Skip to main content

Quick Take: Cardano's Recent Dip

 I’m relatively new to Crypto, and I haven’t been an active participant in this sphere for too long. Despite that, I have stake in Ethereum, and recently established a position in Cardano. What attracted me to Cardano was the general Cryptocurrency dip that had occurred since the beginning of the summer this year. As I was reading on the subject, I came to discover that there was an update happening soon where smart contracts were going to be enabled to the blockchain. In fact, Charles Hoskinson seemed adamant about releasing the tech on a particular date, September 12th [1].  




Now, from my experience with Ethereum so far, it’s obvious that deadlines are a tricky thing to deal with. Ask Vitalik Buterin how hard it is to keep to an update deadline considering that the move to Ethereum 2.0 has been delayed multiple times since its announcement some time ago [2-5]. So as an investor, I love this sort of situation. It’s a simple thesis:

1. There is now a bet being made for this grand announcement.

2. The bet is on the ability for Charles and Co. to meet their deadline

3. In the meantime, the price of Cardano will rise because people buying into the hype of the update, and people buying to bet for/against Charles’ ability to meet a deadline.

4. If he succeeds, you can cash out from the gains made while waiting for update. If he fails, you can still cash out from the gains from waiting before it crashes.

With this thesis I bought in about a week and a half ago. Pleasant to my surprise, I made a nice penny so far from the hype. Now, it’s September 14th, and I still haven’t sold my stake despite the recent large dip because I’m still above my cost basis by about a $120 total. Truth be told, I was betting against Charles and Co., but the fact that he did it has given me a sense of trust in the ability of the team to manage the development of the blockchain accordingly. Now that the smart contracts update is live as of September 12th, I’m expecting an even higher return over the next 6 months as people begin to explore and play with the new update. For now, people are still cashing in and selling, and many of them probably see the same outcome I do and will buy back in after the trough of the dip has been reached.

The other interesting takeaway from this situation and in Cryptocurrency in general is that there is now budding differentiation in price fluctuation between the popular coins. We’ve seen in the recent Crypto crash that the recovery is splitting in different directions, I see that the trajectory Bitcoin, Cardano, and Ethereum have been on over the past month is not as synchronous as it used to be. This can be a sign that the there’s enough crypto investors now that the differences between coins are going to matter more, it could be more awareness of the differences between coins by big money investors, or it could be an increasing “efficiency” of the Crypto market as a whole.


References

1.    https://markets.businessinsider.com/news/currencies/cardano-alonzo-upgrade-ada-purple-smart-contracts-defi-nft-2021-9
2.    https://decrypt.co/35210/ethereum-2-0-delayed-vitalik-buterin-disagrees
3.    https://www.coindesk.com/tech/2020/05/11/vitalik-buterin-says-much-delayed-ethereum-20-still-on-track-for-july-launch/
4.    https://www.nasdaq.com/articles/ethereums-billionaire-founder-admits-ethereum-2.0-is-delayed-2021-06-07
5.    https://tokenist.com/buterin-explains-why-ethereum-2-0-upgrade-wont-arrive-until-late-2022/


Comments

Post a Comment

Popular posts from this blog

Quick Take: Putin on Ukraine

  With recent escalation in events between Ukraine and Russia [1] [2] [3], my friend sent me an article written this past summer outlining Putin’s view on the affair. Although I’m not an expert in Slavic politics and foreign relations, that doesn’t stop me from delivering a half-baked opinion on the issue of Ukrainian independence from Russia. I highly recommend that you as the reader read the full article below, it’s surprisingly well written and in a more-or-less heartfelt tone: http://en.kremlin.ru/events/president/news/66181 The Putin article is very interesting. I have only an elementary understanding of the region, and only from the viewpoint of the Russian Orthodox Church. While it's true about the history of the old Slavic lands, Holy Rus, and the shared use of Church Slavonic (the old language) [4], how does the former KGB agent of all people not realize how bad the extent of USSR propaganda is [5] [6]? This is the same theme that replays con...
1 comment
Read more

How I became a more avid reader

 Originally written:  11/30/2018   Preface: I want to start this preface to make it clear that I am not the best, fastest, or most avid reader at all. However, I can say that I made significant progress in this area of my life over the past three or four years. This guide provides the reasons and the processes I undertook to try and read more. Because this guide only reflects my experience, it would be wrong for me to think this is universally applicable to all people. However, I again want to show how much I changed along this process. For instance, I recall that I did not read my first book for pleasure until the winter of 2017. On the contrary, in 2018, I read 5 books from front to back so far. Otherwise, between 2012-2016 I only really read for my college classes. My hope is that this guide can help you become better read in topics you want to learn about in time. 1.     Begin with a topic you want to read about. a.     For me, this was a...
Post a Comment
Read more

US 2021 Vaccine Mandate Exemption Resources

  Introduction As the push for vaccination attempts to accelerate in the United States due a recent onslaught of mandates from the Biden Administration, many around the web are struggling to find advice for how to approach mandates at their place of work, and more importantly, how to get around it using exemptions.  Be reminded that approximately 40% of the U.S. population remains unvaccinated as of the time of this writing [1]. Therefore, I have a written document in the links below that some of you may find helpful.  I also have a list of links gathered by myself and by a Brazilian collaborator containing various information we have found helpful. My hope is that someone finds some real utility in this post. Disclaimer: I am not a legal scholar. Take all advice at your own risk, but know that I stand by everything that I have written in the document below. I also had a difficulty finding information that is relevant for non-Christians in the US. If you have information ...
Post a Comment
Read more