Elon Musk has removed Bitcoin (BTC), the largest cryptocurrency by market cap, as a Tesla payment option due to the issue related to energy consumption. Does it mean there is a chance for Cardano (ADA) that is 1.6 million more energy-efficient than Bitcoin?
There have been debates over the high consumption of energy by Bitcoin’s proof-of-work (PoW) consensus algorithm. All these debates over the years have amounted to nothing until 13th May when billionaire CEO of Tesla, Elon Musk, said enough is enough, Bitcoin miners have been using fossil fuels for transactions, which is not good for the environment.
This resulted in the removal of the flagship crypto from Tesla’s payment options until further notice. However, Musk said the door of the company is open for better alternatives.
Cardano (ADA) Is 1.6 Million More Energy Efficient Than Bitcoin (BTC)
In an interview with Forbes in late April, Charles Hoskinson, the CEO of Input Output Global (IOG), described the advantage that the proof-of-stake (PoS) consensus algorithm has over proof-of-work (PoW) that currently powers the energy-consuming Bitcoin (BTC).
Hoskinson said with proof of stake systems, instead of mining we say, “We’re just going to go ahead and weight your stake proportionally, treat it like a synthetic lottery, and you should win on average that much.”
Hoskinson added that in proof of stake (PoS), “you don’t have that gargantuan overhead and energy expenditure for deciding who gets to make a block, it means you can put a lot of your magic in the other two stages. So you end up getting protocols that are much lighter and massively more energy efficient. Cardano, for example, is 1.6 million times more energy-efficient at the moment than bitcoin.”
There Is a Space for Cryptos like Cardano (ADA) at Tesla
According to Elon Musk in the tweet that crashed the crypto market a couple of hours ago, Tesla still supports crypto but looking for those that use less than 1% of what Bitcoin consumes in a transaction. This is where Cardano can come in since ADA is 1.6 million energy-efficient than BTC according to Charles Hoskinson.
Obviously, Elon Musk has not turned to any cryptocurrency as a better alternative to Bitcoin, but many cryptographic projects, including Cardano (ADA), have already started pushing their lucks.
Charles Hoskinson has even invited the billionaire to a conversation, but no response yet as at the time of writing.
“Elon Musk, are we finally going to have the Cardano conversation? Come to my farm in Longmont with Kimbal. Got sweet tea and minidonkeys.”
@elonmusk are we finally going to have the Cardano conversation? Come to my farm in Longmont with Kimbal. Got sweet tea and minidonkeys
— Charles Hoskinson (@IOHK_Charles) May 13, 2021
Cardano (ADA) Recorded All-Time Highs despite Market’s Unfavorable Situation
Cardano (ADA) has been standing tall amidst the unfavorable situation in the crypto market. This unusual performance has been attributed to the system that currently powers the crypto project since the major culprits are the proof of work (PoW) systems.
Cardano has managed to record a new price all-time high above $1.90. At the time of filing this report, ADA is trading at $1.92, with a relatively 17% price upsurge in the last 24 hours.