The Bitcoin bull market left everyone indifferent. This has been the most popular discussion among experts in the past few weeks. Some people believe that Bitcoin will go to the moon, while others believe that Bitcoin will die. Charles Hoskinson, the founder of Cardano, is one of the doubters of Bitcoin.
Bitcoin still valuable due to it popularity
In an interview with Cardano’s official subreddit, Hoskinson affirmed that just like with fiat currency, the only value of bitcoin is acceptance. If it loses its only strength: popularity, it will eventually die.
Bitcoin is valuable because it is valuable. It has no technical advantage. In fact, it is the least advanced and least future of all cryptocurrencies. Apart from its existence there is no other reason.
Cardano is the third generation blockchain, which is why Hoskinson offers higher potential value than Bitcoin. Bitcoin is the first generation of the blockchain. Basically, coins are moved from one wallet to another, nothing more.
Ethereum is an example of a second generation blockchain. Smart contracts not only deliver value, they also allow employees to regulate these operations, making the blockchain more functional. However, these blockchains have some design shortcomings that make it difficult to stand the test of time.
On the other hand, as a third generation blockchain, Cardano is trying to solve the famous blockchain trilemma by adding a number of technologies to the second generation blockchain. Ultimately, this should make the network scalable, secure, and efficient without losing its decentralization.
Hoskinson added that Bitcoin will have to make some key developments to bring it in line with its competitors.
As soon as bitcoin is abandoned by another cryptocurrency, bitcoin dies, as there is no reason to leave it with its neighbors unless they find a way to innovate again.
There are various developments that focus on improving Bitcoin. The best known are Segwit, Taproot, Schnorr signatures, and the Lightning Network. If everything is achieved, Bitcoin can theoretically handle the exponential increase in transaction volume.
Bitcoin needs a better system of Governance to survive
However, in an interview, Hoskinson said that the fragmentation and lack of orientation in the community is costing developers a lot of time.
“Bitcoin lost some of its earliest and best people over just the block size-a system parameter. It just tells you, if you can’t even agree on something so trivial as a block size, then how do you get post-quantum crypto when quantum computers come,? How do you get smart contracts?”
Hoskinson spoke about topics that could be the key to the future. In his view, the lack of consensus among developers in the face of future problems such as B. the network reorganization, lead to problems. When the blockchain reaches information at the PB level, it reaches oversized blockchain management and similar undiscussed issues.
To solve these problems, blockchain needs a governance system. From Hoskinson’s point of view, Satoshi Nakamoto couldn’t imagine anything.
What does the future of the crypto ecosystem look like? The life cycle applies to the blockchain: Bitcoin dies, which gives way to a better blockchain, owns all goods, no damage.
“It’ll absorb all the goodness of that system but won’t carry any of the bad characteristics. So you’ll still have the blockchain component, it’ll still settle transactions the way Bitcoin does … But then you’ll have smart contracts, governance, interoperability and much faster capabilities, the ability to global scale and work really well on a cellphone and have privacy and all these additional features and functionalities.”