Bitcoin not cut out to be “world’s reserve currency”: Charles Hoskinson

Input Output CEO Charles Hoskinson has some reservations when it comes to Bitcoin’s prospects of becoming the world’s reserve currency.

In an interview with crypto entrepreneur Jebb McAfee, the Cardano and Ethereum co-founder expressed apprehension towards the increasing centralization of Bitcoin as a result of the network’s growing energy consumption.

I interviewed @IOHK_Charles! We discussed Decentralization, Inclusive Accountability, Governance, Distrust of modern governments, and how Charles & Team are solving all of these dilemmas with the most rigorously tested blockchain in history: #Cardano #ADAhttps://t.co/cAqhR0oZMs

— Crypto Jebb (@CryptoJebb) February 13, 2022

Critics of the Bitcoin network have pointed out that it is slowly becoming more centralized as only a small number of Bitcoin miners control the majority of the hashing power. Hoskinson believes that while Bitcoin is the pioneer of the crypto ecosystem, there is no point in using an “energy-intensive process” when there are energy-efficient options available.

He further dismantled an argument that is often claimed by Bitcoin proponents that “scarcity comes from a high cost of production.” Explaining his point, Hoskinson offered an example:

“If you produce paintings and one you have to paint by hand while the other you can do with the machine and they both look identical, and the demand is the same for both, you are just spending a thousand times more effort to do one versus the other.”

However, Hoskinson wasn’t completely opposed to the idea and noted that Bitcoin could “certainly evolve” by offering services such as smart contracts, metadata standards, and systems with improved throughput. Notably, he remarked that it was “not impossible” for Cardano to hold the position as the world’s reserve currency, especially after the Alonzo hard fork.

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