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Cardano or Bitcoin? Comparison for Investors Delivers Clear Result

Crypto investors are advised to prioritize Bitcoin (BTC) over smaller caps like Cardano (ADA). Analyst Caleb Franzen shows ADA lost 90% of its value compared to BTC over 34 months. Despite Cardano founder Charles Hoskinson’s claims, historical data suggests long-term investments perform better with Bitcoin, reinforcing its status as the “digital gold.”




Crypto investors often consider not limiting their investments to Bitcoin (BTC), but also considering small caps such as Cardano (ADA). Not a good idea, according to analysts.

Just this month, Cardano founder Charles Hoskinson claimed that ADA will replace Bitcoin (BTC) as the world’s most important and valuable cryptocurrency in the future. This could have been a reason for established analyst Caleb Franzen to present his model calculation on X. The short version: Over the last 34 months, Cardano (ADA) has lost 90 percent of its value compared to Bitcoin (BTC).

Franzen does not use the US dollar or stablecoins as a basis for calculations, otherwise he directly compares the performance of Bitcoin and Cardano

This is a very sensible method, because Bitcoin is the undisputed leading currency for the crypto market. He also refrains from making substantive swipes at Cardano, but limits his analysis to mathematics. Accordingly, since the launch of ADA in 2018, there have only been three short time windows in which the increase in value of an investment in Cardano would have been positive compared to Bitcoin – most recently in the first half of 2020.

Franzen has some good advice for investors in general: In his view, the charts of the Cardano/Bitcoin trading pair make it clear why he only trades altcoins like ADA. Anyone who invests for the long term cannot avoid Bitcoin because the small caps cannot keep up with BTC over the years. This can also be proven for altcoins other than Cardano.

Whether it is Ripple (XRP), IOTA or Tron (TRX), for example: anyone who did not want to participate in day trading and was hoping for good timing when shifting crypto investments would have been best served by simply buying Bitcoin and HODLing their BTC.

Conclusion: Cardano disappoints investors, Bitcoin is the gold standard

Hoskinson’s dreams that this is just a snapshot and that Bitcoin’s success will be exhausted in favor of Cardano are basically out of the question.

If you follow Franzen’s methodology, forecasts of the chances for Ethereum (ETH) as the number one altcoin should also be treated with great caution. It is no coincidence that Bitcoin has earned the nickname “digital gold” for more than a decade – because if there is a safe haven among the volatile cryptocurrencies, it is undisputedly BTC.


(Featured image by Traxer via Unsplash)

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.