Powerful Moves Require Humility
While the market has been bleeding out during the course of 2022, Cardano builders have been planning and developing in the background. While many other competitors were busy telling everyone how great they were, Cardano was silently proving it. The “slow progress” of Cardano has often been criticized, ironically, by many who are no longer even relevant or currently battling for the survival of their respective chains. Cardano has literally dropped two bombs over the past few days. In a time when many are wondering if certain projects are even going to survive, Cardano announces their side chain, Midnight. The following excerpt is from the official Midnight website:
Midnight will enable developers to quickly build and deploy data protection-first DApps using many programming languages, starting with Typescript, whilst companies will be able to share mission-critical information without the fear of leaks or censorship. Individuals will be able to safely share their sensitive information when operating in a connected world.
Midnight will incorporate privacy-centered smart contracts. Apparently, the privacy features will be compliant, ultimately avoiding “issues”. The other announcement is that of an algorithmic stablecoin to be launched during the first quarter of 2023. Other projects building on Cardano are also making headway, and it appears as if Hoskinson has played this bear market to Cardano’s advantage. As a trader, one of the most important qualities to possess is patience. This too is an incredibly powerful attribute to display when building something as significant as a public blockchain, aimed at scalability and global adoption.
Had investors followed the wisdom of patience, they would not have bought at $25K, $22K, and so on. To a large extent, this is why this market is often so volatile. Impatient, greedy, and unschooled investors are making trading decisions based on hope and opinion. Without a thesis, you have no place in any financial market. It is difficult for many Crypto investors to accept and realize that they are actually gamblers. Perhaps, they will realize it during the next round. Educated and knowledgeable trading decisions have an incredibly high likelihood of success, just as patient and meticulous blockchain builders are more likely to eventually succeed.
As mentioned in a recent post, Cardano appears to be extremely well-positioned to garner significant attention in the next bull market. Even at the current levels, long-term buyers are well positioned, in my opinion. However, I definitely wouldn’t exhaust the “Dry Powder” just yet. You should know by now, I am looking at lower levels, personally. However, that does not mean that I cannot begin modest accumulation now, which is what I have done, as previously mentioned. There is another very interesting angle that I am going to mention, in relation to Cardano’s future potential.
A Credible Threat
I mentioned some time back, that in business, anything that is not considered a threat is simply ignored. When an entity gives negative attention to an industry peer, they are simultaneously disclosing that they are in actual fact, threatened. Outside of Peter Schiff’s vocal and condescending tone is a man terrified that Bitcoin will eventually replace gold, ultimately destroying his business. Bitcoiners should actually be avoiding this guy. By constantly taking up debates, they give him credibility, and ultimately also reveal that they are perhaps not as sure of their own conviction as they would like to think. This behavior was also present within FTX.
SBF chose not to list Cardano on FTX. Sure, you could trade ADA futures, and the platform would generate revenue. However, you could not deposit or withdraw ADA on FTX. At this point, everyone is aware of Sam’s big bet on Solana. Not only has he been outspoken regarding Solana, but by restricting ADA on his platform, he simultaneously revealed where he envisioned the greatest threat to Solana’s dominance… Cardano! Small and even obscure projects built on Solana were given early listings, while a top-tier coin like Cardano was somehow not listed. This was a clear message to anyone paying attention.
Regular readers will be aware of my three chosen layer 1 blockchains for 2025. Cardano has been a key focus over the past few months. However, Solana and Avalanche have also been on my list. Solana is now in an “all or nothing” scenario, which will hopefully become more clear as time passes. I am currently playing out a strategic trade, in order to benefit from either outcome. I just need to monitor the situation and make the appropriate moves at the appropriate time.
Recent events and developments within the Cardano ecosystem have definitely given ADA the upper hand for 2025, in my opinion. However, this industry is extremely unpredictable, as major events can happen at any time, especially now! What I do like about Cardano, is a similar dynamic that I see within the Hive ecosystem. Both Cardano and Hive are rather independent, not being tied to other entities in the form of partnerships and “obligations”.
This to me is extremely important., and is something that I appreciate, even on principle alone. Needless to say, my main focus shifted a few months ago to Cardano, and recent developments are affirming that decision, at least for now.