What JUST Happened to Cardano [ADA Crypto]

hey everyone we kevin here in this video

we're going to talk about the third

largest cryptocurrency network cardano

we're going to talk about some of the

differences between bitcoin ethereum and

cardano why i'm so interested in cardano

am i investing in cardona what happened

on sunday what's happening in the charts

everything that we need to know about

cardano but first before i get started i

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credit card all right folks let's talk

about cardano so cardano is a network

like a bitcoin and ethereum r and

bitcoin is deemed to be generation one

mining to verify transactions and a

proof of work to verify that you are a

legitimate miner so to speak ethereum is

deemed to be generation two it also

follows mining and a proof of work

architecture but it allows d5 through

smart contracts which is kind of cool we

like decentralized finance we see a lot

of hope in it

now cardano is generation three and so

is another network called polkadot but

we'll talk about that as set in a

different video that's their token dot

and uh that is a competitor to cardano

as well and there are many other alt

coins even a shout out to solano and

other coins but in this video we're

specifically going to focus on cardano

in cardano third largest cryptocurrency

here tries to solve some of the problems

of ethereum specifically high gas fees

especially for transactions uh and speed

issues which cardano tries to solve both

of these and the fact that it uses a lot

of energy now ethereum is fast ish

sometimes you have to wait in sort of

cues or pay higher fees to get things

moving faster

and because cardano uses a proof of

stake model it is deemed to be less

expensive and more efficient solving the

issues and now being able to process

smart contracts as well so let's break

this down a little bit because i just

said a bunch of things that might lose

some of y'all especially since we talked

so much about stocks and real estate on

the channel of course we talk about

crypto as well but we've got to break

some of these things down just to make

sure you're caught to speed so if you're

used to this you can fast forward a

minute or just listen to it anyway to

get my take on this so brief overview

okay

proof of work and proof of stake are

both versions of verifying transactions

or they establish your right to verify

transactions your legitimacy to verify

transactions in proof of work which is

what bitcoin uses and what ethereum

currently uses and we'll talk about

ethereum 2.0 in just a moment but in

proof of work you're basically solving

computational problems

for transactions to verify that

transactions are accurate these

transactions are puzzles that are

designed to be hard to solve and only

the computer that mines the transaction

the fastest and correctly ends up

verifying the transaction and getting

paid a reward in the proof-of-work

concept this creates a lot of

competition for individuals and burns a

lot of power current estimates are that

bitcoin burns over 115

terawatts of power per

year now bitcoin maximalists say that

that's okay we've got to get to this

threshold of burning a lot of power and

then we can support a lot of

transactions without actually the

network extrapolating in its power use

because once it's up and running it's

kind of like turning the light on it's

on now we can do things under it and we

can do things under that network without

in a large way increasing our energy use

it's an interesting argument but still

burns a lot of power and even though we

hear things like oh but 70 percent of

bitcoin energy use uses some form of

renewable energy the statistics are

really unclear what some form of

renewable energy is for example just

because a bitcoin miner uses one solar

panel could in theory make them using

some solar or renewable energy and that

obviously doesn't mean all of their

production is renewable now obviously

with china's latest ban a lot of fossil

fuels being burned in china for crypto

mining and this this ban on crypto

mining we've seen a lot of crypto mining

move to uh california california canada

and uh north america which is great

especially shout out to companies like

hud 8 mining super excited about the

company

but what you're seeing is a frustration

over the energy use for bitcoin mining

and the second problem is it takes about

10 minutes to process a bitcoin

transaction block that means it takes up

to 10 minutes for a bitcoin transaction

to be validated that's a lot of time and

some people make the argument hey if you

were buying a cup of coffee you don't

want to wait for 10 minutes for the

register to go boom all right your

transaction went through right now there

are arguments that there are upgrades

that are going to come to bitcoin to

solve this to make bitcoin rather than

just a super secure store of value also

something very useful for transactions

but bitcoin's failures here have given

rise to ethereum but ethereum while it

can process transactions faster much

faster than bitcoin the fees are high

and the fees are high and the energy use

is high for ethereum to actually process

transactions ethereum presently still

uses a proof of work model as well proof

of work means we're burning a lot of

energy just like bitcoin but a fraction

of the energy that bitcoin processes uh

so that's a good thing we're already

improving right we're going to less

energy use but we're still in a

proof-of-work model

this brings up proof of stake which is

very different staking really reserves

excuse me sticking really refers to

people depositing their cryptocurrency

or their ass at their coin into a pool

known as a staking pool that money in

that pool then acts as a validator to

ensure integrity and security in the

network and really rather than a bunch

of competitive miners trying to verify

proof of work transactions what you have

is every individual staking pool for

cardano getting randomly assigned

transactions to verify based on the size

of their their staking pool so if they

have about three percent of all coins in

their pool they'll get randomly assigned

about three percent of transactions now

there are redundancy measures obviously

built into all of these different

cryptocurrencies i like all three of

them i don't want anybody to think i'm

bashing bitcoin ethereum here love all

three of them just talking about cardano

to introduce you all to it a little bit

but staking makes a lot of sense if

individuals are placing their money into

a pool it's essentially a version of

them saying i trust this pool with my

money i'm going to give this pool my

money let this pool verify transactions

and then when we verify transactions

will get paid on those transactions and

that's how in the defy space or in the

staking space you can get paid a yield

on your crypto currency it's because

you're getting paid for verifying

transactions

problem though until sunday has been

that cardano has not in mass been able

to enable smart contracts

but that all changed this weekend we

finally got smart contracts on the

cardano network which is really exciting

because we've now moved on to a period

of time or an epoch known as epoch 290

via the alonzo upgrade and this alonzo

upgrade finally enabled us to have smart

contracts on

our cardano network which is exciting

because this now means not only can you

stake your cardano but you can do nfts

and many different things i'll talk more

about smart contracts in a moment but

it's worth mentioning that there are

even this is getting so popular just

sort of a quick sidebar this is getting

so popular now that there are even

companies and this is not sponsored like

bitcoin suisse as opposed to credit

suisse there's bitcoin squeeze and not

sponsored which allows you to stake your

cardano without lock-up periods and

offers you staking back to loans in

addition to paying you for staking your

crypto but but they'll also offer you

loans it's incredible

now i personally get scared of taking

out debt on crypto i i never recommend

that but i just want you to know kind of

how much this is evolving it's

incredible so anyway uh cardano now uh

enables smart contracts which is super

exciting and that's really what this

alonzo upgrade on sunday brought this

means we can now and i wrote down a list

here this means we could do things like

swaps nfts stablecoins microfinance

micro insurance insurance in general

crop insurance trials for science faster

settlement you could sell your data you

can uh you know some people say do real

estate transactions you could kill the

middleman blah blah blah blah you know

to me

look i love smart contracts i want to be

very very clear that i'm bullish on

smart contracts ethereum is uh has been

using smart contracts ethereum nfts we

hear about these all the time ethereum

currently supports 13 transactions per

second which is much better than bitcoin

cardano however not the one up but

cardano right now supports 257

transactions per second but both of

these are still totally babies i mean

visa does like 30 000 transactions per

second and in fairness shout out to

ethereum ethereum does expect to scale

up in the future to a thousand

transactions per second with the release

of ethereum 2.0 which is expected to

come at like the end of 2022 maybe

beginning of 2023 uh but then at the

same time cardano also expects to

upgrade to hydra scaling where it would

enable one million transactions per

second which is like whoa that's like 20

25 times as much as visa uses right

anyway a lot of information there

basically upgrades coming to these

networks all of the freaking time and

since we're talking so much about smart

contracts it's worth just giving a quick

example and i'm going to go into my

opinion where i think there are benefits

and we think they're failures of smart

contracts so smart contracts are

designed to be very black and white if

you can program an if then statement

into a contract then it's good if i

receive five dollars i will give you

an nft or

an insurance contract

but one of the problems and this makes

sense right it's kind of like you put

five dollars into paypal to buy a

fortnite skin you get the fortnite skin

everything should work totally fine you

put a dollar into a vending machine you

should get that that bottle of soda or

whatever and the theory is that these

algorithms that exist in the

cryptocurrency network will essentially

have access to your money or your

product on each side and immediately

bestow rights for each thing

the problem where in my opinion smart

contracts get a little bit blurry is is

when people start suggesting that smart

contracts are going to be able to take

over everything

like getting rid of escrow in real

estate or lenders in real estate just

because in my opinion and i believe

there's going to be a lot of automation

coming here i'm not trying to bag on

smart contracts i just want to be clear

there are a lot of cases where

discretion is required consider this

what happens when there is a leak on a

property let's say i'm going to give you

a real example because this happened to

me so i have an insurance contract and

let's say water backs up out of my

toilet and uh

the sewer backed up and the insurance

company will only pay the claim

if there was actually damage uh from

this backup to the other part of the

property or somewhere throughout the

property uh but they will not pay the

claim if there was no damage because

they don't cover sewer line damage but

they would cover water damage on the

inside so like the sewer's broken backs

up they don't cover that this actually

happened okay but if the sewer floods

the house and there's damage they cover

that but somebody like a human in my

opinion has to determine okay this

backed up in a bathroom did this damage

happen because the shower you know

somebody let water out of the shower was

it pre-existing is it present is it

debatable were there pictures before and

after now i think algorithms can get us

very very far so don't get me wrong i am

very very excited about smart contracts

in in algorithms and systems but i do

think there are going to be a lot of

things that will still require a human

touch like

underwriting uh for for people can we

underwrite somebody's loan without a

human

many would i think argue yeah you can

look at credit score dti you either fit

the box or you don't but when look i was

a licensed lender there's a lot of

discretion there are a lot of things

that are like hey write us a letter of

explanation about this and let's try to

sniff out if there's fraud or not right

so there are a lot of things in life

that are discretion based so i think we

can't go too far yet assuming smart

contracts are going to totally take over

the world and you're not going to need

real estate agents anymore and

personally i don't care okay i am a real

estate broker so bias aside i want to be

fair though i don't do transactions

anymore i use other real estate agents

who send me their deals people call me

up they're like kevin there's a good

deal i use them to sell it to me like my

license i don't use it at all so i'm

just trying to be put all my biases on

the table but then also

tell you like everything that i've got

so anyway

uh you know in in smart contracts there

are going to be issues here where

there's discretion and anytime there's

discretion in d5 you lose the benefit of

things like fraud protection or fdi

insurance or or potentially and i don't

know and potentially what about errors

and emissions insurance because if what

if like your underwriter or your

attorney makes a mistake right and you

want to sue them well there's no d5

court system but this is where things

get interesting and this is me

speculating okay this portion has been

my opinion this is me speculating i

wouldn't be surprised if for these

discretion things in the future

you kind of have this this contract

where you go through all of the if thens

okay do you qualify or or was there a

leak uh was there damage yes no you know

those are all simple if then if then if

then but maybe then you get to the

discretion question and you use smart

chain or smart contract technology and

d5 protocols to to put up for a vote

hey do we think this one part of the

transaction it was this water damage

caused by the water backing up from the

toilet which was a cause of the sore or

which was a result of i should say of

the sewer backup or was it pre-existing

what does everybody think and maybe it

goes out to like a special pool of d5 uh

you know building renovation contractors

or underwriters in the d5 space right

and they get paid for basically their

their expert vote on something who knows

i don't know i mean in theory i think

there is a way to have almost this like

dispute resolution through smart

contracts uh by putting it up to a vote

of of many uh experts and then paying

for that so i think there are

solutions where discretion comes in but

i want to be clear this is very very

young technology it's very easy to go oh

smart contracts solution everything but

when you start looking at

discretion in in life it's like oh man

yeah there could be a lot of discretion

involved so anyway worth noting that but

again i imagine a future where these are

all solved

in the meantime though kind of

rewinding back to uh smart contracts

ethereum is obviously booming with smart

contracts like all nfts are almost

ethereum based well i shouldn't say all

because you've got plenty of other d5

protocols right now that do their own a

lot of them are ethereum based though

it's worth noting but there are plenty

of other coins that do nfts as well

but anyway

cardano this sunday within 35 minutes

already had 35 smart contracts up and

running for what it's worth there has

been skepticism with cardano though

before even this sunday

one notable issue was that there was a

decentralized exchange or dex they call

it known as min swap and minswap ran

into what was called a concurrency issue

using cardano basically it meant that

only one transaction could be done per

block which every block is 20 seconds in

cardano and this is really a problem

because

think about the easiest analogy to

understand concurrency is think about

like a punch bowl and imagine you're at

a party you know usually if you're at a

party and there's a punch bowl in the

middle of the table you could in theory

have a bunch of people reach in and grab

bowls of juice at the same time and

somebody could be standing above pouring

in juice right well a concurrency issue

means one person can't take at the same

time as somebody else is taking because

what if there's only enough juice for

one of them

and a concurrency solution is making

sure that multiple people

can interact with that punchbowl at the

same time i'm way oversimplifying okay i

understand that

and if you have a simpler analogy for me

please leave me a comment down below i

will read them but anyway uh this is

already good though because compared to

bitcoin you're processing one block

every 20 minutes uh ethereum does a

block in about 10 to 20 seconds so

you've got some similarities here but

there was a

problem with with minswap in cardano and

some folks who've looked into this

believe that the issue with cardano's

concurrency flaw here was that somebody

basically took

their smart contract code from the

ethereum network and tried to apply it

to cardano without properly adjusting

for cardano's code and so you've had

charles hoskinson say hey this is

nonsense like there's no issue here if

you actually wrote the code correctly we

wouldn't have issues but but this did

lead to a little bit of um

chest pain for some folks involved in

cardano and we saw the cardano price

fluctuate a little bit because of this

so

worth noting that

there are always going to be issues but

generally we're going to get through to

solutions in all of these cryptocurrency

things and i really i haven't taken the

time to talk about my thoughts on smart

contracts yet and especially cardano and

i have to say the more research i do the

more excited i get about my portfolio

allocation which i want to look at

cardano in just a moment here on on

we'll do some ta but

i think it's worth mentioning that my

portfolio is uh future allocations are

going 20 bitcoin or to get my portfolio

to 20 bitcoin it's a little unbalanced

right now because i already have larger

bitcoin positions but anyway 20 bitcoin

going forward 40 ethereum going forward

and 40 cardano going forward ada i'm

very excited by this but i'm kind of

having this this three coin basket here

to diversify a bit within the

cryptocurrency space and then i am

keeping cryptocurrency at under uh five

percent of my portfolio at the moment so

for what it's worth uh but let's also

now look at some ta for cryptocurrency

it's worth noting that uh i uh

originally

bought good chunks here of cardano uh

right around here uh middle of june and

middle of july while crypto or cardano

was dancing around a buck six a buck

eight a buck twelve uh we had some

purchases right around buck thirty three

thirty two twenty nine and recently it's

skyrocketed to as high as three dollars

so uh for all those of you who get

alerts in my stocks and psychology of

money group which is linked down below

40 off for another 10 days uh you can

you can see all my buy sell alerts i

send them every time options stocks

crypto everything whether i lose or make

money i i'd be very transparent about it

but anyway uh yeah we also bought some

of the dips over here somewhere around

232 which is not too far off of where it

is right now

but what's worth noting is when we zoom

in over here we're going to get to where

we had our alonso upgrade and there's

something fascinating that happened here

there were a lot of uh

media reports that cardano was going to

skyrocket because of alonso and this was

saturday right here saturdays when

cardano all of a sudden went from

dollars somewhere around

three cents to two dollars and eighty

cents we had this massive push on

cardano here because a lot of folks were

saying that's it we've uh we're uh you

know cardano's gonna go to the moon and

so it attracted traders lots of traders

who were looking to make a quick buck

over the weekend

and you got all these traders surging in

i think that's what led to this break

out here of cardano back to the 280

range and then unfortunately when the

alonzo upgrades started going live we

actually had a a fall right before and

actually the the network went live right

here at about 2 45 so you kind of had

this fall right before the network went

live and you had this continued bleed

out the rest of the day just a bit back

down to that 237 range and i really

believe that this right here was just

fugazi by the rumor and this was sell

the news nothing went wrong with the

network but i think people were

expecting oh cardano's gonna surge

because all of a sudden this network's

gonna go live and people are gonna buy a

10 million nft through sotheby's on

cardano like i think people's

expectations were a little kooky for

this sunday because

the cardano founder charles hoskinson

who is the co-founder of ethereum

he said himself this is supposed to be a

non-event like a good launch is nothing

happens

a good transition is literally no news

and so no news was good news this sunday

and that's what we got no news is a good

news so really in my opinion this surge

should have never happened we should

have stayed in this channel right here

and then really you wouldn't have seen

any of this this nonsense that we had in

the last few days this right here was

just noise and so now we're kind of back

in this channel over here and this is

what i'm watching is this channel uh

really it's it's a little bit of a wide

one but it's between that 250 to 230 ish

range kind of a triple uh channel here

i've only got two lines drawn but you

kind of get the picture so anyway i like

cardano i personally would love for it

to fall back to the one dollar range

because i'm very bullish about it and

i'd be happy to buy more of it rcc is

obviously something i'm interested in

right now which is real estate cash

crypto and uh then we'll transition as

other opportunities come up inflation

came out today a little bit lower than

expected but uh cryptocurrency

held held pretty well even though uh

inflation was starting to kind of show

its little sign of peaking and

reflecting down the next two months

should be pretty interesting though with

the september and october inflation

readings coming out october and november

so we'll see if we get a bigger drop in

those two months in inflation and if

that has any impact at all on

cryptocurrency so

my thoughts on cardano a little bit of

ta a little bit about smart contracts

and background let me know what you

thought about this video

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the next video thanks bye

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