The cryptocurrency Cardano is in the process of gaining mainstream acceptance, according to a major US financial services firm.
A portfolio strategist at US financial services firm Morningstar says Cardano could become a mainstream cryptocurrency alongside Bitcoin and Ether. The coin has the potential to become one of the three major digital currencies.
Cardano mainstream crypto
The portfolio strategist who works at Morningstar hot Amy Arnott and shared her views on crypto regulation, Ether and Cardano in an interview with the Insider last week. According to the strategist, it is difficult to determine a suitable price for cryptos. This is because these coins do not generate any money. She then explained that Ether has a built-in price to some degree. This is because it is used to drive decentralized financial (defi) transactions and to support non-fungible tokens (NFTs).
Arnott believes that Cardano (ADA) is a promising cryptocurrency. Which could potentially unite Bitcoin and Ether to form a “big three” of mainstream cryptocurrencies. She explained: Cardano is similar to Ethereum in that it is a protocol with many potential technical applications. There is a lot of enthusiasm about Cardano, as well as about various stablecoins.
Adoption
Arnott also touched on the institutional adoption of cryptocurrencies. The interesting thing about this is what has happened in the past year: that institutional investors have started to adopt a lot more cryptocurrencies and see them as an investment vehicle. As that trend continues, we will see other cryptocurrencies become more mainstream. Cardano is taking the lead in this.
Regulatory risk is a big problem, she says. That has also been the driving factor behind much of the volatility in recent months. If governments around the world were to restrict crypto in general, or some coins in particular, that would be a big minus.
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