Is It Too Late To Buy Cardano Or Polygon?

Last Updated January 31st 2022

6 Min Read

It is not too late to buy Cardano or Polygon...

It’s still early days for the crypto market

After the huge rally that pushed crypto to a valuation of over $2 trillion, it is easy to feel like the crypto ship has already sailed. However, in reality, it is still early days for anyone looking to invest in Cardano or Polygon or pretty much any crypto project, provided it has a clear roadmap.

Just ask yourself a simple question, how many people you know that use Bitcoin, for instance. Chances are that they are very few. In fact, statistics point to less than a percentage of the world population using cryptocurrencies. Yet, blockchain is hailed as the next big evolution in technology. It is a technology that could re-engineer the internet, disrupt finance, and pretty much every industry out there. With this in mind, it becomes clear that it is still early days to invest in crypto. The upside potential is still huge.

The Crypto Market Follows Bitcoin And It’s A Good Thing

As presently constituted, the crypto market follows Bitcoin, and this is unlikely to change any time soon. So one way to tell how early or late you are is to look at Bitcoin’s price potential.

Bitcoin is increasingly being accepted as a potential alternative to gold as a store-of-value. This has played a huge role in its uptake by large institutional players such as hedge funds. In a CNBC interview in April last year, Miller Value Partners CEO, Bill Miller stated that Bitcoin is better than gold as a store of value. He added that it is easier to send Bitcoin to any part of the globe than moving a bar of gold.

This should give you an idea of the kind of thinking that institutions have of Bitcoin. Given how limited the supply of Bitcoin is, institutional adoption could easily push Bitcoin to a million dollars per coin or more. For context, Ark Invest CEO Cathie Wood, said that if S&P 500 companies were to put just 10% of their cash reserves into Bitcoin, the price could easily rally to over $400k.

So how does all this connect to Cardano and Matic? Well, like every other cryptocurrency, these two projects follow Bitcoin’s price action. In the first crypto rally in 2021, when Bitcoin hit $64k, Cardano tested highs of $2.46, while MATIC hit highs of $2.62. Both were trading below a dollar before Bitcoin started to rally.

Extrapolating the same, if Bitcoin ever rallies to over $500k, which is very possible given the growing institutional adoption, these two could easily test prices above $10. That’s huge potential when you factor in their current prices. From this perspective, it is still early days to invest in these two.

For context, $50,000 put in Cardano today would give you 49,019 ADA. If Cardano hits $10, that investment would be worth close to $490k. If $50k is a lot of money for you, consider the fact that if you put $10k in ADA, there are good prospects that your investment could be worth upwards of $98k if it hits $10. The same goes for MATIC.

Clearly, there is an opportunity to make money. The long gone opportunity is that of putting in $1000 and expecting to make a fortune. That opportunity is long gone with these two, and you would probably need to look further down in market cap rankings.

Both Have Sound Fundamentals

Besides the fact that they are pretty much guaranteed to gain once Bitcoin starts to rally, Cardano and Polygon cryptocurrencies have solid use cases.

Cardano

Cardano is one of the most fundamentally strong cryptos in the market today. It has solved the problem of scalability while at the same time guaranteeing decentralization. This is a big deal considering that most blockchains are unable to do it. Even Ethereum has been struggling with the scalability problem for a while now.

Cardano solves this problem through hydra. Hydra is a layer 2 solution that works perfectly with Cardano’s Proof-of-Stake algorithm. The solution allows Cardano stake pools to create their own hydras with the ability to process up to 1000 transactions per second. In essence, the more stake pools on Cardano, the more hydras can be created. This chain creates a scenario where Cardano can handle millions of transactions per second, easily rivaling centralized systems.

The beauty of Hydra is that it takes off the pressure of each node requiring huge storage space. It can also execute smart contracts so that developers can build a whole ecosystem of Dapps on Hydra. And it’s not just Dapps, but Dapps that can handle real-world applications such as payments fast and securely.

Besides the scalability potential of Hydra, it is essential to note that Cardano uses a functional programming language. This means pretty much anyone can build a Dapp on Cardano and easily test whether it will work as expected or not.

All this makes Cardano primed for adoption in everything from finance, gaming, social media applications, and even by governments. With such fundamental strengths and the fact that blockchain is still in its infancy, the sky is pretty much the limit for Cardano.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Polygon

There is this fear that Ethereum Optimism will make projects like Polygon obsolete. That’s because it solves the scaling problem that is the basis of existence for projects like Polygon. Such fears are compounded by the approach that Optimism is taking towards Ethereum scaling.

Optimism uses Rollups for scaling, making it more secure and fast in scaling. On the other hand, Polygon uses Plasma, which has challenges when moving assets back to the Ethereum mainnet in the event that that a sidechain is under attack.

However, Polygon too is working on adding Optimistic Rollups. This means that it will have a place once Ethereum 2.0 scaling solution is implemented. Rather than compete, there is a good chance that Ethereum Optimism, Polygon, and many other L2 solutions will co-exist.

The underlying goal is to make Ethereum more efficient for use, as the platform that anchors the next evolution of the internet. Polygon could experience major growth in adoption by centralized organizations that want to build applications on the blockchains.

The project already has a large and growing ecosystem of Dapps, and as the adoption of Ethereum grows, Polygon adoption will grow as well. This is a project that has a use case in everything from gaming to decentralized exchanges. It is also important to note that, unlike Optimism, Polygon has a token that investors can speculate on. That’s attractive in its own way.