Cardano is A Significantly Better Crypto; Makes No Sense for BTC to Rule the Roost: ADA Founder
- Hoping ADA to jump into top three cryptos with the launch of Shelley is setting yourself up for failure – said Charles Hoskinson
- Bitcoin will maintain the store of value status & be a multi-billion dollar ecosystem, just like gold
- Central banks’ stimulus for too long can force a banking crisis which will be the time for crypto to shine and “we're building for that”
Proof-of-stake (PoS) blockchain Cardano (ADA) Founder Charles Hoskinson conducted his latest AMA last week where he shared the delay of its Shelley era has been due to several factors. As Hoskinson explained,
“Byron reboot and the Shelley Haskell testnet – once those two events happen then we are a hundred percent confident.”
Recently, there have been reports that the Shelley update has been postponed because of the coronavirus (Covid-19) which Hoskinson was quick to deny, calling it “fake news.”
The most significant release, Byron Reboot has been said to be “100% re-written code, security audited, built with formal methods and it's 100% built in-house.” This critical milestone will enable the migration from the Rust programming to Haskell.
Hoskinson isn’t concerned about the delays or the time taken to release Shelley on the mainnet. But he did share that even such a big release won't affect the price of ADA.
“We are in a market condition right now where if you launch Shelley it’s actually not going to significantly impact the price of ADA. So if you are hoping for Cardano to somehow become top three cryptocurrencies the minute Shelley comes out, I think you are setting yourself up for unrealistic expectations and failure.”
And if you wanna know why the cryptocurrency price is currently so low — $0.024, down 63% in the past month and 98% from its ATH — that’s because
“everything else is low and when everything else goes back up it goes back up. Real decoupling takes years.”
During his livestream, Hoskinson also talked about working on implementing commercial infrastructure, which can be expected in the coming months. According to Hoskinson, it is what Cardano needs “to be competitive against other cryptocurrencies.”
ADA “significantly better crypto” than Bitcoin
The CEO of IOHK, the company behind the cryptocurrency, also believes ADA will surpass Bitcoin, the world’s leading cryptocurrency.
This is because “we have more utility and we're just a significantly better cryptocurrency.” According to him, Cardano is the first to offer the same security principles as of Bitcoin but with none of the downsides which “makes no sense for Bitcoin to rule the roost.”
Cardano, he said, is the first one to “come at it with the same overall technological goals of Bitcoin but do so in a way that vastly surpasses it,” in terms of extended UTXO, matched all of its security properties, and has smart contracts.
He further talked about how Bitcoin mining spends more power than the country of Switzerland while Cardano only spends 10 kilowatts. Hoskinson said,
“We have so much utility and we can complete the entire enhanced transactions so the asset the identity component; the metadata component, the contractual component as well as the regulatory component, given that we can do all those things and Bitcoin cannot, there's just no reason to use Bitcoin as a medium of exchange or as a Dapp platform.”
The only good thing bitcoin can be, according to him, is a good store value and,
“I believe firmly it will maintain that status and it will still be a multi-billion dollar ecosystem. But it's just like gold and it's just one of many options. It has its place in purpose but it doesn't do everything.”
Central bank stimulus to force a banking crisis
During his AMA, the co-founder of Ethereum also touched upon the central banks’ stimulus and how too much of it will lead to a crisis.
“We can't have trillion-dollar quantitative easing and stimulus packages and zero percent or negative percent interest rates. You just can't do that. If you do it too long, the system will start crunching and then those of if they're too heavy will force a banking crisis.”
But that would mean, cryptos will be at the center stage and that’s what Cardano is preparing and building for, said Hoskinson.
“That's going to be the time for crypto to shine, can't tell you when it's gonna happen but I tell you it will happen and when it does that's our time and we're building for that.”
The ongoing environment he said is a very risky time, where a bank run can take Bitcoin to $100k or collapse it to a thousand dollars.