Charles Hoskinson, the founder Proof-of-stake (PoS) blockchain Cardano (ADA) started his latest AMA last week by answering why “Cardano community gets so much sh—t?”
According to him, it is “because everybody’s scared of us, no one can match us, no one can catch us. Cardano is gonna win and even if we don’t it’s gonna be one hell of a fight.”
Recently, there have been reports doing rounds that Cardano’s major Shelley update has been postponed because of the global pandemic coronavirus (Covid-19). Hoskinson rebuffed them with “fake news.” and clarified, “Byron reboot and the Shelley Haskell testnet – once those two events happen then we are a hundred percent confident.”
An important release, Byron Reboot is “100% re-written code, security audited, built with formal methods and it’s 100% built in-house,” previously shared by Hoskinson.
While the Cardano team is focused on development, the price of ADA has fallen 63% in the past month and is currently trading at $0.0243. The 15th largest cryptocurrency by market cap is down 98% from its ATH.
As for why the price is low, it’s because “everything else is low and when everything else goes back up it goes back up. Real decoupling takes years.”
And if you think after the Shelley launch, the price of ADA will simply skyrocket, Hoskinson is ready with a pin to deflate those dream bubbles as he said, “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.”
The team’s whole focus is completely on the development of the cryptocurrency which the CEO of IOHK, the company behind Cardano believes, will surpass Bitcoin.
Hoskinson explained that it is because Cardano has “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.”
The cryptocurrency has been the first one with the same technological goals that of Bitcoin but surpasses it as Cardano matches all of Bitcoin’s security properties and has smart contracts while having extended UTXO.
Taking a stab at the energy consumption of the Bitcoin network, he said while the world’s leading cryptocurrency spends more power than a country of Switzerland, Cardano only consumes 10 kilowatts.
“There’s just no reason to use Bitcoin as a medium of exchange or as a Dapp (decentralization application) platform,” the only good thing bitcoin can be is a good store value and Hoskinson believes it firmly that Bitcoin will maintain that status and be a “multi-billion dollar ecosystem.” However, it is one of many options as there’s gold.
The co-founder of Ethereum also talked about the ongoing sell-off in the market for which the Federal Reserve has announced a QE program and slashed interest rates to zero. Too much of such a program and for too long will lead to a crisis, he said.
“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’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.”