Cardano: ADA Potential In 2022?! My Take!!

cardano has been on the cutting edge of crypto for quite some time yet ada has recently been struggling to reclaim its previous highs this has left some wondering whether the bull run is over for ada with others claiming that we're on the cusp of an epic rally today i'm going to give you a quick recap of cardano bringing you up to speed on what the project has been up to and explain why ada may very well be on the brink of a breakout [Music] i hate to be a bother but going on without a disclaimer wouldn't be proper there's a rumor going around that i hold ada and this rumor is true financial advice however is not something i do everything in this video is only meant to entertain and educate you please contact a financial advisor if money is what you pursue now if this is your first time in this corner of the tube my name is guy and crypto is my muse my mission is to create high quality crypto content that gives it to you straight coins tokens news reviews market moves technical analysis and tutorials too if this is what you seek subscribe to the channel and ping that notification bell to become a true crypto geek the hourglass is not always full of sand which is why i've left timestamps below which you can use to skip over any topics you already understand just remember that the longer you stick around the more your mind will expand that's all you need to know about the coin bureau let's get cracking with cardano if you're unfamiliar with cardano here's what you need to know so cardano was founded in 2015 by charles hoskinson charles is also one of the co-founders of ethereum cardano was built by two for-profit companies input output global which is based in the united states with subsidiaries around the world and emergo which is based in japan with subsidiaries around the world cardano's development is coordinated by the cardano foundation a non-profit based in switzerland cardano raised over 62 million dollars between various token sales in 2015 2016 and 2017. cardano's main net went live in september 2017 and its blockchain is still in development this is because cardano has taken a research-based approach to development with 128 academic research papers and counting like ethereum cardano is a smart contract cryptocurrency and its goal is to power the future of finance by contrast with ethereum cardano uses a proof-of-stake blockchain which can process around 300 transactions per second tokens issued on the cardano blockchain also do not require interacting with a smart contract to mint or move as such tokens on cardano are referred to as native assets rather than tokens the absence of a smart contract with native assets keeps transaction fees on cardano low and these transaction fees can be paid in native assets thanks to cardano's babel fees technology around 2.7 million native assets have been issued on cardano's so far most of which are nfts ada is cardano's native cryptocurrency coin ada has a maximum supply of 45 billion with a current inflation rate of just over five percent per year when aida's maximum supply is reached depends on a series of factors which are outside the scope of this video but most estimates range from 30 years to 100 years slightly more than 80 percent of ada's initial supply of 31 billion was sold across the aforementioned token sales and the remainder went to input output emergo and the cardano foundation now while it's not clear how much ada these entities hold charles hoskinson's ama videos suggest that he personally holds between one and two billion ada now ada is used for staking for on-chain governance and to pay for transaction fees cardano currently has over 3 100 staking pools which makes it one of the most decentralized cryptocurrencies on the market this is thanks to cardano's k parameter which reduces staking rewards when there is too much ada being staked in a single pool ada staking rewards are currently around 4.6 percent per year there is no minimum stake and no lock up or unlock period it should come as no surprise then that 70 percent of ada's supply is currently being staked regarding governance on-chain voting is currently limited to project catalyst a community portal where ada holders can vote on which new cardano projects should receive funding from the community treasury cardano also has a cardano improvement proposal process which i'll come back to later now although cardano technically has hundreds if not thousands of smart contracts there are no decentralized applications live on cardano at the time of shooting this is mainly because of concurrency issues which i explained at length in my video about the top cardano projects which you can find using the link in the top right been over five months since i last covered cardano in depth and a lot has happened since then shortly after that video went out cardano researchers released the white paper for cardano's to jed stablecoin now the inner workings of dejed are also outside the scope of this video but i'll leave a link to another one in the description if you're interested in how the jed works anyways in august the cardano foundation also announced that it had partnered with coinfirm to track cardano transactions in accordance with the financial action task force's recommendations those of you who watched my crypto review from that week might recall my concern that we could see regulators go after the companies behind self-custodial wallets this is because the fat f isn't a fan of self-custodial wallets and it looks like estonia will be the first country to accommodate the fat f's dystopian requests by banning crypto wallets and d5 protocols i'll leave a link to my recent video about the fat f if you want to find out what other recommendations it has for cryptocurrency anyway i digress in september cardano completed the alonso hard fork which added smart contract functionality to the cardano blockchain cardano also announced that it would be using chainlink as its go-to data oracle something which took many by surprise given the historic friction between the communities of both crypto projects another surprising september announcement was iog input output globals partnership with dish network one of the biggest telecommunications companies in the united states with a market cap of over 17 billion dollars emergo also announced a 100 million dollar cardano ecosystem fund presumably as a response to all the other crypto projects that were announcing their own 100 million funds at the time such as phantom and algorand in october iog announced the formation of the utxo alliance a consortium of crypto projects that use the same transaction format as cardano iog also revealed its smart contract certification standards which will be applied to cardanodapps in iog's upcoming dapp store meanwhile emergo announced that it had incorporated with an african subsidiary with the goal of funding 100 cardano crypto projects on the continent ardana then also announced that it had raised 10 million from various crypto vcs including three arrows capital now for those who don't know ardana is basically aiming to be the maker dao of cardano its upcoming protocol will make it possible to mint a stablecoin using both staked and unstaked ada in november another cardano project called meld announced the completion of its own funding round which saw over one billion dollars of ada staked as part of its initial stake pool offering or ispo as the name suggests ispos involve staking ada in a specific pool in exchange for native assets belonging to the cardano project operating the pool in exchange the cardano project keeps the staking rewards from said pool as profit and in meld's case that worked out to over 10 million dollars of ada for those who don't know meld is basically aiming to be the ave of cardano and it's raised millions more from various launch pads and vcs since last autumn ardana also made the headlines again in november when it announced that it had partnered with near protocol to build a cross-chain bridge between near protocol and cardano and then out of nowhere etoro announced that it would be delisting ada for u.s customers in the first quarter of 2022. as i mentioned in my subsequent weekly crypto review etoro cited the quote evolving regulatory environment as its reason for de-listing ada what's odd is that the text in etoro's blog post about the d-listing now cites the quote evolving crypto environment which makes etoro's reasoning even more confusing now thankfully etoro's actions are of little consequence since bitstamp listed ada on the same day etoro made its announcement and bitstamp sees way more trading volume for cryptos than etoro then in early december a cardano project called sunday swap launched its test net if the name didn't give it away sunday swap is a decentralized exchange like uniswap and it appears to be the most popular cardano project right now unfortunately a mainnet launch date has yet to be announced but i'll leave a link to its medium in the description if you want to stay up to date the day after sunday swaps test net iog announced that it had released a test net of its own this testnet was for cardano's erc20 converter which is being built with the help of a crypto project called singularitynet i explained the erc20 converter in detail in my cardano update from early 2021 but the tldr is that it will make it possible to transfer erc20 tokens between cardano and ethereum in a trustless manner in mid-december cardano's top d5 projects came together to form the cardano d5 alliance to facilitate dap development in late december emergo announced that it would be creating an nft marketplace for cardano called fiberite if you're an nft creator i'll leave the registration details below and if you're an nft collector be sure to check out my ultimate nft guide using the link in the top right now despite all of cardano's announcements updates partnerships and developments ada has had a hard time keeping up with the rest of the crypto market and is down more than 50 percent from its all-time high as you can see ada's troubles began back in september specifically the alonso testnet hard fork on september the first which caused ada's price to rally to its all-time high of over three dollars as far as i can tell the slow crash that followed was caused by the concurrency issues many cardano projects faced during the alonso test net namely min swap at that point it became clear that dapps wouldn't be deploying to cardano any time soon this fact combined with the fud that followed must have dented the morale of many ada holders or those looking to become ada holders the main net launch of alonzo in mid-september likewise failed to meet the high expectations of both the cardano community and the crypto industry to make matters worse the circulating supply of ada has increased by nearly 1.5 billion since early august given that ada's average price over that time was about two dollars this works out to nearly three billion dollars in cell pressure this figure assumes that the recipients of that newly minted ada sold but this is probably not the case since i reckon the rational decision would be to stake ada rather than to sell it however it's likely that cardano projects are selling any aida they've earned from their ispos or from project catalyst rounds to fund their operations the cardano foundation iog and emergo also seem to be getting most of their funding from sales of ada since neither of these entities has received external funding at least not to my knowledge what's more is that the ada allocated to cardano's core organizations finished vesting in the summer of 2019 which means that this ada can in fact be sold again it's more likely that they're using the proceeds from their staking activities to fund their operations but in either case there is likely some amount of ada selling going on there now this wouldn't be a problem were it not for the fact that there isn't much demand for ada beyond investing since there aren't currently any dapps which give ada utility the good news is that there are lots of institutional funds with exposure to ada such as greyscale's digital large cap fund and it looks like a few of these funds have been accumulating ada over the last few months many cardano dapps are also scheduled to deploy in the coming months and these are likely to create the demand ada needs to conquer its previous all-time high last but not least ada's long-term technicals suggest it could rise as high as four dollars in the coming months assuming it can break that zone of price resistance at the dollar 70 mark if ada doesn't break past that point we could see its price print a nasty head and shoulder pattern which could bring ada back down to 2020 lows i highly doubt this will happen though because cardano has lots of upcoming milestones which could easily take ada to new all-time highs as many of you will know cardano has a five-stage roadmap with its own website the alonso hard fork that happened in september effectively marked the end of the gogen era which focused on smart contract functionality though there are still tweaks being made here and there the only two remaining eras are basho which pertains to scaling and voltaire which pertains to governance cardano developers have been working on basho and voltaire for quite some time but it's not entirely clear how far along we are with them nor when they'll be complete this is because cardano developers have yet to release a detailed roadmap for these eras in the same way they did with gogen what is clear is that the basho era will be defined by hydra a layer to scaling solution for cardano which has been in development for over a year now without getting too technical hydra will make it possible for each stake pool operator to securely process transactions off-chain and submit them on chain using complex cryptography each hydra head i.e stake pool will be able to process around 1 000 transactions per second now given that cardano currently has over 3 000 stake pools this means that cardano will be able to process over 3 million transactions per second once hydra is complete cardano founder charles hoskinson mentioned in his christmas eve live stream that hydra will be complete this year in terms of an exact timeline it's likely that hydra will be introduced during one of cardano's hard fork combinator events and these are scheduled to occur in february june and october mark your calendars other scaling related milestones for cardano were detailed by iog in a november post and the one that stuck out to me most was increasing cardano's block size as i mentioned in my video about the fastest cryptocurrencies you can make cryptocurrencies faster by speeding up the block time or increasing the block size some crypto projects have opted to do both now the trade-off is of course decentralization and cardano developers are hyper aware of the storage issues that could arise if a block size increase is approved now i'm not sure what their solution is for this but it would be awesome if cardano chose r-weave to store its blockchain data the same way other cryptocurrencies have more about r-weave in the description as for voltaire project catalyst is chugging along and it looks like it's only a matter of time before cardano improvement proposals will be accepted or rejected with on-chain voting the only cardano improvement proposal that really stuck out to me was sip 30 which proposes to make it possible for cardano wallets to interact with dapps this is a bit odd because cardano already has a wallet for dapps called namie and i'll do a tutorial when the time is right back to voltaire voltaire's final form is apparently being fleshed out by the decentralized consortium funding or dcf a conglomerate of institutions including the cardano foundation boston consulting group and the blockchain research institute a presentation from september about the dcf by enterprise architect johnny nuen suggests that the final form of voltaire will look like a sort of decentralized world economic forum if i had my tin foil hat on i'd tell you that cardano is explicitly looking to compete with the world economic forum through voltaire a less dystopian more inclusive world economic forum this is because the world economic forum has a crypto consortium of its own which is arguably at odds with cardano's values and definitely at odds with the core values of cryptocurrency you can learn more about what the world economic forum crypto consortium has been saying about cryptocurrency lately using the link up there in the top right now although i do hold ada and am extremely excited about cardano's potential it would be remiss of me not to at least highlight some concerns i have my first concern with cardano is regulation the elephant in the room here is the initial stake pool offerings being conducted by cardano projects which are probably similar enough to initial coin offerings to cause trouble in some countries charles hoskinson seems to be acutely aware of the regulatory scrutiny ispos could bring this is why he's pushing for contingent stake pools for ispos which will require kyc on that note i can't say i'm a fan of the cardano foundation's choice to partner with coinfirm to track transactions if you watch my video about blockchain analytics companies you'll know that these companies have some incredibly powerful tools that severely limit our privacy on the blockchain yes they do help to stop nefarious activity but powerful tools can be used for good or ill depending on who is in control i seriously hope that the nature of the partnership is able to find a balance between security and privacy now this ties into my second concern with cardano and that's the details of its partnerships obviously not all of cardano's partnership details can be disclosed but i for one would like to know the details of cardano's partnership with dish network as well as the other high-profile institutions the project has tied the knot with speaking of which i find it surprising that cardano waited so long to partner with chainlink this is because without an oracle you can't really run any decentralized applications yet the chain link partnership came weeks after cardano's smart contract functionality had come around this brings me to my final concern with cardano and that's that it hasn't been all that keen on partnering with crypto projects outside of its ecosystem this has put cardano at a huge disadvantage because the current crypto industry is defined by interoperability and cooperation to be fair though cardano is making lots of progress in that department and it looks like cardano's top projects are very keen to cooperate with other top players in their respective crypto niches this just underscores the fact that cardano's success ultimately depends on the demand its dapps can create for ada mark my words when cardano dapps start to deploy ada is going to go ballistic that's all for today's cardano update folks if you liked what you saw let me know by smashing that like button if you plan on tuning in next time be sure to subscribe to the channel and ping that notification bell if you're looking for more from the coin bureau you can check out coin bureau clips for some behind the scenes action i'm also active on twitter tik tok instagram and telegram where i post memes and provide daily market updates if you want to know what other cryptocurrencies i hold as part of my portfolio and see how i change it as i go subscribe to my weekly newsletter to get that info if you're in the market for some crypto merch the coin bureau store has got you covered quite literally hoodies sweaters teas and beanies everything you need to rep crypto regardless of the weather you can find my second channel socials telegram newsletter and merch store using the links down below thank you all so much for watching i look forward to seeing you all again until then this is guy bidding you goodbye [Music] you

Channel: Coin Bureau

Views: 719,765

Keywords: Cardano, ADA, Cryptocurrency, Crypto, Blockchain, Review, 2022, Smart Contracts, dApps, Ethereum, ETH, Charles Hoskinson, Emurgo, Coinfirm, IOHK, Dish Network, Update

Id: h1s0LDfmjIM

Length: 22min 19sec (1339 seconds)

Published: Thu Jan 06 2022

Reddit Comments

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[u/scruffy4]

Guy always does a great job breaking down everything. No predictions here. Just pros, cons, and his opinion for this new year.

He’s also very transparent with his portfolio. He used to hold more ADA but currently holds less than 2% of his overall portfolio. But he’s still bullish on the project.

[u/Wannalogin]

Seems to me he is uninformed about Cardano or eUTXO in general. Using TPS in a eUTXO model, concurrency issues….

Talking about no live Dapps…. Not interested in working together with other crypto projects. Seems all like a under researched video to me.

[u/Struikemans]

I normally like his videos, but this was not his best one. Maybe because he’s more bullish on other projects.

He mentioned concurrency hurdles which is fine, but forgot to mention that there are solutions in place which silenced the FUD within seconds. Also “no dapps”, seriously…1 second of research will tell you differently. He could have said that it’s less developed or in its infancy. On price action the best he could come up with was a possible head and shoulders pattern that could take us to 2020 lows. Felt very far fetched to me.

His comment on ADA going ballistic when dApps launch was spot on though

[u/mikep1215]

Can I get a TLDW

[u/Lnnrt1]

Nice

[u/bepo43vR]

Content is quite honest and documented I find. Of course there might be some time where some content could be sponsorized.

As Guy himself said one time in a vid, believe half of what you see, none of what you hear.

[u/paper_bull]

At least he stopped making the stupid faces. 10/10

[u/coldfusion718]

He’s uninformed and gets quite a few things wrong. Lots of half-truths or inaccuracies in his videos about Cardano. These are just a few things I noticed 5 minutes into the video:

• Claim: Cardano is built by 2 companies: IOHK + Emurgo.
  Truth: Cardano is built by IOHK; Emurgo is the investment arm of Cardano. Emurgo built Yoroi wallet.

• Claim: Cardano's development is coordinated by the Cardano Foundation (CF).
  Truth: The Cardano Foundation's focus is to promote/market and raise awareness about the Cardano blockchain and its ecosystem. It's also involved in driving partnerships. CF doesn't coordinate or drive the blockchain's development. Source: https://cardano.org/partners/?tab=cardano-foundation#partners-section

• He makes some speculations about the initial tokenomics, how much IOHK, Cardano Foundation, Emurgo and Charles himself holds when he can just link to https://cardano.org/genesis/. He says based on Charles' videos, he thinks Charles holds about 2B ADA.

  From Cardano genesis linked above: Cardano Foundation, Switzerland: 648,176,761 ada

  EMURGO: 2,074,165,644 ada

  IOHK: 2,463,071,701 ada

  Now if he is equating IOHK's wallet to Charles' personal wallet, then yeah Charles "holds" about 2B ADA. I don't think he does because he has mentioned making his billions from bitcoin and has said he hasn't sold a single ADA. The IOHK wallet is probably a multisig wallet with Charles holding one of the keys.

• Claim: There are no dapps currently on Cardano at the time of shooting (the video).
  Truth: Mueliswap DEX is currently running (has been for about a month); people have been trading on it for weeks already. The reason for "no dapps" is because of the concurrency issue, which isn't an actual issue, more of a programming/design paradigm: if you use the same design from an accounts model dapp on Cardano, you will have this concurrency issue.

  He doesn't make the distinction that Cardano's eUTXO model requires a completely different design paradigm compared to everything else out there (accounts model).

  The real reason for "no dapps" is because tools, dev kits, and integrated dev environments (IDEs) are still being created. Ethereum also didn't have dapps until about a year later. They did have cryptokitties which brought the network to a grinding halt.

  Currently, there are over 120 dapp projects in development and probably a few dozen will go live in the next few months (according to Charles).