The Cardano versus Ethereum comparison is a bit complicated because Cardano has several familiarities with Ethereum since the founder of Cardano, Charles Hoskinson, was also a co-founder of Ethereum. So, most of the setbacks in the Ethereum blockchain are what Cardano has upgraded on, making it the perfect Ethereum killer. Even with all these upgrades, Cardano’s price is still somewhat pocket-friendly compared to Ethereum, although this is relative when it comes to price comparison.
Ethereum and Cardano have several similarities, although Cardano is third-generation crypto and Ethereum is second-generation crypto. Hence, which is a good investment? Should I invest in Cardano or invest in Ethereum?
Cardano or Ethereum?
As mentioned earlier, both have their primary objectives, although they might share a lot of other similarities. Cardano is an open-source, decentralized blockchain that supports smart contract functions. Ethereum, on the other hand, is also a decentralized open-source network with smart contract functionality. However, the difference here is that Cardano ensures to take smart contract applications to the next level by making them faster and have broader interoperability. So, smart contracts on Cardano networks will be moiré accessible than in Ethereum, allowing developers and project owners to create their own DApps.
Note that Cardano is regarded as the Ethereum killer because it improves every setback in the Ethereum network, making it more infrastructurally balanced, improving scalability, and cheaper and faster transaction speed than Ethereum.
When comparing both cryptos by their price, Cardano is currently trading around the $1.5 mark, while Ethereum is about $3,500 points. This means that it’s more economically and financially feasible to invest in Cardano than Ethereum because of the price differences. With just a thousand dollars, you can accumulate as many Cardano as possible, but a thousand dollars cannot buy one Ethereum at the moment. Cardano price is one of the main reasons investors consider investing in Cardano than Ethereum.
Why Should I Invest in Cardano?
Maybe you think the price is the only means of knowing which project to invest in, no it’s not. There are several other factors to consider when considering investing in crypto. If you are making a comparison between Ethereum and Cardano and you are thinking of investing in Ethereum, you should read this just be to be sure you really should pick Ethereum above Cardano.
Although Ethereum has enjoyed several developments these past years, as it grows older, its infrastructure begins to dilapidate, leading to several loopholes in the Ethereum network. Network congestion and high transaction fees are some of the basic loopholes in the Ethereum blockchain and one reason why you should invest in Cardano instead of Ethereum. Cardano uses the PoS consensus, unlike bitcoin and Ethereum that sues the PoW, hence, the issue of scalability. Because there are millions of users on the Ethereum blockchain and it’s still growing, the PoW is unable to handle the network congestion, hence, the treason for the high transaction fees. Thanks to Hydra, Cardano is planning on surpassing millions of transactions per secs. Scalability on the Cardano network is more advanced than the Ethereum blockchain.
Thanks to the concept of the treasury on the Cardano network, any ongoing improvements could be made with the piled funds in the treasury. So, once a new block is mined, some rewards would be deposited into a separate wallet for changes and grants. So, an investor could submit a ballot for the grant on the Cardano network, after which the stakeholders vote and decide if it should be granted or not. Ethereum, on the other hand, has a seemingly centralized system when it comes to the concept of treasury or the issue of sustainability.
There are other factors you should consider before investing in Ethereum. These factors would help you see the reasons why you should invest in Cardano instead of Ethereum. Some of them include governance, interoperability, and philosophy. Careful consideration of these factors will help you understand both blockchains better.