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Charles Hoskinson, Founder of Cardano, Asserts That Bitcoin Is Not Decentralized

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Charles Hoskinson, the founder of Cardano, has delivered strong criticisms against the United States Securities and Exchange Commission (SEC), questioning the way the entity regulates cryptocurrencies, specifically Ethereum, Bitcoin, and Cardano. Furthermore, he questioned the decentralization of Bitcoin and elicited responses from other prominent figures in the industry.

His critique focused on the confusion and frustration he experiences due to the lack of clarity in the SEC’s differentiation, especially concerning the Howey test, a key criterion used to determine if an asset qualifies as a security.

Hoskinson’s criticisms go beyond rhetoric and delve into legal aspects. Charles emphasized the decentralization of Bitcoin and the expectation of profits from investments in BTC, referring to enthusiasts as “orange pill moon boys,” suggesting an inherent expectation of benefits among them.

As a central point, the Cardano founder raised questions and challenged the nature of Bitcoin, postulating the theoretical possibility of a 51% attack if three major mining pools were summoned. This challenge to the common belief in Bitcoin’s decentralization sparks ongoing debates in the blockchain community.

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The Community Responds to Hoskinson

The response to his claims was swift. Adam Back, CEO of Blockstream, defended Bitcoin’s decentralization, highlighting its organic growth from an initial value of zero and the absence of an initial coin offering (ICO) as key differentiators.

Hoskinson, in turn, clarified that Cardano did not undergo an ICO and provided details about Cardano’s launch, emphasizing that it was an “airdrop” outside the United States.

The discussion delved into the technical realm with Erik Voorhees, CEO of ShapeShift, addressing Hoskinson’s claim of a potential 51% attack on Bitcoin. Voorhees dismissed this idea as a common myth, explaining that mining pools do not control the hash rate, and it can easily leave a pool if it behaves improperly.

In the last 24 hours, ADA experienced a 1% decline in its value. According to the latest CoinMarketCap data, ADA is trading at $0.3759 per unit. Its market capitalization is $13.229 billion, and its trading volume over the last 24 hours was just over $255.4 million.

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Afroz Ahmad