The CEO of IOHK, founder of Cardano, and co-founder of Ethereum, Charles Hoskinson argues that Bitcoin is at a major competitive disadvantage in the market against Ethereum due to its slow pace and will be usurped the latest proof-of-stake networks.
During a five-hour-long podcast with computer scientist and AI researcher Lex Fridman, Hoskinson stated that proof-of-stake networks are superior to proof-of-work networks. He explained that PoS networks are faster, more efficient, and better in general functionality than the original PoW network.
Hoskinson also argued that one of Bitcoin‘s major issues is the slow pace of its network. He claimed that Bitcoin only exists now due to the amount of investment poured into the network, otherwise, its mainframe programming belongs to the past.
Because of its programming, Hoskinson emphasized that Bitcoin’s network needs a significant upgrade. The underlying PoW consensus mechanisms need to be revamped since Bitcoin’s programming utility is lagging considerably behind its competitors in the market.
He also criticized the community of Bitcoin enthusiasts for its reluctance to innovate Bitcoin beyond its base layer. He also stated Bitcoin’s second-layer scaling solutions were highly fragile.
Bitcoin is its own worst enemy in that it has network effects, is approved for regulations, and has a brand name in the market, but it does not improve beyond that, Hoskinson stated.
Hoskinson argued that despite the fact that Ethereum has grown to rival Bitcoin, the former blockchain network is nimble in its development and innovation. He added that, unlike Bitcoin, Ethereum keeps evolving with upgrades, and the community pushes the innovation as well.
When it came to battling for crypto dominance, Hoskinson acknowledged that the leading competition for dominance is a complex game, and now several blockchains are struggling for dominance, including Cardano.