A recent episode of Crypto Crossfire hosted by Ben Armstrong (Bitboy) and featuring JChains, Ajwritescrypto, and Jason Appleton (Crypto Crow) dived deep into the threats facing Cardano (ADA). They explored the two main perspectives: the challenges posed by Central Bank Digital Currencies (CBDCs) and the competition from other layer-1 blockchain projects.
CBDCs or Other layer-1 Blockchains
In the opening argument, Aj acknowledged Cardano’s extensive community and the project’s passionate supporters, making it difficult to criticize. He stated that he’s a member of Cardano’s passionate community and he had met with Charles Hoskinson and talked about the project. He said, “It’s hard to hate on Cardano.”
However, Aj argued that Cardano’s primary threat is other layer-1 blockchains. Comparing the crypto world to other companies, Aj likened Ethereum to Nike, the largest shoe company in the world. He highlighted that Cardano is ranked 9th with an $8.5 billion market cap while Ethereum, its main competitor, is ranked 2nd with over $188 billion. This shows that Cardano has a long way to go.
— Ben Armstrong (@BenArmstrongsX) October 18, 2023
Ben Armstrong’s Counterpoint
Armstrong offered a different viewpoint, stating that Solana was the bigger threat among the layer-2 blockchains. However, he argues that there’s a threat outside the blockchain ecosystem. He cited the founder of Cardano, Charles Hoskinson, who expressed indifference towards other blockchain projects like Algorand, Ethereum, XRP, and Solana.
According to Armstrong, Hoskinson is more concerned about the threats posed by tech giants like Google. In addition to this, Armstrong argued that CBDCs are not only a threat to Cardano but also to the entire cryptocurrency ecosystem due to their impact on individual freedoms and privacy.
He states that he wants to completely remove himself from the banking system so he’ll never have to touch CBDCs when they start being used.
CBDCs Not a Direct Threat?
Aj responded to Armstrong’s concerns about CBDCs by highlighting that they do not present a specific threat to Cardano, especially since they are not live yet. Although Armstrong described them as “inevitable,” Aj emphasized the lack of empirical data to suggest how CBDCs might impact cryptocurrencies and whether they will replace stablecoins or coexist with them.
Aj maintained that Ethereum remains the most substantial threat to Cardano due to its valuation and adoption lead, stating that for Cardano to surpass Ethereum in market cap, it would need to grow by 21x.
The argument continues with each person going into detail and presenting strong points backing their arguments. However, ChatGPT recently picked Cardano as one of its top three cryptocurrencies to buy and hold. Although the competition is steep, Cardano could surprise its detractors. Also, be reminded to do your own research (DYOR) before investing in any crypto asset
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
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