Charles Hoskinson has expressed his skepticism about bitcoin’s ability to serve as the world’s future safe haven in a recent interview. However, the CEO of Input Output believes that Cardano, which he invented, has the potential to make it happen.
Increased energy use limits available capacity.
In a recent interview, Charles Hoskinson spoke of the difficulties that would prevent bitcoin from establishing itself as the main store of value in the market in the long term.
According to him, the growing energy consumption of cryptocurrency is a contributing cause to its ultimate centralization. He also questioned the idea that the shortage of the product is due to high production costs.
According to Hoskinson, monetary policy and the utility of the underlying asset are the main drivers of its value. The work required to create one frame compared to another is a thousand times greater, even though all the frames are the same and the demand is the same.
Characteristics of a digital value storage system
In Hoskinson’s view, there is no need to employ an energy -intensive method like bitcoin when more energy-efficient alternatives exist. He envisioned a currency that could be used as a long-term store of value in a variety of situations. A high-speed system capable of processing millions of transactions per second would be installed.
Although he admits that bitcoin does not offer any guarantees at the moment, Hoskinson believes that it has the potential to evolve. He believes that a cryptocurrency like Cardano has the potential to become the world’s safe haven if the above conditions are met.
Despite the reservations of the Cardano founder, bitcoin remains the cryptocurrency most likely to replace gold as a haven asset in the future. When it comes to the use of cryptocurrency during a coronavirus pandemic, some financial professionals and organizations seem to believe that it can be done effectively.
