In a video posted on his Twitter and YouTube accounts on October 3rd, Cardano founder Charles Hoskinson outlined several reasons why Bitcoin will likely depart from its network in the coming years.
Bitcoin is Digital Gold. Let's talk about the mine… https://t.co/fTJEsOeGQS
— Charles Hoskinson (@IOHK_Charles) October 3, 2022
The founder of Cardano began by complimenting Bitcoin as a project with good usage and utility. He also concurred that digital gold might be used to describe Bitcoin.
Although block generation rewards miners with bitcoins, production expenses are still associated with using resources and a lot of energy.
Using the analogy of gold and gold mines, Charles compared Wrapped Bitcoin (WBTC) with Bitcoin mining. The quantity of gold that would be available would probably be more valuable if gold mines were ineffective.
About 19 of the 21 million Bitcoins have now been mined, and he emphasized that the network ‘might’ quickly shut down at any time. When that occurs, the energy-intensive PoW approach of mining stops, the bitcoin network becomes useless, and all that is available for users are Wrapped Bitcoins (WBTC) stored on other blockchains.
He made a point towards the end of the video about how Bitcoin is currently only optimized to be a gold mine. It is not for use as a payment network, a means of carrying out complex transactions, or a platform for users to run DApps or issue assets. The effort to build on it has not been progressive as well.
The existence of Wrapped Bitcoin is a result of cryptocurrency enthusiasts realizing that you can get rid of the gold mine while keeping the gold (WBTC). On smart contract networks, Wrapped Bitcoins (WBTC) can be utilized as a stablecoin. It preserves its value while having all the characteristics of Bitcoin.
Although he predicted that there would be more bitcoin outside of the Mainchain than inside of the Mainchain, he nonetheless claimed that the Bitcoin platform would not shut down because Bitcoin Maxis would find a way to keep it relevant. The Bitcoin community should be aware, he continued, that Wrapped Bitcoin (WBTC) is still Bitcoin as long as it can be connected to the energy-intensive cost of production.
