Should You Forget Bitcoin and Buy Cardano Instead?

Should You Forget Bitcoin and Buy Cardano Instead?

Bitcoin Surges 290% in Two Years, but Is Cardano the Better Investment?

Bitcoin (BTC) has experienced an extraordinary 290% surge over the past two years, fueled by the approval of its first spot-price ETFs in January, its April halving event, expectations of lower interest rates, and the crypto-friendly stance of the Trump administration. The world’s largest cryptocurrency has also gained traction among institutional investors as a store of value, often compared to gold and silver.

While Bitcoin continues to dominate the market, some investors seeking higher potential returns are turning their attention to smaller cryptocurrencies like Cardano (ADA). Since its debut eight years ago, Cardano has created many millionaires, raising the question: Could it be a better buy than Bitcoin right now?

Key Differences Between Bitcoin and Cardano

Bitcoin relies on the energy-intensive proof-of-work (PoW) system for mining new coins. In contrast, Cardano operates on a proof-of-stake (PoS) model, where users "stake" their tokens to validate transactions and earn rewards. This method is more energy-efficient and allows Cardano to function similarly to Ethereum (ETH) and Solana (SOL).

PoS blockchains like Cardano are valued based on their transaction speeds and the size of their developer communities, as they support smart contracts, decentralized applications (dApps), non-fungible tokens (NFTs), and other digital assets. Bitcoin, on the other hand, primarily serves as a scarce asset, much like gold, with its mining difficulty increasing every four years. The final fraction of a Bitcoin is expected to be mined by 2140.

The Bull Case for Cardano

Cardano has two key advantages over Ethereum, the leading PoS blockchain. First, Cardano boasts a theoretical transaction speed of 1,000 transactions per second (TPS), significantly faster than Ethereum’s current 600 TPS.

Second, Cardano determines transaction fees based on the size and computing power required for each transaction, making its costs more predictable than Ethereum’s congestion-based gas fees.

In August, Cardano introduced the Chang Hard Fork, a significant network upgrade that improved its speed, security, and scalability. This development could attract more developers to build applications on its blockchain, further strengthening its ecosystem.

Conclusion

While Bitcoin remains the dominant force in the cryptocurrency market, Cardano’s faster transaction speeds, energy-efficient PoS system, and predictable fees position it as a strong alternative. As institutional adoption of cryptocurrencies continues to grow, Cardano may provide investors with opportunities for significant gains beyond Bitcoin’s established market presence.