Bitcoin is “its own worst enemy” and will lose to Ethereum: Charles Hoskinson
IOHK CEO and co-founder of Ethereum Charles Hoskinson has argued that Bitcoin has a substantial competitive disadvantage due to its slow rate and is being usurped by proof-of-stake networks.
In a 5-hour podcast using computer scientist and AI researcher Lex Fridman, the creator of Cardano contended that the proof-of-stake network provided the initial cryptocurrency superior speed and functionality.
“The problem with Bitcoin is that it is so slow – it is like mainframe programming previously. The only reason it still exists is because so much is spent to maintain it. “
“You have to update the damn thing! ” Hoskinson calls out about Bitcoin’s underlying proof-of-work consensus mechanism, emphasizing that Bitcoin’s programmatic utility lags far behind its competitors.
Hoskinson also criticized the Bitcoin community for their reluctance to innovate beyond the base layer of the cryptocurrency and also described the scaling solutions of the second layer of Bitcoin as “very brittle “.
“It [Bitcoin] is his own worst enemy. It has network effects, it’s a brand name, it’s regulatory approval. But there is no way to change the system, not to fix the apparent weaknesses in this system. “
However, Cardano’s founder argues that Ethereum grew to compete with Bitcoin’s network but has a culture of nimble development that includes evolution.
“What is really interesting is that Ethereum doesn’t have this problem […] It gets to the point where it has the same network effect as Bitcoin, but the community has a completely different culture, they love to grow and upgrade, “he said, including:
“If I just had to bet between these two systems, I would say that Ethereum would win the war against Bitcoin nine times out of ten.”
However, Hoskinson declared the struggle for crypto dominance was a “much more complicated game” compared to the rivalry between Bitcoin and Ethereum, claiming that many other blockchains are now fighting for market share.