Charles Hoskinson, co-founder of Cardano, disputes Michael Saylor, CEO of MicroStrategy, who claims that while ADA qualifies as a security, Bitcoin does not and must be classified as a commodity.
Hoskinson makes the case that Cardano is more useful in the real world than Bitcoin because Bitcoin’s primary use case is speculation in an AMA session. Cardano is also more decentralized than Bitcoin, according to Hoskinson.
“Nobody controls [ADA]. It’s completely decentralized, far more than Bitcoin. It has more use and utility. People buy the token not to speculate, which is the only thing they can do with Bitcoin. They buy the token to use it for stuff, medical records and whatever else they’re doing, because it has real-life utility. So that’s a security, but the [crypto] that the only thing you can do [with it] is speculate, is not?”
Saylor stated last week that it was “pretty obvious” that ADA is a security in an interview with Altcoin Daily.
“To be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, it’s pretty obvious it’s a security. It checks all the boxes, so I don’t know how you actually get around intellectually to convincing yourself that it’s anything other than a security.”
Saylor and other Bitcoin maximalists continue to defend BTC only because they have a financial stake in it outperforming other crypto currencies according to Hoskinson.
“It’s just one of those cases where [Saylor is] digging deep, fully digged in with Bitcoin, so it’s got to work, because if it doesn’t work the way he hopes, he goes bankrupt. So I don’t give much attention to it, and I don’t think it’s a productive conversation at all…
Saying [that] at any given time, [in] a proof-of-stake system, somebody can just arbitrarily take all your money and shut it down, it’s not honest. It’s just libel.
It’s not true. Protocols don’t do that. They feel they have no burden of proof or evidence of the statements they’ve made, and they say the only thing that matters is their thing, even though their thing doesn’t do anything. It just stores value.”
The Cardano network token ADA is trading at $0.45, a 4 percent rise from the past day at the time of writing. The coin is the 8th largest cryptocurrency by market cap with a market cap of $15.23 billion.