The race is on for the crypto that can dethrone the fossil fuel leaders.
ADA has a lot of buzz for sure. But lets dive in and look at both ADA and ALGO:
They all want your ADA to use in this formula:
To make the numbers like:
Or, notice how big the Pool Operator’s numbers can get:
So if you shop around, you can find a pool that might pay you around 6% interest but FYI you have to take that one extra step after buying ADA to pick a pool (i.e. delegate your ada) and earn the interest. Otherwise your ADA might just be sitting in a wallet un-delegated! You’ll still earn the “buy low, sell high” gains when/if you sell your ADA, but what a waste! You could do that AND earn about 6%.
ALGO doesn’t make you do this extra step. ALGO gives you 6% by default and your ALGO comes pre-delegated already to some pool you didn’t have to pick.
So why not run your own ADA Pool and get way more than 6%?
Great idea! In 2019 or 2020 but to run your own pool today, well, you need around 300k ADA. And this is a great jumping off point to talk about how differently ADA and ALGO solved this problem of proof of stake.
ADA says, go ahead public, run a node please, you are helping the entire system with capacity and you will be rewarded if other people agree and delegate their ADA to your pool.
ALGO says, thanks for your interest in running a pool, we have enough right now. Furthermore they don’t want their pools trying to compete with each other. You get more than the 6% a normal ALGO holder gets, but it isn’t huge numbers like some ADA pool operators get.
But there’s one more reason to pick ALGO: it’s market cap is 4.1 billion right now vs. ADA’s 58.3 billion. I’m bullish on both, I have 2023 price target for ADA at $78 USD and ALGO $400.
So in summary, both are green and have huge momentum behind them.
ADA requires an extra step to earn interest.
ALGO market cap much less than ADA as of May 2021.
Possible to make huge gains with running an ADA Pool, but you need a lot of ADA.