Charles Hoskinson, the controversial CEO of IOHK and founder of Cardano (ADA), recently took a hard line at Bitcoin (BTC) in an interview with Lex Fridman.
According to Hoskinson, bitcoin is beginning to lag behind other cryptocurrencies due to the outdated underlying blockchain technology. He believes that proof-of-work (PoW) networks will be overtaken by proof-of-stake (PoS) networks.
“The problem with Bitcoin is that it’s so slow – it’s just like the mainframe programming of the past. The only reason it’s still there is because so much has been invested in maintaining it.”
Hoskinson thinks Bitcoin should finally be upgraded. This has been tried many times in the past, but almost never succeeded. It is the reason why Bitcoin Cash (BCH) came into existence in 2017 via a hard fork and the reason why Ethereum (ETH) was created in 2015. Ethereum founder Vitalik Buterin then wanted to introduce smart contracts on Bitcoin, but was unable to do so, so he set up his own blockchain network.
“It is its own worst enemy. It has the network effects, it has the name, it has the approval of the regulatory authorities. But there is no way to change the system, or even correct the obvious flaws in the system.”
Said Hoskinson about the problems of Bitcoin. He adds that this is why Ethereum will “win” from Bitcoin:
“What’s really cool is that Ethereum doesn’t have that problem. It quickly goes to the point where it has the same network effect as Bitcoin, but the community has a completely different culture, they love to evolve and upgrade.
If I had to bet between just those two systems, I would say that nine times out of ten Ethereum is going to win the battle against Bitcoin.”
It is striking that Hoskinson just said a few weeks ago that Ethereum itself is his worst enemy. He called Ethereum the “Ethereum killer that will kill itself.” Buterin and Hoskinson had a long disagreement, as Hoskinson was one of the founders of Ethereum but was later expelled from the group. The two now appear to have made peace.