In recent months, the automaker Tesla (or rather Elon Musk) has been in the news! After announcing to accept Bitcoin as a means of payment, the manufacturer has taken a step aside. The reason given is related to the environmental cost of mining Bitcoin. In this case, for Charles Hoskinson, Tesla should stop wondering about Bitcoin and adopt Cardano.
Tesla should consider adopting Cardano or Ethereum
Charles Hoskinson, creator of Cardano (ADA), gave a long interview to Lex Fridman. Available on Youtube, this interview covers many topics. In particular, Charles Hoskinson was asked about Tesla and Elon Musk’s position on Bitcoin.
“If they really care about alternative energy, sustainability, reducing carbon emissions and being carbon neutral, you can’t be in a system where there’s no built-in mechanism to limit energy consumption. “Charles Hoskinson, creator of the Cardano
For him, things are clear. If Tesla is really serious about environmental considerations, then the automaker has no choice but to turn to cryptos that operate on a Proof-Of-Stake (POS) model like Cardano of course or even Ethereum (in the process of adopting POS).
As a reminder, Bitcoin, on the other hand, works on a Proof-Of-Work (POW) model which is very energy intensive. In concrete terms, the mining of a crypto like Bitcoin pushes miners to constantly increase their computing capacity.
In addition to the environmental aspect, Cardano is an ideal network to build an infrastructure related to the autonomous car based on the 5G of tomorrow.
Cardano VS Ethereum
Of course, Charles Hoskinson has put Ethereum and Cardano on the same level in terms of their environmental “cost”. However, let’s not be mistaken! As the creator of the ADA, he is not stingy with his arguments when it comes to showing how much better Cardano is than Ethereum!
In particular, Charles Hoskinson likes to point out three major advantages of Cardano over Ethereum.
- First of all, Cardano can handle smart contracts while integrating an automated regulation.
- Moreover, for him, Ethereum has so far only cooperated very little with developing countries to try to bring solutions to their population. Cardano, for his part, has already worked with the authorities of Ethiopia, Tanzania or Georgia.
- Finally, according to him, the structure of Ethereum is far too complicated and Ethereum is on its way to “commit suicide” with the arrival of Ethereum 2.0.
At the time of writing, Cardano is in 5th place among global cryptos in terms of capitalization. For comparison, with nearly $40 billion in capitalization, Cardano is doing better than the crypto exchange Coinbase.