Bitcoin ‘not seen as a currency for transactions’ says expert
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The cryptocurrency market has lurched through 2021, with several altcoins ripping through it. The many emergent candidates, among them Dogecoin and its relatives, have helped mould a new exchange. Bitcoin has managed to stay ahead of the crop, but other coins are steadily gaining pace.
Could Cardano take over from Bitcoin and Ethereum?
Bitcoin is currently in the cryptocurrency market’s top spot at roughly $48,415.48 (£35,166.59) per token.
Ethereum occupies the spot behind but is worth more than ten times less at $3,238.77 (£2,352.48).
Both coins remain highly favoured amongst traders, but they have a drawback that has made them less appealing to industry leaders.
End of Bitcoin? How Cardano could take over BTC and Ethereum (Image: GETTY)
Cardano: Cryptocurrency generates significant electricity and fuel in kind (Image: GETTY)
And they use significant amounts of electricity to “mint” coins, meaning they require fuel.
Bitcoin creates an estimated annual emissions of roughly 57 million tonnes of Co2 per year.
Even several smaller countries fail to produce as much, and investors have stepped away due to this.
Elon Musk cited the reason as he temporarily suspended Bitcoin transactions for Tesla earlier this year.
Cardano: Cardano’s current price (Image: COINDESK)
Another cryptocurrency, Cardano, could fill the gap in the market for a “green” token and usurp BTC and ETH.
The coin is currently the third most valuable, worth $2.85 (£2.07), and has room to grow.
Cardano’s blockchain platform produces an integral cryptocurrency named ADA.
Ethereum co-founder Charles Hoskinson launched the currency in 2017 and built it on a proof of stake blockchain model.
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Cardano: Cardano has an upgrade coming up which recently caused its price to surge (Image: GETTY)
The alternative model doesn’t require the same network to produce coins.
Instead, people receive coins via random allocation, who put up more for collateral.
As such, it can shed the global energy consuming network required for Bitcoin.
And it has reaped the benefits in recent weeks, especially following the announcement of an upgrade.
Cardano is anticipating the launch of Alonzo, an upgrade due for release in September.
Alonzo will add smart contracts to the blockchain, allowing it to automate agreements and eventually deploy smart contracts.
Developers announced the upgrade in mid-August when exchanges valued the token at $2.11 (£1.53).
Cardano has since jumped significantly, by nearly 15 percent over the last few weeks.