Cardano founder Charles Hoskinson is hoping for Tesla to take side with Cardano and ditch Bitcoin altogether, as he discovers flaws with the Bitcoin network.
Tesla has some of the community in a very confused state. The recent removal of Bitcoin payments by Tesla was a very controversial move. Tesla said that Bitcoin isn’t energy efficient but still keeps some of its Bitcoin holdings. Later on, Tesla CEO Elon Musk announced that Tesla might reconsider Bitcoin payments only if Bitcoin can reach a sustainability percentage of more than fifty percent.
The confusing thing is that if Elon and Tesla really care about the environment, then why did they consider Bitcoin before, because as well known, Bitcoin has a very bad reputation when it comes to renewable energy consumption, as its current system has very minimal regulations regarding the use of high energy consumption proof-of-work system.
As Tesla looks for alternative currencies, speculations are that it might get into DOGE, as Elon Musk is showing a lot of support for the meme currency, contributing to the increase in its price to the point where his tweets change the price of DOGECOIN. It is still very much unclear if Elon is actually supporting the currency or just hyping it up for publicity.
Tesla and Problems with Bitcoin
CEO of Cardano, Charles Hoskinson, said that if Tesla wants to keep its reputation for respecting the environment, it has to look for other cryptocurrencies to deal in. Charles agrees that Ethereum and Cardano both are showing better numbers than Bitcoin and have much better networks and ecosystems to handle high energy sustainability.
Bitcoin systems are weak when it comes to scaling. Meanwhile, Ethereum and Cardano are actively supporting scaling techniques. Having a proof-of-work system, Bitcoin is crippled by its issues with energy consumption, for which the expenses either have to be handled by developers or system users.
Charles gave importance to 3 factors that make up a good public trading system. These factors are to achieve the maximum amount of Utility, Sustainability, and overall value. However, to go towards the maximization route, these factors are thereby replaced by having good transaction volumes, from which the actual wealth will be generated. Charles gave an example on Coinbase, which had that maximization mentality from the start, but then had to focus on being diverse and expanding their reach.