Charles Hoskinson, founder and CEO of Cardano developer IOG, has criticized the long-term viability of Bitcoin (BTC), the world's largest cryptocurrency by market cap.
Bitcoin needs the cryptocurrency industry to survive
The Cardano founder expressed this concern in a recent high-profile interview, emphasizing that Bitcoin would not be able to survive without the industry.
Hoskinson's comments were in response to some Bitcoin advocates who believe the cryptocurrency has grown to the point where it is no longer dependent on the broader crypto ecosystem.
According to Hoskinson, Bitcoin needs the crypto ecosystem, including exchanges and other infrastructure, to survive, but he noted that the entire crypto ecosystem can survive without Bitcoin.
“Bitcoin is no longer self-sufficient” He said.
Any asset could replace Bitcoin as digital gold
While Hoskinson acknowledged Bitcoin’s valuation as digital gold, he argued that ultimately the asset is nothing more than a token based on a deflationary monetary policy.
He argued that Bitcoin could always be replaced by another digital asset that offers equal or greater security. Hoskinson reflected on the seven-year effort put in by Cardano's research and development department to design a secure proof-of-stake (PoS) protocol.
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He revealed that the ecosystem is considering the appropriate approach to adopt in building an energy-sufficient and secure consensus protocol that has all the properties of Bitcoin.
However, Hoskinson said the bitcoin community viewed these efforts as scams and dismissed the possibility of such technology ever coming to fruition.
Responding to the criticism, Hoskinson argued that Bitcoin is a religion, not an ecosystem, and stressed that he cannot imagine it surviving in the long term.
“Bitcoin doesn't necessarily need to. Bitcoin needs to grow, adapt and change in order to survive in the long term.” The Cardano founder added:
Hoskinson warned that Bitcoin could suffer the same fate as Microsoft, which lost a significant portion of its market power due to a paradigm shift in the technology market.
Hoskinson further noted that BTC may one day lose its market dominance as the industry advances and focuses on developing innovation outside of the Bitcoin network.
The Cardano founder has been vocal about Bitcoin’s technical shortcomings. As previously reported, he called it Bitcoin’s biggest enemy due to the community’s failure to bring innovation to the network.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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