u.today
The broader crypto ecosystem went agog when the news of the Bitcoin (BTC) and Cardano (ADA) Bridge collaboration broke out. Despite this excitement, some pro-Bitcoin experts like Fred Krueger believe this update is overhyped, as Bitcoin does not necessarily need proof-of-stake (PoS) protocols to boost its utility.
Krueger's position and community feedback
The self-acclaimed Bitcoin maxi asked the public, "Why?" The public thinks Bitcoin needs chains like Ethereum and Solana. He said some of the core innovations on these PoS chains, like DeFi and NFTs, have small use cases that Bitcoiners do not need.
He said nothing will move "the needle on Bitcoin's core Store of Value use case."
This extreme position has triggered a massive reaction from community members. First, BitcoinOS, the developer behind the Grail Bridge that connects Cardano, disagreed with Fred Krueger.
The platform said, "Decentralized lending markets are the perfect complement to BTC, which is the most pristine collateral asset known to man." It also emphasized that it is bridging to other protocols so that it will not consistently fork the main Bitcoin network.
Other experts like Dan Held also chipped in to correct Krueger’s disposition. Held reiterated that speculation is the main driver of value for all chains, including BTC. Based on this, he said, "DeFi doesn't conflict or detract for the SoV thesis."
Benefits for all chains
One unique trend for all blockchains is the push to use one asset as collateral to earn another. The interoperability features make this possible through bridging and related interconnectivity.
Using the Babylon protocol, Cardano and Bitcoin are also mulling a staking model that can benefit both communities. While Bitcoin maxis consider this a detraction, core proponents of interoperability like Charles Hoskinson are optimistic that the trend will benefit the broader crypto ecosystem.
With the community’s response to Fred Krueger, it appears the landscape is shifting in visible ways.