Why It Makes Sense to Buy Cardano Now
Cryptocurrency supporters will certainly want to turn the page on 2022, as last year saw the entire asset class shed roughly 64% of its value due in large part to strong risk-off sentiment among investors. Among the main drivers of that sentiment were the interest rate hikes the Federal Reserve implemented to fight inflation. Adding fuel to the fire was a string of high-profile blow-ups by crypto firms that shattered the public's trust in the asset class.
However, there are still some cryptocurrencies that might be worthy of your investment dollars, especially if you take a long-term mindset. Here's why Cardano (CRYPTO: ADA), which ended 2022 down a whopping 82%, is one digital asset that warrants a closer look.
Cardano is a blockchain network that operates under a proof-of-stake consensus mechanism, like Ethereum (CRYPTO: ETH) now does after "The Merge." This system allows token owners to lock up, or stake, their holdings in order to help validate new transactions on the blockchain. It's meant to be far more environmentally friendly than a proof-of-work system.
Source Fool.com
