Cardano Courts Tesla As ADA Hits An All-Time High
Crypto Briefing | May 14, 2021 02:37AM ET
Cardano has implored Tesla (NASDAQ:TSLA) to accept its ADA cryptocurrency as a low-energy Bitcoin alternative. Cardano is soliciting Tesla to accept its ADA cryptocurrency, as shown by statements published by project representatives on Twitter (NYSE:TWTR). The Cardano Foundation published an infographic today that suggests its ADA cryptocurrency is ideal for Tesla. It drew attention to what it perceives to be similarities between both parties.
Cardano creator and IOHK CEO Charles Hoskinson followed up on the tweet by posting an invitation to Elon Musk:
“Are we finally going to have the Cardano conversation? Come to my farm in Longmont with Kimbal. Got sweet tea and minidonkeys?”
Though Musk did not reply to the comment, Cardano’s efforts to solicit Tesla seem to be welcome given Tesla’s announcement yesterday that it suspended Bitcoin payments.
In that announcement, Tesla stated that it is “looking at other cryptocurrencies that use less than 1% of Bitcoin’s energy per transaction.” It remains to be seen whether it will investigate Cardano as one of its options alongside other coins.
h2 Is Cardano a Logical Choice?/h2At first glance, ADA appears to be a good choice for Tesla given its high market ranking. It is currently the fourth largest cryptocurrency, boasting a market cap of $60 billion. ADA reached an all-time high of $1.93 today and its price is up 10% over the past 24-hours.
Plus, the fact that Cardano transactions are confirmed through staking rather than mining means that it meets one of Tesla’s requirements: a coin that uses less energy than Bitcoin.
On Twitter, Cardano asserted that its project is “in line with many U.N. Sustainable Development Goals” and that it is “transforming the industry’s green credentials and reducing environmental impact.” It added that “running a node is accessible and affordable.”
h2 ADA Has Little Commercial Acceptance/h2
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Despite those advantages, Tesla is unlikely to select Cardano for one simple reason: ADA is rarely used in commerce.
According to Cryptwerk, less than 200 merchants accept ADA. By contrast, 6,600 merchants accept BTC and 3,200 merchants accept ETH. Even Dogecoin, which is accepted at by than 1,300 merchants, is a more likely choice for Tesla’s next payment option.
Though Tesla could turn this trend around by becoming the first major company to accept ADA, it seems unlikely that it will do so in light of a general lack of previous commercial interest.
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