This raises the price of Cardano’s ADA from $1.8944 to $2.3607 within 24 hours. This accounts for a 24.6% rise. This also led to the wiping-off of more than a quarter of a trillion dollars from the global cryptocurrency market.
You might be wondering why there is such a huge rise and what will happen once Elon Musk adopted ADA?
Well, let us discuss in detail to find the answer.
What is the reason behind this massive shift of thoughts?
A few days earlier Elon Musk was positive about Bitcoin but a recent tweet changed things. The tweet says that Tesla would stop accepting Bitcoin for its electric cars. It is due to the concern over the impact of the network’s operation on the environment. He further says that he is in search of other digital currencies that use less than 1% of the energy that bitcoin does.
Another reason for this is the underlying technology of ADA cryptocurrency. This technology relies on Proof-of-Stake and not on Proof-of-Work.
What does it mean?
It means it does not depend upon electricity-guzzling computers for processing transactions and generating new units of ADA. This is the reason why Cardano describes itself as the most environmentally sustainable cryptocurrency. And why not so when its Proof-of-Stock blockchain protocol is there to bring revolution. It values the percentage that a minor holds rather than the processing power they possess.
If we see on a theoretical basis, the Proof-of-Stake system could achieve more than 4 million times the energy efficiency of a Proof-of-Work system. The Proof-of-Work system is the same system that Bitcoin uses.
Moreover, Cardano recently became a fully decentralized community-run network. This means the parent company doesn’t have control over its blockchain. This makes it an attractive proposition for investors. This is going to help Cardano a lot to position itself and challenge major rivals in the world of crypto.
What will happen once Elon Musk adopts ADA?
Well, there is no doubt that ADA is going to break records in the upcoming year. It can be simply understood by the fact that Cardano’s potential was stacked up against technology giants like Amazon, Facebook, and Netflix. In addition to this, Elon Musk has fueled this idea. So the chances are high that Cardano could become a global financial computer and have a similar capitalization as the technological giants hold.
You can imagine the growth from a reply to Elon Musk’s tweet by Charles Hoskinson (founder of Cardano). The tweet says “Are we finally going to have the Cardano conversation? Come to my farm...Got sweet tea and minidonkeys.”
Hoskinson further claimed that Cardano uses just 6 gigawatt-hours of energy annually. He further went on that it is not even 0.01% of the 115.85 terawatt-hours bitcoin is estimated to use.
This is a further confirmation of what Charles Hoskinson is looking for and what Elon Musk holds in mind. And when technology giants like Elon Musk hold these thoughts, it doesn’t take time to manifest. People from all around the world started looking with a positive hope in ADA. It is the power of a tweet that is going to raise the value of ADA in the upcoming months and years.
Apart from this, if we go with Simon Peter (cryptocurrency expert) he said clued-in investors are looking for alternatives to Bitcoin that allow them to get in on the ground floor of the upcoming big boom. He further said that investors are looking for the next bitcoin. They are willing to invest in cheaper tokens like Cardano’s ADA, IOTA, TRON, etc.
This means the chances are high these investments will be in Cardano’s ADA especially when Elon Musk and other such richest persons from around the world are willing to invest in ADA.
Moreover, Elon Musk has already shown his preference for other cryptocurrencies in the past. This can be evident from the acceptance of dogecoin payments at SpaceX. So now the question is whether the potential promised by less known ADA will be on the same scale or not. Whatever it is, but the chances of breaking records by ADA are higher.
Cryptocurrencies are known for their high volatility. Even a single post on social media is capable enough to bring the boom in the world of crypto. But what will be the scenario when this post or tweet is from one of the renowned personalities? It is obvious that the value of the various cryptocurrencies will rise overnight and for some, it will fall. But things become entirely different when the action is taken the same. So if Elon Musk adopts ADA or any other cryptocurrency the possibility of rising in value is much higher.