Cardano founder Charles Hoskinson once again reiterates the importance of fundamentals over short-term price action when commenting on the current market downturn.
Instead of focusing on price, Hoskinson calls on those who are panicking over the sell-off to “calm down,” and “chill out,” implying there’s a bigger picture in play here.
“Lately, I’ve seen an unusually high number of people that are obsessed with price, or they say stuff like, “oh well, everything is failing, the sky is falling.” And there seems to be an utter lack of perspective…”
Specifically, the IOHK boss was addressing newcomers, who typically don’t see the long-term vision of what cryptocurrency will do in the coming years.
Price discovery is irrational
Explaining further, Hoskinson distilled this down to opting out of a fundamentally broken legacy system. Saying it’s already happening now at the nation-state level, citing El Salvador, with more to come, as examples of this.
Drilling down to the individual level, millions of people are also choosing to opt out on a global scale. But Hoskinson says, with that, because it’s never happened before, comes erratic price discovery.
“Each and every person who comes into the cryptocurrency space is opting out in their own way. The problem is, we’ve never really seen this before on a global scale. And so what’s happened is it’s created all kinds of difficult markets.”
In particular, Hoskinson singled out Dogecoin and Shiba Inu as examples of erratic price discovery. Adding that neither has any real utility outside of a social network aspect. While some say this is enough to justify the price, Hoskinson disagrees. Instead, as an old-school thinker, he points to real fundamentals making a real-world impact as the way forward.
Cardano as the backend of nation-states
Tied with this is what Cardano is working on developing now across scalability optimization and governance. Which, over the long term, puts Cardano in a solid position to be “the backend of many nation states.”
“If you look at a five year, a ten year, a fifteen year, a twenty year package, we really feel that there’s a strong possibility Cardano could be the backend of many nation states.”
Hoskinson envisions the chain running billions of transactions daily, managing national elections, acting as a property register for nation-states, and as the backbone for the identity systems of the future.
He adds that all of this will converge at some future point, making Cardano “the biggest preserver of human rights the world has seen.”
Rather profoundly, when linking this back to the current price panic, Hoskinson said he doesn’t know how much a fully operational Cardano blockchain will be worth in the future.