- Cardano will be an extension of the Bitcoin network after the latest integration.
- The community had a mixed reaction as market sentiment around ADA dipped lower.
The recent integration of Cardano [ADA] in the Bitcoin [BTC] network has once again raised questions about its founder, Charles Hoskinson.
In the latest update, Bitcoin OS, the bridge between BTC and Cardano, claimed that the integration of the latter would make it an extension of Bitcoin, more like a BTC L2. It declared,
“By connecting to the BOS Grail Bridge, Cardano can soon be called a true extension of Bitcoin.”
It added that the Grail Bridge system will enable Cardano and other chains to enjoy Bitcoin network security, a massive capital base of more than $1.3 trillion in liquidity.
Community responds
However, Cardano’s mention as an extension of Bitcoin did not bode well for the community, given the founder’s previous criticism.
In September, there was a viral video in which Hoskinson claimed that the industry no longer needs Bitcoin and questioned its long-term sustainability.
He added That,
“I just don’t see how it (Bitcoin) survives. It is a religion, not an ecosystem.”
Some users quickly be that the Bitcoin OS update was a sign of Hoskinson’s softening stance on Bitcoin. One user said:
“Cardano founder @IOHK_Charles just reversed his stance on Bitcoin and announced that Cardano L1 is evolving to become a Bitcoin L2”
For his part, Austin Federa of the Solana Foundation criticized the move and wondered how low Cardano could go.
“Just when I thought Cardano couldn’t slow down.”
But Romain Pellerin, CTO at IOHK, the research firm behind Cardano, clarified the update and said,
“Cardano will give Ordinals the smart contract capabilities that Bitcoin lacks. It is not the case that Cardano will switch from an L1 to an L2 of Bitcoin. It’s called UTXO-compatible interoperability between two L1s”
In other words, the bridge will be much more of a reliable integration between two chains, and not exactly a BTC L2 as some claim.
That said, most users disagreed with the update or the idea of Cardano being a ‘BTC L2’. This was illustrated by a sharp decline in weighted sentiment against negative territory.
Source: Santiment
Bitcoin OS was confident that the integration would do that Give ADA a boost in the long term, especially from 2025 onwards. However, the altcoin was struggling below the key long-term trendline resistance (white) at the time of writing.
It was valued at $0.36, up about 4% from the weekly charts. It remains to be seen how 2025 will pan out for ADA.
Source: ADA/USDT, TradingView