While several people believe Bitcoin may someday become the world's reserve currency, Input and Output CEO Charles Hoskinson stood out, doubting the reality of the statement.
Bitcoin's power consumption could hinder its adoption
During a recent interview, Hoskinson pointed to Bitcoin's energy consumption as the first factor that could hinder the asset's adoption worldwide.
According to him, in an industry where decentralization is a priority, Bitcoin's high energy consumption would increase centralization.
He believes that rather than using an energy-intensive process, the industry should focus on efficient alternatives with less energy consumption.
Illustrating the situation, he disagreed with the statement "scarcity comes from a high cost of production".
"If you produce paintings and one you have to paint by hand while the other you can do it with the machine and they are both identical, and the demand is the same for both, you are just spending a thousand times more to do one than the other" .
This is not the first time that issues have been raised about Bitcoin's high energy consumption (here the quotation in real time). Many skeptics have always pointed out that Bitcoin's energy use causes damage to the environment; however, cryptocurrency enthusiasts believe the activities could incentivize the use of renewable energy.
Cardano and other smart contract-enabled assets could become the world's reserve currency
Cardano's founder further added that any digital asset that could fill that void and qualify as the "reserve currency of the world" must offer services such as smart contracts, metadata standards, and improved throughput that completes huge transactions per second.
Notably, all of this is lacking in Bitcoin, as the asset cannot offer all of these conditions currently.
This means that digital assets such as Ethereum, Cardano, Solana and other smart contract-enabled assets have the potential to cement their position as a global reserve currency.
However, it should be noted that Jack Dorsey's Square is currently working to bring decentralized finance to Bitcoin, meaning the asset may someday have smart contract capabilities.
In his take on de-dollarization, the crypto billionaire noted that it wouldn't happen in a single day. Hoskinson said the possibility of him would become much clearer as America's national debt profile rises as people transition to different monetary standards.
And what do you think of Hoskinson's statements? Is he just trying to pull water at his mill, or is he telling the truth? Please let us know by writing us in the comments section below.
