Cardano is finally poised to possibly pass Ethereum in the next year. It has almost everything it takes, especially if Ethereum is not able to scale with the ETH 2.0 upgrade. Which, by the way, we will have a big ETH 2.0 content for you next week detailing everything you need to know about the changes. But there’s a shadowy figure lurking underneath the surface for not just Ethereum, Cardano also. It’s called Polkadot.
While many people have been focused on the next Ethereum killer, Polkadot could be the single blockchain smart contract platform, killer. Today, I’m going to explain to you what that means and why Polkadot could be the No. 1 coin you need to be looking at. I’m actually so bullish on Polkadot that I just put $500,000 worth of Bitcoin into DOT. Let’s get it! BitSwap is the hottest new way to trade tokens.
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Details down below in the content. Now, in this content, I’m going to be explaining why you should be watching Polkadot to become the giant in cryptocurrency. And at the end of this content, I’ll be discussing what I expect from DOT in the short term, which you’re definitely not going to want to miss out on. Also, make sure to smash the likes if you want more Polkadot content and want me to go over some major players in the Polkadot IDO space next week.
So, let’s get into it. Why do people love Polkadot so much? Well, it’s pretty revolutionary really. Technology development is a tricky game. You can create the greatest technology ever seen, but you see, technology begets more technology. And faster technology.
And more advanced technology. One instance of this is called Moore’s Law. It refers to the phenomenon in technology and computer science where basically the capabilities of technology double every two years, while the cost to produce it decreases by half every two years.
Pretty insane really. But it isn’t just with computers, we see it with calculators, cars, phones, and everything in between, of course, all those that use computing power, but you get the point. When Ethereum debuted as a decentralized blockchain platform that powers smart contracts, it was also quite revolutionary.
No one had ever done this before! Brand new technology! Immediately, applications of this technology were imagined and suddenly the thought of a utopian decentralized internet sprung up. Now, that’s one of the biggest things that truly attracted me to Ethereum in the first place. But quickly after its creation, even some co-founders of Ethereum began having doubts. They created a Frankenstein monster, but once it became alive, they realized there were several things wrong with it.
One of these co-founders is Dr. Gavin Wood, a man so brave, he wears sunglasses on the top of his head during a TED talk. But he set out to conceive a better technology than Ethereum, but he also understood that Ethereum is going to be a massive player in this space for a long time. So not only did he create a new technology called Polkadot, but he also created it to be backward compatible with Ethereum, something that could end up being the sole force to drive Polkadot to the top.
For someone fully invested in Ethereum and Cardano, I believe the most concerning thing for ETH and ADA is the structure of Polkadot itself. If you think of Ethereum and Cardano as stand-alone interstate highways, Polkadot is basically the “Spaghetti Junction” here in Atlanta. It’s the entire interstate road system connected. It’s a multi-chain network that’s all interoperable. If you’re on I-75, you can go one specific route from Canada all the way down to Miami, Florida. There are a lot of things you can do and a lot of places you can stop, but you can’t stop by the Statue of Liberty.
You also can’t stop by the Golden Gate Bridge. Even when those states finally do open. But with the entire interstate system, you can get to any major destination in America. And that’s the power Polkadot represents. Many people are starting to believe that multi-chain ecosystems are the future. And this works by something called parachains. This actually shows the full structure of Polkadot in this diagram. You have the relay chain operated by validators.
Within that network themselves, there is a parachain and then collators. Now, I could completely bore you by telling you all the details of the tech, but it’s not why you watch this channel. You want to know why this is important and how you can make money with it.
Well, the best way to think about it is in terms of limits of potential. With Ethereum, there are limits for what can be done on its chain without having to create what we call layer 2 solutions, which we’ll talk about more next week. But with Polkadot, everything’s done on layer 1. It was designed like this. This means more potential reach and use for anything built on its network.
And this could be enough to tempt many people and many businesses and many crypto projects to come on over to the DOT’ed side of things. In fact, some say Polkadot DeFi is going to be the home of DeFi instead of Ethereum. Many of the problems that the Ethereum network has suffered such as scalability and gas fees are some of the strengths of Polkadot. They were actually the reason that it was built. Those flaws. And no area will get as big of a boost in crypto other than DeFi by taking advantage of what Polkadot DeFi has to offer.
This was detailed recently in a Cointelegraph article. Its fundamentals are strong, and it’s practically solved the crypto market’s central problem— cross-chain compatibility, which is the ability to transact across blockchains. As a nice cherry on top, Polkadot presents DeFi projects with the opportunity to migrate to a high-performance parachain for improved bandwidth and transaction speeds. As you guys know, we’ve discussed in depth before how the gas fees on ETH have made the whales richer and the retail investors poor.
Imagine being able to go into a time machine and go back to the days of early 2020 when DeFi was basically in its infancy. DeFi projects existed, but yield farming and staking were not really hitting their stride yet. Imagine investing in Compound, YFI, or SUSHI at the very beginning. Imagine being able to yield farm with the highest returns split between the fewest investors.
That could be the opportunity we have soon with Polkadot. While everyone is focused on NFTs right now for good reason, many will miss the opportunity a lot of these Polkadot projects present. But not only is DeFi going to be a huge opportunity for Polkadot, but IoT will also be a huge focus for DOT. Internet of Things devices will be one of the most explosive technologies over the next several years.
In fact, this industry will grow by almost 50 billion devices in the next several years. But hidden within the context of this article is not only what many believe will be the key to IoT growth, but the key to Polkadot’s growth and what makes it so special. It says, the founder of Robonomics, Sergei Loshankov, believes that Polkadot is set to boost the development of open blockchains that have a number of incremental benefits compared to the private, conventional blockchains we’re all used to. He further states that the future of collective governance should not be built around enterprise blockchains but around the distributed ledger ecosystems like Polkadot, which is more cost-effective for the end-user.
That’s right, guys. Polkadot is the key to an open blockchain explosion. While enterprise has been using Ethereum more than anything else, Polkadot could be the new home of enterprise, which was actually the original reason I was bullish on the use case for ETH. Follow the money. If businesses and enterprises use Ethereum, then it will moon. Same for Polkadot. And also, you can think of this as with the end-users getting a huge benefit as well, so it’s a win-win.
But what can we expect to see in the near term for Polkadot? Well, Binance Coin and Cardano have both spent time at the No. 3 spots. Polkadot, of course, did have a turn already at No. 3 a few months ago but fell back all the way to No. 6 as of today. The four top smart contract platforms are all trading turns and spots. So because of this, it’s pretty easy to see that Polkadot at No. 6 is prime to move north again. As an investor, I’m keen to see where DOT will move to.
It’s coming in at almost $10 billion underneath Binance Coin’s valuation at which point you have to ask yourself, with all the development on Polkadot and the capabilities of the multi-chain ecosystem, how in the world is it so far behind Binance Coin’s market cap? The facts are, it shouldn’t be that far behind.
So I fully expect it to pump past all-time highs upwards of $50 per coin in the short term and take that No. 3 spots again shortly. But what do you think about DOT? Will it continue to pump until it becomes the coin of the future? Or are Ethereum and ADA simply superior products? Let me know down below. Smash the likes if you want more Polkadot content. That’s all I got. Be blessed. BitBoy out.