Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice, and is solely the writer’s opinion.
Earlier this week, Cardano [ADA] founder Charles Hoskinson poked fun at Solana [SOL] following a massive outage that affected the network. While some perceive it as harmless banter, others regard Hoskinson’s comments as unprofessional and harmful to the crypto community as a whole.
This always works https://t.co/5kVRVGFM4l pic.twitter.com/X9yJXcETQn
— Charles Hoskinson (@IOHK_Charles) February 6, 2024
This comes days after Hoskinson’s skeptical remarks about the potential of Bitcoin’s [BTC] Layer 2 (L2) solutions created quite a stir on X (formerly Twitter).
Charles Hoskinsons’ comments came after Muneeb Ali, co-creator of the Stacks protocol, provided an update on talks at the Satoshi Round Table in Dubai.
Having been around for more than ten years, I have seen this narrative thrice. It follows the halving.
Every L2 venture will learn that it’s impossible because Bitcoin cannot change enough to support the things required for a vibrant L2 environment. Both Ethereum and Cardano… https://t.co/56jbfCax4U
— Charles Hoskinson (@IOHK_Charles) February 4, 2024
These remarks highlight a growing dispute in the cryptocurrency world over the flexibility and future of Bitcoin’s network architecture. Hoskinson stated that Bitcoin’s architecture is incapable of supporting the dynamic environment necessary for successful L2 solutions.
He compared this with the ongoing enhancements to the Ethereum and Cardano networks, which aim to increase developers’ ability to implement efficient, dependable, and secure L2 solutions.
Hoskinson’s comments sparked debate among the cryptocurrency community. Many users have expressed support for Bitcoin, claiming that the network’s foundational strengths eliminate the need for new features or functions to enable L2 solutions.
This debate points out the many opinions in the crypto sector on the direction and development objectives of the main blockchain networks.
Now, let us look deeper into certain basic aspects of the ADA coin before challenging our AI friend with questions about the coin’s price movement.
ADA coin 101
ADA is more than just a digital currency; it is a testimonial to the secure exchange of value, removing the need for middlemen.
Every ADA owner becomes a stakeholder, contributing to the Cardano ecosystem in many ways.
The initial ADA supply was limited to 45 billion units, with a one-of-a-kind distribution technique.
The Cardano Foundation, EMURGO, and IOHK are critical components of the Cardano ecosystem, and they were allotted funds during the pre-launch sales event.
The deliberate allocation of genesis blocks laid the groundwork for Cardano’s journey.
The innovative Ouroboros Proof-of-Stake (PoS) consensus technique underpins Cardano’s functionality.
Ouroboros is the first blockchain consensus mechanism based on peer-reviewed research, distinguishing Cardano from its competitors.
Plutus, Cardano’s native smart contract language built from Haskell, works in tandem with Ouroboros. This Turing-complete language, similar to Haskell programs, powers Plutus smart contracts.
Cardano’s two-layer design increases its versatility and scalability even more. Transaction validation and cryptocurrency transfers are handled by the Cardano Settlement Layer (CSL).
The Cardano Computation Layer (CCL) is in charge of computational details such as smart contracts.
We started putting our AI companion to the test by asking it questions about ADA’s future. ChatGPT’s ability to express itself is presently hindered due to limits imposed by the developers.
To get it to say what it wanted, we applied the “jailbreak” technique.
ChatGPT’s take on the SEC verdict
I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.
At first, I asked it about the impact of the Ripple [XRP]-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.
While the classic version said it didn’t have access to real-time information, the jailbroken version talked at length about the potential implications of the Ripple-SEC verdict for ADA.
But the bot said the verdict sent shockwaves through the crypto space. This is completely untrue, as the crypto community celebrated the verdict as a partial victory for Ripple.
The bot further claimed that ADA emerged relatively unscathed, as regulators provided clear guidelines distinguishing it from securities.
This again is completely false, as the regulating body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC again reiterated its claim regarding ADA being a security in its latest lawsuit against the Kraken crypto exchange.
ChatGPT’s take on ADA’s future
I asked ChatGPT what it thought the price of Cardano would be by the end of 2024.
The bot claimed that ADA will become one of the top-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption, and a surge in demand.
However, it refused to provide a specific price prediction.
I again asked it the same question using a different jailbreak prompt.
This time, the bot was able to provide a clear answer but, seemingly, a preposterous one. It said it expected ADA to rise to $5—a 12x surge, within a month.
Though the world of crypto is indeed very volatile and unpredictable, a 12x surge within a month is a very tough task—nearly impossible—given the metrics.
I then asked it to predict ADA’s price towards the end of 2024.
The bot said ADA will reach $10 by the end of 2024—a 25x surge within a year. It looks like the bot assumed it would hit $5 by December 2023 and keep rallying further.
ADA’s price movements
The Cardano (ADA) price has recently shown clear signs of setting itself up for a rally.
ADA gained 2.2% in the past week and was valued at $0.5336 during press time.
The MACD depicted several minor green histograms above the half-line, which indicates a buyer’s momentum. The Chaikin Money Flow (CMF) indicator was climbing over the zero mark, indicating buying pressure.
Over the past several days, Cardano has seen a sharp increase in activity. This rising activity could be attributed, in part, to the growing number of payments occurring on the network.
So, overall, things look good for the coin as ChatGPT predicts ADA to reach ‘unprecedented heights’.
However, keep in mind that ChatGPT can be prone to making mistakes, so don’t take its predictions as advice, and conduct your own research before buying any crypto.