Whether or not Cardano (ADA) will be a currency is a topic of concern for Cardano community, as it has been considered as the commodity. The community believed that it is becoming a commodity instead of real currency.
The current market denotes mixed signals wherein king of crypto; Bitcoin is surging with over 3 percent, other leading cryptocurrencies including XRP, Stellar, Cardano are dipping low with 2.40 percent, 0.32 percent, and 1.98 percent respectively.
Cardano – Will it Become a Currency?
Gerolamo which claims itself as the research-driven publication by and for Cardano, community shared a detailed post yesterday, entitling “Will it (ADA) become a Currency?” Before we go any further, it’s worth noting that ADA cryptocurrency by Cardano platform is currently counted as the 13th largest cryptocurrency in terms of market capitalizations already.
The research report defined ADA as a money with a feature of Bitcoin that makes it available across the world. With instance, it mentioned that the Cardano as a platform is a car whereas ADA as a crypto token is the fuel. It reads that; “if you don’t have ADA, you can’t interact with Cardano.”
Per the research, ADA contains various features, including; ample supply, enough inflation and plenty of merchants accepting it as a payment which is enough to make it a currency but it sticks to explain why will ADA be a commodity than a currency.
Just like Gold, a commodity, where buyers and sellers don’t care about who produced it, Gerolamo research says that the ADA will be a commodity, at least for the long term. Explaining the difference between ADA being a commodity or currency, Gerolamo research affirms that the value of an ideal currency decreases slowly;
Those holding the currency could use it as a store of value but doing that, in the long run, would be a bad idea.
Unlike inflation and deflation in currency, the study claims that the way ADA will be used in the Cardano ecosystem doesn’t affect ADA’s value to see a decline, at least in the long run, it mentioned.
Justifying ADA as a commodity, the blog report added two significant aspects that warrant ADA to be not a currency. It points out that the considerable part of the supply will be locked up in smart contracts, and another part of ADA’s supply, which is presumably higher than the locked on will be staked or pledged. However, according to research, there is less chance for the latter to happen.
To be more specific, Cardano (ADA) will be a commodity or a form of commodity money similar to Gold, the research outlined. Conclusively, it is believed that the ADA’s use cases in the future will be more than the gold as a form of money.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.