Input Output CEO Charles Hoskinson has questioned Bitcoin’s ability to become the world’s reserve currency in an interview.
While the crypto monarch enjoys the advantage of being the first to market. Then, Cardano’s founder believes that the cryptocurrency’s rising energy usage will contribute to increased centralization. He believes that adopting an energy-intensive procedure when there are more efficient alternatives is pointless.
Hoskinson rejects the notion that scarcity is caused by a high cost of production. That’s, saying that scarcity is caused exclusively by the underlying asset’s monetary policy and utility:
“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.”
Smart contracts, metadata standards, and systems with high throughput that may reach millions of transactions per second would all be required in a digital standard. While Bitcoin cannot now provide any of these services, Hoskinson believes the original cryptocurrency will “definitely change.”
The bitcoin entrepreneur also stated that a product like this was “not hard” to develop.
As America’s national debt grows, Hoskinson expects that “de-dollarization” will continue to occur, with individuals migrating to different monetary standards.
He does not, however, anticipate nation-states to abandon the US dollar suddenly.
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