Today, we’ll have a look at why crypto is falling so hard, particularly Cardano since that’s what we’re focused on here. We’ll, however, talk a little bit overall about the 3 main cryptos that are really of our interest. We’ll talk about the longer term history around Cardano, Bitcoin, and Ethereum.

China And Cryptocurrencies

Bitcoin mining representation
Bitcoin mining representation

In 2017, we saw spikes, which literally lifted up all cryptocurrencies and we saw all of them go for runs together. Then, we witness what is commonly referred to as a “crypto winter” from May of 2017 up until 2020 when the crypto started to run again.

Interestingly, every single time the crypto world started seeing crypto winters has been when China made a move towards one direction or another. So most recently, in the last week, we’ve seen China start to really clamp down on a lot of the laws around mining of Bitcoin and other cryptocurrencies. The Chinese central bank has made it illegal for any transactions to happen from these banks to cryptocurrency.

This is obviously a scary news to the crypto market. However, the interesting thing that we’ll point out here today is that every single time we see these runs come back after the dips, we see them come back against the currencies that are of most applicable use.

The Exciting Part

Bitcoin is kind of a standard currency and it comes with a lot of uses. However, there are not nearly as many DeFi apps on Bitcoin as there is on Ethereum and some of the other networks. Ultimately, our supposition here is that these coins that are built to be able to have more use than just the speculative coin actually ends up providing a lot further value long term, and in-turn ends up seeing a lot better value coming off the coin after these dips.

Bitcoin to USD chart

As shown in the picture, the long dip between 2017 to 2020, which people call ‘the crypto winter’, was when China originally started sabre rattling they were going to outlaw cryptocurrencies. Then, we saw another hard dip during August 2020, followed by the second run, where we’ve seen Bitcoin and other currencies run to all new highs of almost hitting 70 thousand. Finally, now in the last week, we’ve seen China starting to lock down again.

As we analyze the resurgence, we see that these curves are coming back during the times the coins came out of the dip. So every time we’ve seen this happen, the coins with functional use, such as Ethereum and Cardano, came back a lot stronger and went higher.

The Smarter Crypto

Bitcoin and Ethereum
Image by Pierre Borthiry

Comparing Bitcoin, Ethereum, and Cardano, we know that Eth and Ada have bet more uses cases than Bitcoin, which is sort of like the gold standard of crypto. And when we compare their curves of the dips and runs we mentioned earlier, we’ll witness a much sharper and promising curve with Ethereum and Cardano.

For instance, if you’d put a dollar in Bitcoin in the beginning of 2020, then it would’ve roughly 5x the most at its peak.

Bitcoin chart

Now, if you compare that to Ethereum, you would’ve reaped almost 10x at the peak if you had put a dollar on Eth at the beginning of 2020. And we think the reason is that Ethereum is one of the more blockchains of the future.

Ethereum chart

We can now perhaps group these coins into blockchain 1.0, 2.0, and 3.0. So blockchain 1.0 will be Bitcoin, Blockchain 2.0 will be Ethereum, and finally Blockchain 3.0, which is Cardano and a few others that are more advanced and innovative networks.

Now, if we turn to Blockchain 3.0, which we’re focusing on right now is Cardano, or Ada, we’ll see that you could’ve reaped almost 30x at the peak if you had put a dollar on Ada in the beginning of 2020. And if you need a deeper guide on why Cardano is better than Ethereum, here are 4 reasons why we believe so.

Cardano Ada chart

The Deduction

The data now gives a better clarity to where we see these use cases and these more mature blockchains are going to have a lot more functionality. When we heard China was pulling out of it, we instantly knew that worldwide things will start moving to blockchain. And I’m not the kind of person that’d say it’s going to move overnight.

This is why we go in when we see such dips. When we saw the most previous one, we noticed Cardano dip under 1 dollar and 80 cents, and I bought hard. Because we’re building on it, we’re investing into it, and I know there’s a lot of people like me building stuff on it. And in my opinion, when you see these blockchain networks being built on, that’s what’s going to keep them around, giving it longevity and life, which in the long term is what will beat a speculative coin like Bitcoin.

I hope I’ve brought something of value to you and this is why my advice is now is the time to get in these dips. This is in no way a financial advice but a personal opinion, so play safe. Thank you for sticking with me to the very end. As always, make sure to keep your kids protected with CleanRouter and CleanPhone so that you have the ultimate parental controls with how your kids use their phone 🙂

If you’d like to learn more about the same, kindly check out the video below:

Spencer Thomason is the CEO and Co-founder of CleanRouter, as well as many other products.

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