Most Bitcoin (BTC) will exist on ADA and Ethereum blockchain in wrapped-token according to Charles Hoskinson – future outlook

  • In a Twitter video, Cardano founder Charles Hoskinson showed a strong belief in BTC and compared it to gold in a recent statement. 
  • According to him, Bitcoin does not need its blockchain to stay relevant as digital gold.

Cardano founder Charles Hoskinson has made a profound claim about Bitcoin in the recent future outlook of his project. According to him, there is a possibility of having all Bitcoins on the Ethereum and Cardano networks shortly. 

In just 5 years, the majority of all mined Bitcoin will be on the Cardano and Ethereum chains.

In the Twitter video, he showed a strong belief in Bitcoin and compared it to gold. Hoskinson mentioned that Bitcoin is digital gold, and also has real use cases and utility. Comparatively, both Bitcoin and gold mining require energy. In this case, the cost of production and scarcity factors reflect the true value of both assets. In addition, the current price of BTC represents the production cost considering that gold would still have value without the manufacturers. Hoskinson argues that a similar theory applies to gold. 

Just as gold would still be valuable without the producers, BTC would still be valuable without mining. In this case, the value may even increase with higher demand, since the future supply will no longer increase.

According to the Cardano founder, BTC does not need its blockchain to stay relevant as digital gold. This is a result of the presence of blockchains like Cardano or Ethereum and the leverage of competitors’ smart contract programs where it can transition to. As of now, users can take advantage of wrapped tokens to send BTC to the Ethereum or Cardano network. 

Bitcoin has failed as a decentralized asset – Hoskinson

Hoskinson predicts that the majority of all Bitcoin-wrapped tokens would find their way to other chains in the next five years. This is because “gold mining is running out”.

With the rising energy prices and greater mining difficulty, he disclosed that it would soon be valuable to mine Bitcoin. 

Letting the BTC mine run for the next 100 years just to get 2 million BTC is that really a good energy investment?

Regardless of his belief in the asset, Hoskinson believes that the Bitcoin ecosystem would not catch up with the development of Cardano and Ethereum.

The BTC payment network is no longer useful. (…) BTC is currently only optimized to be the gold mine.

In terms of energy consumption, transaction cost, and smart contract functionality, Ethereum and Cardano has an edge over Bitcoin. Bitcoin is responsible for 0.4 percent of the global energy consumption while Ethereum currently conserves energy of up to 99.9 percent since the merge. Hoskinson also believes that BTC has failed as a decentralized asset as most of the tokens in circulation are managed by third parties. However, in the form of wrapped BTC, Cardano and Ethereum users can store transactions themselves and enjoy anonymity.