The reason I’m only in Bitcoin and Cardano

This might be a long post. But this has to be said.

Risk management is about more than price. It’s also about security.

Blockchain technology was supposed to be about decentralization and security. After smart contracts as a concept was conceived it was also apparently that speed had to be addressed. And that’s what the trilemma is all about. But everybody seems to have forgotten.

How do you balance decentralization, security and speed? All at the same time?

Let’s face it, none of us notice decentralization and security. Until it’s too late.. It’s all about them gainz. And last cycle we had all the shit like Luna and FTX, because the chase for quick gains. Who cares about security when you can have quick cash grab scams?

This is the reason Cardano started doing all that peer reviewed research which has become a meme at this point.

But ask yourselves, why are they so adamant on doing it that way? The reason is quite simple, it’s a strategic decision.

The only real way to even begin to solve the trilemma is to do it in the proper order. First you need to sort out decentralization and the security model. But that’s not very sexy and doesn’t attract VCs and the average crypto gambler who will all flock to the quick gains and fake blockchains.

But it can be compared to building a house. If you don’t start with the foundation it’s all gonna come crumbling down. Even tho it might not seem so important, it’s what everything relies on.

A weak foundation generates tech debt further down the line. This is where Ethereum is at this point.

So why do I only hold Bitcoin and ADA? Because with Bitcoin I know my assets are safe. Same with Cardano, I know it’s safe and I won’t get hacked.

As for Cardano, I know the gains are higher than Bitcoin. And I’d like to dabble with defi without choking up before I make any transaction.

Because I know the outcome of my transaction before I send it. I don’t care if it takes a few minutes. If I did I’d use Solana, which is fast and efficient. But it’s not very secure so I wouldn’t use Solana as a store of value. I’d convert it to Bitcoin or ada.

So with Cardano I know it’s secure, decentralized and predictable. The fees are low and I don’t risk paying huge amounts for a failed transaction. Who in the real world would even accept that?

I can also stake my ADA without losing custody of my coins. It’s all liquid and I’m always in control.

TLDR; Cardano is the safest, most predictable and stable blockchain there is. And I can stake my coins without losing custody of them. It has low fees and I know the outcome of my transaction before it’s sent.

Sure there might be other ways of getting more gains, but this is about risk management. I’d rather have stable gains than risking losing it all.

That’s it, super basic core values that I will not allow to be comprised.