If Cardano is being used for actual use-cases, ADA is necessary, creating organic demand hence where the value comes in. It would be like a commodity, like Oil… Nobody cares about Oil… Oil has no value within itself… but you need it for running your car (or other use cases). Hence why there is demand for Oil, and it has value.
As of now, no there is absolutely no connection, only speculation. Else ADA should be valued at close to 0 - just like pretty much any project out there, like Bitcoin, Ethereum etc. There is potential value to be realized (which what is being priced in) but it is potential and not actual.
Hmmmmm… This is my concern/worry. I 100% believe that Cardano will have the world’s best blockchain technology. But I am not as convinced that ADA will be used as a currency to the same level of success. (But I hope so!)
I was hoping that there was some unbreakable connection between the success of Cardano and the value of ADA. But alas… as we all know, ADA is not stock in Cardano
It is, you cant use the Cardano Blockchain without ADA.
But right now, there is no one using the Cardano blockchain for anything of value, so as of now there is no connection, that is what I meant. Just like no one is using Bitcoin for anything, but It is still being valued at 100B+ but over time, everything will be valued at fair value. But Cardano is very different from Bitcoin, in that it actually has potential to be used for something.
Ok, I DO get that. So the link between ADA and Cardano is that you will need to use ADA to use the Cardano Blockchain… so kind of like how ETH is needed to use the Ethereum blockchain. Call it “rent” perhaps? (in layman’s terms)
the more ADA is used all over the world, the more the price HAS to increase to keep up with demand (we got coin cap here you know)
You have no ADA but you have 300$
1 ADA = 1$ (by market standards)
A retailer sells a TV you want for 200ADA (and only that)
Most of the ADA is in smart contract circulation (basically automated money transfers when requirements are met)
People who have free ADA on their bank account do not want $, because they can do everything with ADA already.
How do you think you going to get that ADA? You offer more than the current market price.
What happens if you offer more than the current price? Price goes up.
So in other words, once demand is created, this will go out of hands, until you no longer get paid in printed money, but in crypto. to complete the smart contract cycle.
At least this is the world I want to see and work towards. But look around you over half of the people will die before they are willing to work for the cryptocurrency, something like this will take generations. Meanwhile, the crypto price will grow as long as new services are made with it.
When people spend their Bitcoin 99.99% of merchants dont actually get the bitcoin, they dont want the bitcoin, they use a third-party service that gives them currency and the bitcoin is sold on the market to another speculator. So its basically the same as selling your bitcoin on an exchange, getting the cash, and spending it. Every time someone spends their bitcoin right now, it causes price decrease, the more that start spending/using their bitcoin the faster it will collapse because for every purchase, you need to line up a speculator to pay for it.
When you can give me examples of businesses that keep their Bitcoin, sure you can say adoption is starting, but before then, they dont count.
Sure might there be the occasional illegal trade, micro-transaction, private services, money laundering, international transfer or an actual transaction, yeah, but it is such a small fraction - and far less than you believe. The main use-case and demand for Bitcoin is price speculation - and as a anchor trading vehicle for the crypto-market.
Lol, that is already adoption on a massive scale.
I keep buying bitcoin because it costs me 6€ less per 100€ to pay for freelancers who have a shitty banking system.
Sure they take bitcoin out back into their money, but did you not notice? There was bitcoin use case.
But why I buy ADA?
If the Cardano platform produces an option to pay in ADA and smart contract produces practically free bitcoin blockchain. I no longer have to use bitcoin, but can use ADA to pay in bitcoins.