Key Points
- The recent integration of Cardano into the Bitcoin network has stirred mixed reactions.
- Despite concerns, Bitcoin OS believes the integration will boost ADA in the long run, especially from 2025.
Cardano’s latest integration into the Bitcoin network has sparked debate, particularly about its founder, Charles Hoskinson.
Bitcoin OS, the bridge between BTC and Cardano, suggested that the integration would transform Cardano into a Bitcoin extension, likening it to a BTC L2.
Integration Benefits
The Grail Bridge system, according to Bitcoin OS, will enable Cardano and other chains to leverage the security of the Bitcoin network and its $1.3 trillion liquidity base.
However, the community had mixed feelings about Cardano being an extension of Bitcoin, especially given Hoskinson’s previous criticisms of Bitcoin.
Hoskinson had previously suggested that the industry no longer needed Bitcoin and questioned its long-term viability.
Some members of the community saw the Bitcoin OS update as a sign of Hoskinson’s changing attitude towards Bitcoin.
Community Reactions
Austin Federa from the Solana Foundation criticized the move, questioning how much lower Cardano could go.
Romain Pellerin, CTO at IOHK, the research firm behind Cardano, explained that Cardano would provide Ordinals with the smart contract capability that Bitcoin lacks.
He clarified that Cardano is not switching from being a L1 to being a L2 of Bitcoin, but rather facilitating interoperability between two L1s.
Despite these clarifications, many users were not in favor of the update or the concept of Cardano becoming a ‘BTC L2’. This sentiment was reflected in a significant drop in weighted sentiment to negative territory.
Bitcoin OS remains confident that the integration will benefit ADA in the long run, particularly from 2025 onwards.
At the time of writing, the altcoin was struggling below key long-term trendline resistance at $0.36, up about 4% on the weekly charts. The impact of the integration on ADA’s future remains to be seen.
