Cardano Inventor Made Surprising Predictions About Bitcoin!

Cardano (ADA) founder Charles Hoskinson presented his arguments for determining whether Bitcoin is digital gold. Here are the details…

Cardano inventor calls Bitcoin “digital gold”

There is a serious debate over whether Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, should be called “digital gold”. “Digital gold” is the term Bitcoin proponents use to lure many investors into adopting the top asset class. According to Bitcoin enthusiasts using it, BTC can provide the same store of value as gold, the precious yellow metal.

Cardano founder Charles Hoskinson recently supported the claim that Bitcoin is digital gold. Hoskison made this statement in a 16-minute live YouTube broadcast. Hoskinson used the following statements:

You hear a lot about Bitcoin being digital gold. It may surprise you that I agree with this. I think Bitcoin is not just digital gold, it also has real use and utility.

Hoskinson points to volatility

While Hoskinson sees BTC as a good store of value, he thinks the cryptocurrency falls short of two main features of money (trading instrument and unit of account) due to its enormous volatility. However, the same cannot be said for gold. The Cardano founder uses the following phrases:

The problem is, it’s not as good as Bitcoin [a medium of exchange and unit of account]. Pricing things in [BTC] is difficult. People don’t want to trade using [Bitcoin] in real life; They just want to hide.

There are also complaints about BTC

While Hoskinson appreciates the benefits of Bitcoin’s robust monetary policy, there are also things he doesn’t like. He points out that there are synthetic versions of the largest cryptocurrency that can run on other Blockchains. Given this, he is convinced that the energy-hungry PoW consensus algorithm is not needed. “Wrapped Bitcoin is Bitcoin again,” Hoskinson said.

Wrapped Bitcoin, as we have also reported as Kriptokoin.com, is the Ethereum-based version of the largest crypto. WBTC is currently the 19th largest cryptocurrency with a market cap of $4.8 billion. There are other versions of Bitcoin on other Blockchains such as Polkadot, but they are less popular. He believes that leaving miners to produce two million coins over the next 100 years is not a good investment. Especially in terms of energy.

Hoskinson notes that despite Bitcoin being promoted as opposed to central banks, the vast majority of circulating Bitcoin is actually held in custody accounts. Ethereum had recently switched to PoS. But to Hoskinson, it’s unlikely that Bitcoin will go through the same dramatic shift.