Hey there, Power Profit Traders!
I hope all of you are enjoying a safe and happy holiday season. And while many in the markets are taking it easy this week, as evidenced by lower trading volume and dropping volatility, I continue to work on the next big opportunities for you into 2022.
Plus, for this entire week only, it’s a Money Morning LIVE Open House! We’re giving viewers a backstage pass into select PREMIUM trading rooms absolutely free. It all kicks off at 9:15 a.m. ET right here. (And don’t forget, you can now watch REPLAYS of my sessions right here!)
Now, back to those big opportunities…
Today I want to discuss a coin that could be a better alternative to Bitcoin (BTC).
Bitcoin is, of course, the first and still-leading crypto coin in the market. But just because it was first and biggest, doesn’t mean that it will remain the best.
One of many challenges for Bitcoin is that it takes a tremendous amount of computing power to initially mine (trust me!). And as more and more Bitcoins are created, and more folks take on the investment to mine it – the amount of power needed to create each Bitcoin continues to increase.
In other words, with more Bitcoins in the market and more folks participating in that market – the ongoing power requirements keep soaring.
It is estimated that as of last year, Bitcoin consumed over 130 terawatt hours per year – the equivalent to the electrical power needs of a medium-sized country.
This has led many governments to ban mining operations, and even restrict maintenance for Bitcoin. China – what was the largest market for Bitcoin creation – has become wary of power drains from its national markets.
In addition, Bitcoin’s core structure and crazy growth allow just a few transactions around the globe per second. This means that there are not only delays in processing transactions and exchanges – but that those delays can become onerous when the volume of exchanges spikes, particularly during heavy trading in the coin markets.
And because of the transaction limitations and the power demands, exchange fees from third parties – including for verification and processing – also rise. This makes Bitcoin ever more expensive to use.
Bitcoin relies on third-party folks for verification of its coins, as part of ongoing blockchain accounting and for exchange. These third parties often have no stake in Bitcoin – which means that there are plenty of folks relied upon by BTC traders and users that have no real vested interest in the coin or the platform.
These and other challenges led one of the founders of Ethereum (ETH) to develop an alternative platform and, as of this summer, the third-largest crypto coin in the world after Bitcoin and Ethereum…
This alt-coin solves the above challenges, and is now catching the attention of the market, as well as many institutions and even governments… And it should be on your radar, too.
A Next-Generation Coin
Cardano (ADA) is a newer blockchain platform that is used to showcase and process its ADA coin.
Unlike Bitcoin, which uses what is known in the coin and Blockchain worlds as proof of work, Cardano uses proof of stake.
Proof of work can drive up power consumption, slow down processing and exchanges, and leave it open to non-vested folks to meddle with.
As “proof of stake” implies, folks are only able to contribute and maintain ADA if they indeed have a stake or interest in actual ADA coins. And in doing this, the Cardano Blockchain ledge is much more decentralized for both financial transactions (DeFi), as well as for the applications that utilize ADA via the Cardano ledger (DeApps).
To authenticate an ADA, there must be proof of identity, which significantly reduces fraudulent and illegal users.
All this means the computing power needed to maintain the accounting for ADA doesn’t have to hit every single computing system and network, like what has to happen for Bitcoin. Instead, only stakeholders are involved at the core of transactions.
This reduces the power requirements by a massive scale, with ADA requiring only a current estimate of only 6 gigawatts vs 130 terawatts for Bitcoin (a terawatt is 1,000 gigawatts).
And transactions can happen way more efficiently at a rate that is currently running at 51.4 times per second better than Bitcoin.
Against this backdrop, Cardano is receiving a great deal of positive attention by institutions, corporations, and even governments.
ADA On the Charts
ADA came to the market back in 2017, and since then has been gaining in fits and starts, really taking off in 2021.
The coin grazed $3 earlier this year, but has since succumbed to the broader volatility that’s plagued many coins in Q4, presenting some opportunities to BTFD (Buy The Friggin’ Dip), as the kids say.
Cardano ADA Coin Index Price – Source: Bloomberg
Since issuing a buy signal to my Microcurrency Trader subscribers, ADA has gained 11.2%, as of this writing…
And I see more opportunities ahead at key strategic levels in 2022, especially as the coin gains further attention around the world. I hope you’re on the journey with me!
So, kids, that’s your Power Profit Trades lesson for today! Be sure to take advantage of your peek behind the paywall with LIVE premium content starting at 9:15 a.m. ET right here!
Have a great day!
Tom Gentile
America’s #1 Pattern Trader
