In a recent episode of Crypto Crossfire on the crypto influencer channel Ben Armstrong, the show’s panel delved into the critical question of what poses a more significant threat to Cardano (ADA).
The panel included Ben Armstrong himself, JChains, and AJ, alongside an expert witness, Jason Appleton, aka Crypto Crow. The expert panelists explored the threats to the Cardano ecosystem from the two perspectives.
Specifically, they elaborated on whether the threat is on the side of Central Bank Digital Currencies (CBDCs) or other competing crypto projects.
— Ben Armstrong (@BenArmstrongsX) October 18, 2023
Threat to Cardano CBDC or other Layer Ones
Opening the discussion, JChains emphasized the essence of examining potential risks to Cardano amid the coming bull market. He presented the debate’s structure, allowing AJ to present the opening argument.
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AJ first expressed his admiration for the Cardano project and its passionate community. He noted the difficulty in scrutinizing the project while being a passionate member.
“It’s a big project with a lot of really passionate community. It’s hard to hate on Cardano,” AJ remarked.
Meanwhile, AJ’s stance was that the primary threat to Cardano comes from other layer-one blockchain projects. He specifically named Ethereum as a major contender. He likened the position of Ethereum in the blockchain sphere to “Nike,” the largest supplier of athletic equipment.
AJ made the similitude given Ethereum’s valuation exceeding $188 billion. In contrast, he pointed out that Cardano only boasts an $8.5 billion market cap, ranking at nine on the market.
Moreover, AJ emphasized Ethereum’s prominence over Cardano by arguing that ETH’s valuation exceeded the cumulative of the first 82 cryptocurrencies, excluding stablecoin.
Ben Armstrong Disagrees
However, Armstrong expressed a different perspective to AJ’s sentiment of Ethereum being a threat to Cardano. He humorously stated that Solana posed a more significant threat to Cardano.
Meanwhile, Armstrong argued that Cardano’s main threat transcends the Proof of Stake (POS) blockchain space. He cited that Charles Hoskinson, the founder of Cardano, had stated he is unbothered about other blockchain projects, including Ethereum, XRP, and Solana.
Armstrong highlighted that Hoskinson is more concerned about the threats from big tech corporations like Google. In parallel, Armstrong argued about the dangers of CBDC. He not only viewed them as the most substantial threat to Cardano but also as a potential menace to the entire cryptocurrency ecosystem.
Ben expressed deep concerns about the impact of CBDCs on individual freedoms and privacy. Drawing from personal experience, Armstrong emphasized the negative impact of financial control systems like the CBDCs.
CBDCs Are Not a Threat to Cardano
Meanwhile, AJ responded to Ben Armstrong’s concerns regarding CBDCs. AJ pointed out that CBDCs posed no specific threat to Cardano. Besides, AJ stressed the lack of empirical data to suggest how CBDCs threaten cryptocurrencies since they are yet to be live.
He added that it is unclear whether CBDCs would replace stablecoins entirely or coexist with them.
Furthermore, AJ reinforced his argument that Ethereum was the most substantial threat to Cardano due to its significant lead in valuation and adoption. He illustrated that for Cardano to surpass Ethereum in market cap, it would need to grow by 2,100%.
Other than the above arguments, The legal actions initiated by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase are poised to cast a shadow over 19 tokens implicated in the lawsuits. Among them is Cardano (ADA), and the repercussions may extend to a potential migration of these projects to alternative global jurisdictions leaving the US.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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