Cardano Integrating with Bitcoin Sparks Mixed Reactions

The recent amalgamation of Cardano [ADA] with the Bitcoin [BTC] network has stirred up discussions regarding its creator, Charles Hoskinson.

In the most recent development, Bitcoin OS, the conduit linking BTC and Cardano, asserted that the integration would transform the latter into an adjunct of Bitcoin, resembling a BTC L2. The statement read,

“Through the BOS Grail bridge connection, Cardano is on track to be recognized as a legitimate extension of Bitcoin.”

The system also highlighted that the Grail Bridge mechanism will enable Cardano and other networks to benefit from the security of the Bitcoin network and its substantial capital base exceeding $1.3 trillion in liquidity.

Reception from the Community

Nevertheless, the portrayal of Cardano as an extension of Bitcoin did not sit well with the community, especially in light of the founder’s prior criticisms.

In a viral video from September, Hoskinson questioned the necessity of Bitcoin in the sector and pondered over its long-term viability.

He went on to mention,

“I fail to envision its (Bitcoin) survival. It seems to operate more like a belief system rather than an ecosystem.”

Several users swiftly noticed that the Bitcoin OS update hinted at a shift in Hoskinson’s stance towards Bitcoin. One user remarked,

Austin Federa from the Solana Foundation expressed criticism of the move and questioned how far Cardano could regress.

Contrary to this, Romain Pellerin, the CTO at IOHK, the firm backing Cardano, clarified the update and explained,

In simpler terms, the bridge will primarily facilitate a trustless integration between the two networks, diverging from the purported BTC L2 narrative.

Despite this explanation, many users did not resonate with the update or the concept of Cardano assuming a ‘BTC L2’ status. This sentiment was highlighted by a sharp drop in overall sentiment towards the negative side.

Bitcoin OS expressed confidence that the integration would propel ADA forward in the long run, particularly post-2025. Nevertheless, the altcoin faced challenges below the critical long-term trendline resistance (white) at the time of reporting.

Currently valued at $0.36, showing an approximately 4% increase on the weekly charts. The future trajectory of ADA remains uncertain leading up to 2025.