What are the differences between Bitcoin and ADA?

Wondering what, besides the difference between proof-of-work and proof-of-stake what the real differences are. Why would someone choose to invest in Bitcoin over ADA in the long run?

If there are reasons to choose Bitcoin over ADA, should a new coin on Cardano be created as a real proof-of-stake alternative to Bitcoin?

Hello @Kobayashi

Since your question implies that you are looking at token value and not network value, then you should go with Bitcoin.

Almost all organizations/ foundations/ groups/ famous supporters of Bitcoin are involved in promotion and support of Bitcoins financial value. They are all involved because of a Bitcoin and Bitcoin Network is just a feature of a Bitcoin itself. They all are working on a premise that Bitcoin is new currency or new gold or new digital real-estate or new anti-inflation hedge, etc… This way they can sell or borrow against Bitcoins price increase to get dollars.

There is no foundation or organization that is doing anything like that for ADA and probably never will be. Most of Cardano fans are here for Cardano network and ADA is just one of the features of the network. For example, I put dollars into Cardano monthly with a goal to never need any dollars in a future and hopefully to never need to sell or borrow for dollars. If ADA is at $0.01 or $1 or $100 I’m still buying some every month.

There is no need for any technical comparisons if question is just about the tokens and investing, because they ideologically do not represent the same thing.

If you want investment token, then it’s Bitcoin. If you want to be part of new digital economy, then it’s Cardano network.

This is just my view :smiley: There will of course be others with different views/ opinions/ goals.

I understand that crypto is currently trendy and full of investors and traders. There area a lot of people involved that don’t care much about crypto movement. But just like everything it will go trough price and trend cycles. :cyclone:

Hope this info helps in your decision process :smiley:


Here’s a short video about what is Cardano. It was recorded ~summer 2021.


Thanks. I’m not here primarily as an investor, I’m here to support a project I believe in: a Cardano powered future.

The reason I posed this question is that I’m worried about the environmental impact of Bitcoin and wonder if there could be a proof-of-stake alternative powered by Cardano.

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As is right now Cardano can wrap all Bitcoin in existence and run it on Cardano Network, but that’s never gonna happen. Cardano can easily be suitable to be layer 2 for Bitcoin, especially since both Cardano and Bitcoin are UTxO models. Unlike all other top 20 cryptos with layer 2. But that’s also not gonna happen.

There is no governance in Bitcoin. There is only Bitcoin purist that just want Bitcoin to be left alone, on a pedestal, for ever and ever… Unless Bitcoin drops from top 10 market cap spot I don’t think such a huge improvement to Bitcoin would ever be accepted.

Maybe next market crash is gonna change peoples view. Wait and see I guess.

So the value according to Bitcoin maximalists is that the working of Bitcoin won’t be upgraded or changed while ADA evolves with Cardano’s evolution?

I don’t think that care what ADA or any other coin does. Many of them believe that value of Bitcoin comes from the value taken (or transferred) from assets it is suppose to be replacing. Such as gold, stocks, real-estate, etc…

I guess you are right. Would be great to have a alternative to Bitcoin on Cardano just to have a more environmentally friendly alternative for these investors, call it Bitstake for instance. But I think most Bitcoin investors would think it wouldn’t work.

Bitcoin is the betamax, or yahoo of the crypto world… It’s first mover, everyone bought a betamax machine and is using it, but as soon as new tech shows it’s better, it’s dropped like a stone.

Then it will just be a “mention” in the history books… Like CD’s, cassette tapes, altavista.com, Netscape,

It will retain some loyal following but value wise it will be negligable if they don’t update the tech…

Bitcoin is like money and gold. Its simplicity makes it more robust than all other blockchains. Ethereum and Cardano are more powerful but also more vulnerable due to their complexity.

I see the biggest threat to Ethereum or Cardano in second layer solutions for Bitcoin.
Nevertheless, there will definitely not be a single blockchain in the future.

An important difference:
Blockchains like Ethereum and Cardano are powered by companies, organizations, and central personalities. This is not the case with Bitcoin. Bitcoin has been adopted by many players.

Cardano is now extremely dependent on Charles Hoskinson. Cardano is like a toddler who is still dependent on his parents :wink:
In the future, it will hopefully become more independent.
Otherwise, it won’t be much more than a technology startup.

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People always imagine things won’t change and when they do, change can happen very quickly. Bitcoin is the first implementation of blockchain technology, but it’s now obsolete. It has nowhere to go. For the time being it continues to exist because crypto currency is still in its infancy. If in the future we’ll be using crypto currency in a practical way then we’ll eventually gravitate towards technology that meets our needs. Useful coins will, over time, flourish. When new technology emerges it takes a while for people to figure out what to do with it. When people begin to figure out what to do with crypto currencies, the functioning currencies will take off and others, like Bitcoin, will be left behind.

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The blockchain community is sometimes like fans of soccer teams who just talk nonsense about other teams.
Some facts:
POS is not better than POW but has other advantages and disadvantages.

Bitcoin is not obsolete but is a pure layer 1 base technology. Layer 2-3 solutions are possible and in development. See Lightning Network.

Bitcoin is more and more adopted around the world. Calling a growing technology obsolete is not convincing.

Cardano is still at the beginning. But Layer 2 solutions for Bitcoin are also at the beginning.
You can put your head in the ground and believe that your team is better than anything else. But as an investor, you better open your eyes.

Smart contracts are currently not the domain of Bitcoin. Therefore, blockchains like Ethereum and Cardano are very useful and offer more possibilities than Bitcoin.

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Any asset that hou create on Cardano would be a token, not a coin. Anyway, it seems you wonder if one could create a Cardano token that would implement some kind of alternative to POS.

I think not. I don’t think the erc20 standard allows for such time consuming activities.

Hi Freddy, thanks for your correction. I’ll rephrase my question:

Would it be possible to create a token on Cardano that is similar to Bitcoin, but uses proof-of-stake instead?

The goal would be to create a store of value that would appeal to the digital gold/Bitcoin investors, but that hasn’t got the environmental footprint of Bitcoin.

Well, in that sense Ada is already somewhat similar to Bitcoin. Most important, there is a limited supply. The big difference is the reward that bitcoin miners get. When a block has been created, the miners get a reward and the fees.

In bitcoin, the coins are not premined which they are with ada and likely the same is true for any token created on Cardano.

Personally, I think it’s good that coins are premined. That means that you can pay a team such that they can improve the blockchain. That is very difficult with bitcoin. Who should be allowed to vote and, if you do, what should your share of the cost be? The same is true for dogecoin.

Yes it is possible.

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