Why ADA will become a standard currency in the future


Welcome everyone. I wanted to do a quick
video about a recent trip that I made It was to Walmart, but this has inspired
this video. I had to run to Walmart quickly to run a couple of errands pick
up a few items. As I was running in the store, I noticed that there were dollar
bills just scattered all around the parking lot. I had other things to do. I
ran in the store quickly couple minutes later I’m out. By the time I got back out
I noticed everything was gone. There was no one in the parking lot prior to
me going in the store not many people in the parking lot so obviously someone
picked it up and it really got me thinking what is the value of a currency.
Why is it that the depreciating dollar people will break each
other’s necks to get that next dollar and the dollar is devaluing, but it’s
still the standard it’s what you can use to buy items purchase items and purchase
services and it’s going to be like that for the foreseeable future. I guarantee
you if you put a Tangem card with 10,000 ADA on the street
and you labeled it and then you put a hundred dollar bill people would
probably choose the hundred dollar bill nine times out of ten you have to know
what Cardano is in order to understand what the value of that card is so that
being said we’re going to try to analyze why I think that Cardano will be a
currency in the future one of these things that I look at when I’m investing
in blockchain projects or investing in cryptocurrency is this idea of a closed
loop system or the first law of thermodynamics says that energy cannot
be created or destroyed it can only be transferred from one form to another so
I try to apply this to cryptocurrency and what blockchain projects or what
cryptocurrency projects out there have this sort of closed loop system where
value stays within that system while you can say that the dollar
there’s a lot of value that leaks out of the system because of all the printing
at the end of the day most people spend their money and even the people hiding
their money under mattresses for hard times eventually they they pick up that
mattress and then they take that money and then
they spend it people are quick to spend money people are quick to not hoard
money and if they’re hoarding money I mean they’re putting in a bank account
but they’re recycling it they’re recycling it constantly so how can we
move from this culture of hoarding cryptocurrency to a culture of spending
cryptocurrency and I think that proof of stake protocols or proof of stake
blockchains are going to be the first ones in starting this wave to actually
start spending this cryptocurrency spending the tokens within a blockchain
and the reason why is because if you compare proof of stake to proof of work
for example let’s take Bitcoin. Bitcoin is proof of work there are plenty of
very rich wallet addresses that stay untouched. Satoshi’s wallet has
a million Bitcoin it’s either lost or destroyed and the first law of
thermodynamics says that it’s not really a closed system if things are being
destroyed and I know that appreciates the value of your Bitcoin but at the end
of the day it’s a hoarding mentality because even the rich the richest
Bitcoin holders they have their Bitcoin somewhere in vaults in Switzerland
they’re not motivated to spend their Bitcoin and let me tell you something
about the ultra ultra rich at least this is a theory or a hypothesis even if
Bitcoin goes to a hundred thousand dollars they’re still not gonna spend it
they’re still not gonna spend it it’s like a piece of art for them it’s just
gonna sit in that high secure cave they don’t even need it just like people buy
very expensive pieces of art and they just lock it away there’s no utility for
it these ultra wealthy are not going to sell it’s going to be a token for them
just like an expensive car that they don’t drive it’s just another expensive
memorabilia that they can use to pass on from generation to generation but most
of them have the money already most of them with extreme wealth already have
the money they’re not going to they may they may take some but they’re not going
to be incentivized to really spend that money on the other hand we have proof of
stake so we take cryptocurrency that Cardan. There are a
lot of whales within Cardano, but when Shelley starts, when staking starts,
you’re gonna see these wallets they’re going to go from inactive to active because no one’s going to miss out on appreciating their
ADA holdings and participating within the network in all these transactions
that are happening within Cardano are generating transaction fees and money is
going to be moving here and here and then those transaction fees get moved to
the Treasury and it’s kind of like this closed loop system where all the wallets
all the money is circulating and I think that it’s going to be a I’m not going to say all the money is going to be circulating, but there’s going to be a
lot of money that is going to be incentivized to circulate a lot of
people are going to be spending their ADA rewards and they’re going to be
spending and validating blocks within the blockchain and creating this healthy
ecosystem of spending and receiving. It’s about finding that balance in addition
when we have Bitcoin there’s a lot of Bitcoin that’s been lost over the years
and more and more Bitcoin will be lost more and more and more often and
this just incentivizes people to while it does increase the value of BTC
inherently it also creates this notion of fear amongst the Bitcoin community
that I don’t want to lose my coins I don’t want to lose my coins so
I’m just going to store it away forever and I just don’t think that Bitcoin will be
used as a currency I think it’s just going to be used as a store of value but
what about currency we’re looking at this word currency where can we insert
this word within Cardano. On the other hand, Cardano’s working on various
different things to make sure that the community is as invested in the
project as they are, so whether that be the Treasury system, whether that be
multi-sig, whether that be just being able to participate and delegate to a
staking pool people are going to be extremely happy to
produce value within this ecosystem and I saw a project by Robert and we’re
gonna have him on the Cardano Effect and he did a project a quick
shout-out to him he did a project called Syre and basically validating the
addresses within a blockchain so people feel more comfortable spending money
without feeling like they’re sending it to the wrong address so I think that all
these different features all these projects are going to be working in
tandem in order to increase the value of ADA and ultimately lead to a more fluid
ecosystem or fluid blockchain. I just don’t see it for other blockchain
projects especially proof-of-work projects. I feel like it’s going to be
just hoarded them till the end of time and I like to leave you with this
because I know a lot of people probably have heavy BTC bags, but this is not a
hate on BTC it is what it is but if you choose the right altcoins if you choose
the right alt projects and they deliver what they’re supposed to deliver they
will outperform BTC even if BTC goes to $100,000 what is that is that
like a 12x from here it will be easy for Cardano to hit 12x if if we hit our goals
and there going to be other projects too but you have to pick correctly Bitcoin
is of course the safest investment relatively the safest investment,
but the correct alt choices will outperform BTC so even this idea of a
store of value you can argue that at this point of where
we’re at I don’t know if we’re in bear market still it’s not even
that’s not even an argument anymore because right now it’s probably better
of a store value if you pick the right alt coin then if you pick Bitcoin that’s
just my opinion we’ll see how it plays out I think I’m going to be correct but
what do you think about currency what do you think about us trying to take what
we learn from the dollar and try to create this more fluid environment.
Even people that are performing illegalities within the Fiat
system they’re constantly washing their money their money is circulating it is
circulating there’s not a lot of people and if you stack too
much money in your house eventually someone’s going to break in and take
that money and spend it for you so that’s what I think and I’m looking
forward to see which projects are actually adopted as currencies and I
think Cardano is going to be a very healthy system to start this transition
to electronic currencies so that being said until the next video thank you

100 thoughts on “Why ADA will become a standard currency in the future”

  1. Love your channel for it's solid, balanced, non-FUD, non-FOMO analysis. You are eloquent, respectful, and analytical. Other youtubers can cover news, but very few analyze it as intelligently as you do. I hope your channel continues to grow.

  2. May I pick out a flaw in your thinking? 1) Why do you think that a private company with a CEO will ever be the one to make world reserve currency that countries adopt. In my opinion this is the primary reason I never want Satoshi to come back. It will be a fatal shot to Bitcoin ever becoming world adopted currency.
    2) Why do you think POS will be spent any more than POW coins would be? Cardano whales are more likely to stake their stash in Underground database Vaults and earn from it passively. Bitcoin whales do not earn from Staking. In fact, their percentage ownership in Bitcoin dwindles every 8 minutes. Wheres Charles Hoskinson's percentage will never diminish. The economics of a POS system actually DISCOURAGES spending. That is why early DASH miners wanted a shift to POS, because the rich get richer in POS. The new comers wanted Dash to remain POW.
    I see GRIN being more of a currency than either Bitcoin (With the best shot) as opposed to Cardano (with no shot). It'd deflationary, isnt POS, and has no founder and CEO.
    I would go as far as to say Bitcoin became the success it was just because Satoshi decided to vanish.

  3. I agree, I dumped all my Bitcoin for ADA. If Bitcoin goes up a few hundred, that's a loss compared to a penny rise with ADA. Bigger isn't better. Everyone waiting with their BTC to go up before they buy.. run some math on if ADA goes up too, how much behind you'll be. You should do a spreadsheet video on it, lol

  4. Hey Philpa! Just to confirm.. Shelley is out this next month and roadmap too ?
    Thanks, great work!

  5. Very well explained, great points as to why Bitcoin is the best investment. And I agree it probably won't be used as a currency, just like gold isn't at the moment. Fast, intelligent POS is better suited for currency but nothing will undermine the dominance of BTC as a store of value.

  6. Got to wall mart and no one was on the car park?.
    Dollars bills lying around,?.
    OK. Then

  7. I love ADA but i would say Pundi X fits the profile of a coin which is closed looped and has thousands of POS machines out in circulation. Plenty of utilility and rewards for users

  8. Looking sharp brother. I'm glad you're keeping up with the content on this channel with all your growing obligations!

  9. Xrp fan saying xrp will be a world currency ada fan saying ada will be btc people are saying btc we do not know who is correct

  10. Yes, indeed! Pick the right coins and what large countries will be using these ecosystems? South east Asia and more specifically South Korea and Japan. ADA and XRP are loved there. I think XRP is on track to really start building use case first and Cardano will be not to far behind. So those are my two choices.

  11. Man you are speaking rubbish sorry. I'm a huge Cardano fan but everything you are saying is utter rubbish

  12. His name Philippe not Philpa. Agreed, Cardano will work well as digital currency. ADA is already used in Japan at retail shops, there is the Tangem card that will allow conversion and spending, there are ATMs dedicated to selling ADA, excellent digital wallets and Ledger Nano support, fast transaction times, low transaction fees, low energy use for consensus … Cardano may outgrow BTC.

  13. I haven't checked back in here in a long time, but I love your passion for Cardano, and I love the way you keep stepping up your video presentations, and I suspect that you may one day get a call from them for some sort of media type employment. Here is one thing that occurred to me though… (this may be a non issue, but I wanted to mention it.) ANY project can fail, or possibly not do as well as expected. So I truly hope for your sake that you are heavily vested in coins like BTC and ETH and a couple of other projects "as well as Cardano" because I would hate to see you not win out in the end if a different horse or horses wins the race in a huge way. Just food for thought, and it is no meant to be pointed negatively at Cardano. Cardano is a WONDERFUL project with a fantastic project leader in Charles, and I have strong confidence in both. I will even admit that back in the very early days (when I first entered the crypto space) there was a time that I had 100% of my portfolio in Cardano, instead of 5% as I do now… so I want you to know that I am a true supporter of Cardano. But at the same time… I want you and me and all of us to be PRACTICAL. We need to diversify our portfolios, even if we are poor people, and only have a small amount to invest. The amount is not what is important… it is the distribution of where it is allocated that helps us to fight against risk.

  14. How is hoarding Bitcoin any different than staking Cardano? Yeah Cardano is being used to validate transactions, but it's not being spent. It's not moving anywhere. The velocity of money doesn't increase. I'm not sure I understand the point of your video.

  15. The comments and hope from inexperienced investors here are now making me compare Cardano to Electroneum….. the parallels are there. How unfortunate.

  16. I love cardano, but I'd love it even more if it's on Celsius wallet. Celsius wallet rigs the system.

  17. And you just walked past the bills laying on the ground?! Lmfao all day long….. guess youll never know the value of money, good luck being broke…..

  18. Just curious, but why would we need any other currency than BitCoin? Isn't BitCoin pretty much going to be the standard currency that will eventually be accepted world wide?

  19. You know I love Cardano. I love bitcoin. There are a few issues with this video though.

    1. People will spend ANY crypto when they need to, or when they perceive they have gained enough value they are willing to trade the token for the good or service.
    2. Sure there is lost bitcoin and a lot of users hoarding bitcoin. You dont think that can happen in Cardano also? It can and it will. There is a lot that goes into incentives to spend investments. And anyone can lose keys in any crypto.
    3. You may be right that certain alts could outperform bitcoin. But there is zero guarantee of that. All of this could go to zero. Its unlikely, but its possible. Plus a statement like that is very open. Outperform based on what? The current price of not ADA and BTC vs the price of ADA when BTC hits $100k? Thats not necessarily true, and in most cases alts take huge % dumps when BTC is pumping. ADA will likely not see the huge % gain until after BTC hits the $100k and re-consolidates. Then ADA and alts usually surge.
    4. There is no guarantee that BTC will only keep a store of value status. There are 100 Million satoshis per BTC. That is small enough to transact daily. And the white paper said peer to peer cash. Not digital gold store of value. Sure they have their fair share of problems, and theres a lot of work to be done on that chain to realize that.

    Nonetheless, I enjoy your videos. Im excited for Shelley. I hope more eyeballs come to Cardano. I think we are about to witness something amazing very soon

  20. Cardano will have to work as a stable coin for it to be a standard currency. It's not necessarily being built for that. It would need some mechanism to keep its value stable like Reserve Coin or MakerDAO. I see it more as a financial operating system at the moment.

  21. BTC is BTC! ADA is ADA! They have different objectives! What's the point of comparing them?

  22. The Cardano team should give you a bloody job. You explain things very well. Clear, concise, matter of fact, easily understood, and to the point. You are better at putting things across than even big brained Hoskinson. I think they shouldemploy you inpublic relations, ora jobexplaining all things Cardano on YouTube. I know Hoskinson does his importuned AMA YT videos from time to time, but I mean, seriously, what other PR man have they got that does what you can do on social media?

  23. Interesting experiment I saw done by Chico Crypto . He went on the street and ask folks if they would rather have $5.00 US dollars or $10 Ethereum. Surprisingly half would end up choosing Ethereum. Looks like crypto is catching on.

  24. For all this to happen, you guys need to complete the project first..

    Cant expect anything, if roadmap itself cant be released on time..

  25. Thermodynamics has nothing to do with finance and further your argument is shit because people are only hoarding while they wait for its true value to be realized once they're all lambo rich they'll all be buying lambos your nice jacket does not make you know Jack schitt about this topic

  26. Wao… Ada is another great project I'm holding. So bullish about it in 2 years. However, Another coin that can be of standard is Veil. You can check out the project and do your own research. But I bet you, Veil coin is a potential one.

  27. To make sure ADA gets spend and moved wallet to wallet, there needs to be several smarts contracts for day to day commerce .

  28. If ada can't become a store of value, then it will not be a standard currency. Now we have some other projects with a similar consensus mechanism such as algorand and there will be more and more competitors. Peope will only hold bitcoin for storing value. Just my thought here, no FUD. Only invest what you could afford to lose.

  29. I like cordano as I think I'll 10x my investment in the next bullrun but it's very slow in development and need better PR

  30. If a any currency has a maximum amount of tokens then people will hord and such a currency will be volatile.

  31. I like this guy. I just got involved in the Cardano community and he does a great job of explaining things.

  32. hey philpa we are getting closer to staking : looking for your guide video about running your own pool ^^ Will it be easy to run your own pool or do i need to know(learn) some technical things

  33. Do u brainwashed disciples of The God of Crypto,Charlie, no what it takes to become a currency? This airy fairy token,Hahahaha absolutely no way.

  34. Much difficulty obtaining a wallet and account with exchange. Very arduous process indeed for your average user. Nothing user friendly or convenient at all. Way too cumbersome.

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