scalable blockchain, and it achieves this without compromising on decentralization. On top of that, IOHK researchers are working on sidechains for Ouroboros. This will take Cardano scalability to levels that rival any centralized systems. This means that in the long run, as decentralization takes root in society, Cardano’s value stands to grow with it over the years.
On top of that, the IOHK team has been developing relationships with governments in different parts of the world, mostly in Asia and Africa. This means that as blockchain takes root in society, Cardano will be at the center of it, in shaping policy and making sure that there is a favorable environment for Cardano to thrive. Adoption through favorable government policies in countries where it is needed most could see its value grow significantly over time. It’s a long-term anchor to Cardano’s value.
Last but not least, Cardano has the money to see its development to the end. Lack of money is one of the reasons why most projects are likely to disappear. Cardano doesn’t have this challenge. That’s because, at the peak of the crypto bubble in 2017, the IOHK divested from Bitcoin (BTC). This gives them enough resources to comfortably work on Cardano to the end, and see it become a successful project.
All these factors give Cardano a realistic chance of making it big in the long run. It may take years, but Cardano could ultimately anchor the decentralized economy of the future. For those who hold through the hard times, this could be immensely rewarding.