Cardano CEO suggests shutting down the Bitcoin network and moving all coins to other blockchains

According to Charles Hoskinson, this will increase the energy efficiency of the asset and solve the problem of the exponentially increasing difficulty of its mining

04.10.2022 - 12:10

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2 min

What’s new? Cardano blockchain CEO Charles Hoskinson published a video on bitcoin and various aspects of mining the asset. In the video, he noted the usefulness of the first cryptocurrency, agreeing with the thesis that it is “digital gold.” At the same time, Hoskinson believes that the Bitcoin network, which operates on the Proof of Work (PoW) consensus algorithm, should be shut down and all existing coins should be moved to other blockchains.

Full video version

What statements did Hoskinson make? In his opinion, all bitcoins already mined, which number more than 19 million, could be converted into wrapped coins (wBTC) on more energy-efficient smart contract platforms such as Ethereum or Cardano, which would expand the uses of the asset.

Hoskinson stressed that most bitcoins are already mined, and mining new coins is exponentially more difficult. Should the network shut down and transfer BTC to other blockchains, the wrapped coins would trade at the same value as they do now. In addition, as new coins become impossible to mine, bitcoin will become a more scarce resource while maintaining its usefulness and economy.

As of October 4 at 12:15 UTC, BTC is trading at $19 960, having gained 3,82% in 24 hours, according to the cryptocurrency exchange Binance. The asset has a market capitalization of $382,889 billion, according to aggregator CoinGecko.

Earlier, the head of Cardano said that new White House recommendations on crypto regulation could lead to a complete ban on bitcoin. For example, the Office of Science and Technology Policy called on federal agencies to create environmental standards for mining.

According to analytics platform CryptoRank at the end of August, the number of permanently lost bitcoins exceeded 4,7 million. Since the issue of the first cryptocurrency is programmatically limited to 21 million coins, the loss of some assets means that the actual circulating supply will never reach a similar mark.

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