Cardano (ADA) co-founder Charles Hoskinson is addressing MicroStrategy CEO Michael Saylor’s opinion that ADA counts as a security but Bitcoin (BTC) doesn’t and instead qualifies as a commodity.
In a new ask-me-anything (AMA) session, Hoskinson argues that Cardano is not only more decentralized than Bitcoin, but it has more real-world utility as BTC’s main use case is speculation.
“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?”
In an interview with Altcoin Daily last week, Saylor said it was “pretty obvious” ADA is a security.
“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.”
Hoskinson says that Saylor and other Bitcoin maximalists remain exclusively defensive of BTC because they have financial interest in it succeeding over other crypto assets.
“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.”
Cardano is changing hands for $0.45 at time of writing, a 4% increase on the day.
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