Last week, we spent some time looking at the historic Ethereum (ETH) Merge, where the network made the switch from proof-of-work (PoW) validation to more secure, cleaner proof-of-stake (PoS) validation. We saw skittish investors selling the news, but over the long-term a faster, more efficient network means a more useful network, which means higher prices.
The change in the world’s no. 2 crypto has had ripple effects across crypto – the three recommendations I made to subscribers are all up nicely since the Merge last week.
Of course, my favorite project, Cardano (ADA) has been a PoS crypto since day one. No need for switching there. The Cardano team, which for my money is the best operating in crypto right now, did it right from the start.
And it’s about to get even better.
Tomorrow, September 22, the team is looking to launch the long-awaited “Vasil” upgrade.
Vasil has been in the works for a while now. The team had originally hoped to take it live earlier this summer, but, in a very smart move, decided to tap the brakes to make sure everything would go perfectly.
Now Vasil’s ready – here’s what to know about tomorrow and what to do right now…
This Is a Landmark Upgrade
We’ve talked a few times this summer about the Vasil upgrade to Cardano – it always seemed to be happening “in the next few weeks,” but team played it very safe in an effort to ensure everything went exactly according to plan.
But now we’re hours away.
I wanted to hit a quick point before I show you how to play Vasil. It gets down to one of Cardano’s main reasons for existing – and a big reason for buying.
One of the things that impressed me about Cardano’s team at the 2017 launch was their comprehensive five-step plan. These folks had a crystal-clear vision of what they wanted their project to be and what they wanted it to do. And they’d laid out, for everyone to see, a kind of road map with practical, well defined steps to get there. No B.S., none of the empty, meaningless buzzwords that get casually thrown around.
Believe it or not, a plan and roadmap are not terribly common in crypto.
One of the most striking things about this plan was the ability to handle smart contracts that settle automatically once pre-determined conditions are met. It’s one of Cardano’s best features, and it’s one of the toughest to do well.
With the smart contract functionality, Cardano’s team was basically sticking a big, bright flag in the ground and yelling “We’re gunning for Ethereum.” Very ambitious.
And while this team definitely has the chops to get there, there’s a ways to go yet. As of this past August, there were around 3,100 smart contracts on Cardano’s “Plutus” platform, compared to millions on Ethereum.
Smart contracts are critically important. The web is transforming, and in five, 10, 20 years, we could be using smart contracts for just about everything. Cardano aims to beat Ethereum and come out the winner that race.
But the Vasil upgrade is a huge step in the right direction, because soon smart contracts will be easier, faster, and cheaper to execute on Cardano. The upgrade should make the Cardano ecosystem more attractive to app developers, as well, with all the cash that can bring with it.
From there it will ultimately snowball. That’s simple economics. Crypto users have a choice when it comes to smart contracts – the questions “How long will it take?” and “How much will it cost me?” are key. If users don’t like the answer, the blockchain will ultimately die. The whole point of the upgrade is to make it easier for Cardano to scale up and handle increasing amounts of users at greater speeds, so the answers to those important questions will be “Not too long.” and “Not much.”
How to Play the ADA Vasil Upgrade
Vasil basically gets us to the halfway point of Cardano’s development plan. That’s much further along than so many other cryptos out there, and it’s a big reason why…
- I want to own this coin
- And I want to buy more every chance I get
Price action won’t be like throwing a switch. ADA is trading for $0.44 right now, but it’s not going to go to $15 eight minutes after Vasil is live.
(That number’s not unrealistic, by the way, but it’s going to take some time.)
That said, Ethereum did hit $3 during the last upgrade cycle. We could see some profits, even in the short term. It’s not unreasonable to expect $1 prices by the end of the year.
But don’t be disappointed if there’s not an instant pop.
In fact, if Ether is anything to go on, Cardano could well take a hit once Vasil is a reality. If there’s one thing traders and investors love to do, it’s selling the news. Let them sell – more for us.
But do not – repeat, not – under any circumstances hit “Sell” on this one, no matter what ADA does. This coin is unquestionably a buy down here at these levels.