Bitcoin Breaks Out, Cardano Stakes Its Claim
Bitcoin (BTC, Tech/Adoption Grade “A”) is trading higher today, as it continues to streak past the $10,000 barrier on rising awareness of its existence, continuing central-bank assaults on old-school currencies and accumulating evidence of the efficacy of digital-ledger-based and decentralized alternatives to the current crumbling regime.
The world’s biggest cryptocurrency posted a 24% gain in July, with most of it coming over the last 10 days.
BTC’s price action is encouraging, as it’s the final piece in a puzzle that’s beginning to look at lot like a sustainable rally for the industry as a whole.
Ethereum (ETH, Tech/Adoption Grade “A”), which had led the crypto rally in Bitcoin’s absence, posted a gain of nearly 50% for the month.
We have liftoff! #Bitcoin is finally crossing above 10k and it seems to be sucking the air out of #altcoins as many of them head in the opposite direction... Is #AltcoinSeason over? #BTC
— Weiss Crypto Ratings (@WeissCrypto) July 27, 2020
Meanwhile, a couple weeks ago we asked whether it was time to start talking about crypto’s “Big Three.”
Well, it’s still too early, from a market-capitalization perspective. But Cardano (ADA, Tech/Adoption Grade “B-”), in the aftermath of a major milestone, is pushing to a resounding “yes” when it comes to fulfilling the promise of blockchain technology.
Shelley is important not just as a tech upgrade - it shows the world that the folks behind Cardano do have the capacity to deliver on their promises. There will be a lot less Cardano skeptics post-Shelley. https://t.co/uNXem1Uvgb
— Weiss Crypto Ratings (@WeissCrypto) August 3, 2020
Here's the explanation of a “hard fork,” according to Cardano:
In simple terms, a hard fork is the introduction of any significant alteration to the core code of a blockchain protocol, rendering any transaction record before it incompatible with the hard-forked coin. Now, if this is done carelessly or without planning, it can cause issues. However, Cardano is using technology specifically designed to smoothly run a managed hard fork, ensuring that no separate chain is created (the negative connotation with an unmanaged hard fork) and thus avoid compatibility issues.
Functionally, the move from the centralized Byron network to the decentralized Shelley network “would make Cardano 50 to 100 times more decentralized than other prominent blockchain networks.”
Cardano is now the seventh-largest crypto according to market cap. The successful rollout of Proof of Stake will probably take it higher, faster.
Bitcoin’s participation is big, of course. But we’re seeing strong signs of crypto’s increasing breadth and depth and, most importantly, efficacy.
They’re doing what they say they’re going to do, and their rationality is standing in ever-starker contrast to the haphazard approach of monetary policymakers the world over.
Best wishes,
Juan and Bruce
