Cardano Dan's Newsletter - Issue #2
Welcome to the quick hitting newsletter about Cardano, Crypto Trading, Blockchain, Monetary Policy, & Data Privacy
Innovation is not easy. In fact, it’s quite hard. But when it is done well, it often results in new technology that changes the world. World-changing technology, it turns out, can generate a lot of economic activity. Consider the Industrial Revolution as one example.
This is why governments and corporations spend so much money on Research & Development. Because R&D provides companies with the possibility of an economic leg up on the competition and it give countries a military leg up.
But doing hard things isn’t just about getting a leg up, it’s also about testing oneself.
Quote of the Day
JFK’s famous speech gets to this point. It’s also a wonderful coincidence that it’s about going to the MOOOONNNN!!!!
We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.
If you’ve never watched this speech, you really should. It’s moving. Here’s the portion I quoted.
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Cardano Nuggets
The Cardano Team is working hard so that you don’t need to. Unlike Ethereum, on Cardano, fees required for a valid transaction can be predicted precisely prior to posting it to the network.1
Sticking with the Theme
Did you know that the military and NASA have a whole system they use to evaluate the “Technology Readiness Level” of new technologies? They do this because new things take a lot of time and effort to develop and can have life-threatening consequences if technology is deployed before it’s ready.
Seems like a pretty good idea to use a similar approach when going about designing the next financial system of the world. This is why the Cardano team is taking the research driven, formal methods approach to developing Cardano. The results are beginning to pay off.
You can read more about Technology Readiness Levels here.
Around the Block
FD7, a global crypto investment fund announced plan to sell-off the majority of their $1 Billion USD in Bitcoin holdings to purchase Cardano and Polkadot over the next 30 days. More and more big players are starting to talk about Cardano.
Investing Angle
Last newsletter, I encouraged you to be intentional about your investing in cryptocurrencies. Let’s take this a step forward with a quote from the book Market Wizards by Jack Schwager. Jack quotes Michael Marcus as saying, “If you don’t stay with your winners, you are not going to be able to pay for your losers.”
All trades are not profitable. You need to be prepared for losing trades and you need to be prepared to ride your winning trades. To “ride” a winning trade, it needs to be something you can hold onto for some period of time.
There’s a lot of coins that will pump like mad, but they’re not things you’d want to hold onto. Consider limiting your trades and investments to coins and projects that you’d be happy to ride for a while.
This is why I have a “Do not trade” list. Dogecoin and EOS are examples of coins I won’t trade because I wouldn’t be comfortable holding them for any period of time.
Technical Analysis
Cardano $ADA continues its phenomenal run of late. At the time of this writing, ada is challenging all time highs (ATHs) of $.1319 per Binance USD calculated charts (red horizontal line). It’s also testing the resistance of a rising wedge.
Cardano isn’t going to go straight up. You should know that. At some point it will pause or correct. This could be one of those moments.
That being said, it did just correct rather significantly when it pulled back from $1.20 to $.81. And, it’s performing extraordinarily well at the moment based on fundamental news about partnerships and technical progress and I don’t think that’s anywhere close to done.
If Cardano breaks above the ATH and establishes it as support, we’re into price discover and that is going to be a lot of fun. If not, I could see us consolidating around ATH for a little while.
This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.
https://iohk.io/en/blog/posts/2021/02/25/babel-fees/