Cardano is more useful than Bitcoin, BTC is just for speculation, says Hoskinson to Saylor

Michael Saylor says the blockchains of bitcoin and Cardano are completely different. The MicroStrategy CEO and convinced bitcoin maximalist even says that ADA, the crypto of Cardano, is a security. Charles Hoskinson of Cardano obviously disagree with this. The latter says that bitcoin is only used for speculation.

Regulators must decide on Cardano

Last week, Saylor was a guest on Youtube channel Altcoin Daily. He discussed what he believes are the main differences between Cardano and bitcoin networks.

“My view is that bitcoin is a digital commodity. I think all proof-of-stake networks are security, and they are all very risky. The regulators will have to decide whether or not to allow them to continue or not.”

In his explanation, he talks about securities. In Dutch, these are securities that represent a financial value like shares, bonds, or options. Saylor then explains why he thinks proof-of-stakes projects like Cardano are securities and why bitcoin is a commodity (underlying value).

To make it easy: a stock represents a piece of value of a company. ADA can be compared to that share, while bitcoin is the company on which the share’s value is based.

How can Cardano be anything other than a security?

“If a token is not the underlying asset, then it is a debt. And the question is, when can you call a digital network a commodity network?”

To be a commodity network, there has to be no issuer, no ICO, no central organisation, and if you study the history of Cardano, it is pretty clear that it is a security. It meets all my aforementioned tick boxes, so I don’t know how you can intellectually convince yourself that it’s anything other than a security.”
Legislation more important than technology

Saylor warns that selling unregistered securities carries potential legal consequences, regardless of the token’s technical background.

“Technology, however, will not save you. Ultimately, if you sell a security to the general public without a disclosure statement, the fact that it is technically advanced will not save you from securities liability…”

Cardano makes more sense than Bitcoin

Charles Hoskinson, the founder of Cardano, felt compelled to respond to Saylor’s words. During an ask-me-anything, Hoskinson argued that Cardano is not only more decentralised than bitcoin but also has a more practical use. Indeed, he says BTC’s main use case is speculation.

“Nobody controls cardano. It is completely decentralised, much more so than bitcoin. It has more utility. People don’t buy the token to speculate, that’s all they can do with bitcoin. They buy ADA to use it for stuff, medical records, and whatever else they do because it’s really useful.”

Bitcoin maximalists defend own investment

Hoskinson says Saylor and other bitcoin maximalists are defending bitcoin because they have a financial interest in BTC being more successful than other cryptocurrencies.

“It’s just one of those cases where Saylor is digging in and has completely dug in with bitcoin, so it has to work because if it doesn’t work the way he hopes, he’s going to go out of business. So I don’t pay much attention to it, nor do I think it’s a productive conversation.”

Bitcoin does nothing but store value

He also disagrees with the criticism of proof-of-stake. “Saying that at any given moment someone can just take your money in a proof-of-stake system, that’s not fair. It’s just libel.”

According to Hoskinson, proof-of-stake is simply a protocol. “Critics have no burden of proof or evidence of the statements they’ve made, and they say the only thing that matters is their proof-of-work bitcoin, even though bitcoin doesn’t do anything. It just stores value.”