Bitcoin Will Be Overtaken By Proof-of-Stake Networks: Charles Hoskinson

Charles Hoskinson, the co-founder of Ethereum claims that Bitcoin is poised to be usurped by proof-of-stake networks that are superior in terms of speed and functionality. The Cardano founder asserts that the primary cryptocurrency lacks the competitive edge needed to stay relevant in the market.

Charles Hoskinson Blames Bitcoin Community for Lack of Innovation

Hoskinson recently appeared on the Lex Fridman podcast for a five-hour discussion on the shortcomings of the Bitcoin community and the future of proof-of-stake networks. 

During an exchange on Bitcoin’s underlying mechanism — Proof-of-Work consensus — Hoskinson argued that the entire thing was outdated, and lagged behind its rivals. He said, “The problem with Bitcoin is that it is so slow — it’s like the mainframe programming of the past. The only reason it’s still around is that there is so much invested in keeping it around.”

Blaming the Bitcoin community for its resistance to innovate beyond its first layer, Hoskinson stated that even its layer-two scaling solutions are “highly fragile.” He opined that “Bitcoin is its own worst enemy” and that despite all the advantages of branding and backing, there are no obvious approaches to correct its drawbacks.

Ethereum Is A Worthy Successor to Bitcoin

In Hoskinson’s view, Ethereum is best placed to dethrone Bitcoin due to its development culture’s tendency to welcome evolution. He remarked, “What’s really cool is that Ethereum does not suffer that problem […] it’s getting to the point where it has the same network effect as Bitcoin, but the community has a completely different culture, they love evolving and upgrading.”

Furthermore, he added, “If I had to bet between just those two systems, I’d say nine times out of ten Ethereum is going to win the fight against Bitcoin.”

But Hoskinson pointed out that the rivalry between different cryptocurrencies is a “much more complex game” and cannot be simplified to Ethereum vs Bitcoin. He underlined that many contenders are competing for a bigger market share, with Cardano being one of them.