Will Tesla accept ADA?

If Charles Hoskinson, founder of Cardano (ADA), has his way, Tesla should accept ADA instead of Bitcoin (BTC) as a cryptocurrency. Hoskinson reasoned why this is so, and not just because of energy consumption.

Hoskinson sees Cardano as one of the most environmentally friendly digital assets. Hence his advice that Tesla should simply accept ADA instead of bitcoin. Tesla had begun accepting bitcoin as payment in March. In May, CEO Elon Musk revised this decision. Bitcoin is too energy-intensive to produce, he said.

Bitcoins are mined using the Proof of Work algorithm. Complex tasks are solved, and miners receive bitcoins as a reward for solving the tasks. This process is accompanied by high power consumption. A fact that Tesla cannot tolerate if it wants to continue to be considered a pioneer in the world of green mobility. Cardano, on the other hand, works with the much more environmentally friendly Proof of Stake process.

However, it is not impossible that bitcoin will one day be accepted as a means of payment again. Elon Musk recently stated that Tesla would accept Bitcoin again if at least 50 percent of Bitcoins were to be mined through renewable energy.

Hoskinson, founder of Cardano, on the other hand, has a different idea. Bitcoin, he says, is not the right fit for a company like Tesla.

“If they really care about alternative energy solutions, sustainability, carbon reduction and carbon neutrality, you can’t be in a system where there’s no built-in mechanism to limit energy use.”

Bitcoin can be mined with renewable energy, but the world’s largest cryptocurrency does not have a built-in algorithm that minimizes energy consumption in any way.

However, Bitcoin also lacks many other qualities besides being environmentally friendly, Hoskinson said. Namely, Bitcoin is not programmable enough to create unique things, he said.

Other cryptocurrencies that can do that, however, don’t fare well with Hoskinson either. In the past, for example, he repeatedly made negative comments about the second-largest cryptocurrency, Ethereum. Both cryptocurrencies are in direct competition with each other. Hoskinson was also involved in the creation of Ethereum at the time.

Ethereum is overvalued, Hoskinson said. Unlike ADA, Ethereum has never worked with governments of developing countries, he said. Moreover, he said, Ethereum is limited to working with smart contracts, while ADA is not.

Quite grimly, Hoskinson sees Ethereum’s future.

“First of all, Ethereum is killing itself. They are in the process of replacing Ethereum with Ethereum 2.0. In the end, ETH 2.0 will kill ETH 1.0.”

With Ethereum 2.0, Ethereum is also looking to switch to the proof of stake process, among other things. According to Hoskinson, however, the entire Ethereum structure is too opaque. Therefore, Ethereum will destroy itself in this case.

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Source: https://l-wiesflecker.medium.com/will-tesla-accept-ada-b3ba6c06c649?source=rss——-8—————–cryptocurrency