Bitcoin vs. Cardano (Investor’s Guide October 2024)

Which cryptocurrency should I choose? 

The choice between Bitcoin and Cardano depends on your unique investing goals. 

Why choose Bitcoin: Bitcoin is the world’s most popular cryptocurrency. Often referred to as ‘digital gold’, Bitcoin is known for its strong community, limited supply, and robust security. It’s a great option for users looking for a long-term store of value and a hedge against inflation. 

Why choose Cardano: Cardano offers an energy-efficient blockchain with a focus on decentralized applications. It's a popular choice for those interested in the potential of decentralized finance (DeFi) and NFTs. 

‍What is Bitcoin?

Bitcoin, launched in 2009 by the pseudonymous creator Satoshi Nakamoto, is the most popular and valuable cryptocurrency in the world. 

Bitcoin is often referred to as ‘digital gold’ due to its capped supply of 21 million units, which makes it an attractive store of value and hedge against inflation.

Today, Bitcoin has a total market capitalization of more than $1 trillion. 

While Bitcoin has become a popular investment vehicle, it was not designed to support newer innovations in the blockchain world — such as NFTs and decentralized finance (DeFi). 

What is Cardano?

Cardano is a decentralized blockchain launched in 2017. Cardano was founded by Charles Hoskinson, who previously co-founded Ethereum. 

While ADA (Cardano’s native cryptocurrency) is one of the largest cryptocurrencies in the world, its value is still significantly less than that of BTC. At the time of writing, Cardano’s current value is just above $12 billion. 

What makes Cardano different from Bitcoin? 

While Bitcoin was primarily designed to be a store of value, Cardano aims to provide a platform for decentralized applications (dApps) and smart contracts — enabling DeFi protocols and NFTs! 

Meanwhile, Bitcoin operates on Proof of Work (PoW) consensus mechanism, which has been criticized for its high energy usage. Cardano operates on a more energy-efficient Proof of Stake (PoS) system called Ouroboros. 

What makes Cardano different from other smart contract blockchains? 

Cardano faces competition from other blockchains designed for smart contracts — like Ethereum and Solana. 

Unlike other smart contract blockchains, Cardano takes a scientific approach to development. All proposals are examined and validated in a peer-reviewed research process before they are approved. 

In addition, Cardano claims to have better architecture than other blockchains — enabling fast transactions by having different layers for settlement and computation. 

Despite its advantages, Cardano has lagged behind Ethereum and Solana when it comes to usage and price growth. 

Bitcoin vs. Cardano: Price History

Winner: Bitcoin

While Bitcoin has seen high volatility through its history, long-term investors have historically been rewarded with high returns. 

Cardano has not yet seen the same type of price growth. ADA’s price has only risen slightly from 2023 to 2024, despite other cryptocurrencies seeing much higher price growth during this same period. 

Bitcoin vs. Cardano: Use and Purpose 

Winner: Tie 

It’s important to remember that BTC and ADA were designed for different purposes. 

Bitcoin: Bitcoin was created to be a decentralized store of value and medium of exchange. 

Cardano: Cardano was created to help power decentralized apps — including DeFi  protocols and NFTs. 

Bitcoin vs. Cardano: Competition 

Winner: Bitcoin 

While Bitcoin faces no serious competition, Cardano is one of many blockchains that offer smart contracts and decentralized apps. 

Bitcoin: Bitcoin is the #1 cryptocurrency in the world, and is the undisputed leader when it comes to digital assets offering a long-term store of value.  

Cardano: Cardano faces fierce competition from more popular smart contract blockchains like Ethereum and Solana. 

Bitcoin vs. Cardano: Consensus Mechanism

Winner: Cardano

While Proof of Work and Proof of Stake have different advantages and disadvantages, we gave the edge to Cardano — which offers faster speeds and more energy efficient transactions. 

Bitcoin: Bitcoin uses a Proof of Work (PoW) consensus mechanism, which is secure but energy-intensive. PoW requires miners to solve complex math problems to validate transactions on the network and earn rewards. Currently, PoW allows Bitcoin to manage around 7 transactions per second. 

Cardano: Cardano's Proof of Stake (PoS) mechanism, Ouroboros, is considered energy-efficient and sustainable. Ouroboros allows Cardano to manage around 250 transactions per second. 

Bitcoin vs. Cardano: Community

Winner: Bitcoin

Bitcoin has a large, loyal, and global community. 

Bitcoin: As the world’s most popular cryptocurrency, Bitcoin has a large and active global community. 

Cardano: While Cardano has a growing community and an active discussion forum, its community is not as large as Bitcoin’s. 

Bitcoin vs. Cardano: Institutional Acceptance

Winner: Bitcoin 

Bitcoin ETFs are available in the US and many other countries! 

Currently, Cardano ETFs are not available in most countries — showing a lower level of institutional acceptance. 

Bitcoin: Bitcoin ETFs have been available in the US since 2024. 

Cardano: Cardano ETFs are currently not available in the US. 

Bitcoin vs. Cardano: Supply

Winner: Tie 

Both Bitcoin and Cardano have capped supply — which mean both cryptocurrencies benefit from scarcity! 

Bitcoin: Bitcoin's supply is capped at 21 million units.

Cardano: Cardano’s supply is capped at 45 billion units. 

Bitcoin vs. Cardano: Security

Winner: Tie 

Both Cardano and Bitcoin are considered highly secure. Neither blockchain has faced a major security issue in the past. 

How to Buy Bitcoin and Cardano

Both Bitcoin and Cardano are available on popular cryptocurrency exchanges like Coinbase and Gemini. 

Here’s how you can get started investing in BTC and/or ADA:

1. Create an Account: Sign up for an account on a cryptocurrency exchange like Coinbase or Gemini. You’ll need to provide Know Your Customer information — like your name, address, and a picture of a government ID. While signing up takes a few minutes, it may take 1-2 days for your identity to get verified. 
2. Add a Payment Method: Once your identity has been verified, you can get started trading. Link your bank account or another payment method. 
3. Select the Cryptocurrency: Choose Bitcoin (BTC) or Cardano (ADA) from the list of available assets. Then, click ‘Buy’. 
4. Make Your Purchase: Enter the amount of the cryptocurrency you wish to purchase and confirm the transaction. Make sure that you account for relevant fees. 

Conclusion

Both Bitcoin and Cardano offer unique benefits and cater to different types of investors. Your choice should depend on your investment goals, risk tolerance, and your plans for using the cryptocurrency.