Saturday, December 3, 2022
HomeAltcoinsCardano founder Charles Hoskinson advocates ban on Bitcoin mining

Cardano founder Charles Hoskinson advocates ban on Bitcoin mining

In a tweet on October 3, Cardano founder Charles Hoskinson explained why he believes Bitcoin mining should be stopped and all existing units of the asset converted into wrapped Bitcoin (wBTC). Wrapped Bitcoin is BTC on systems that support smart contracts, such as Ethereum (ETH), Cardano (ADA), and others.

If Bitcoin’s network is shut down, the main digital currency can still exist as wrapped Bitcoin on other networks, according to Hoskinson. According to him, the industry does not require the proof-of-work consensus process since it is the “gold mine” to obtain the asset.

Hoskinson pointed out that the Bitcoin blockchain is now primarily suited for mining. Efforts to build atop the blockchain, he claims, have had limited success since it is not meant for that purpose.

Charles Hoskinson’s Tweet:

Cardano’s inventor emphasised that Bitcoin’s “gold mine” consumes a lot of energy, despite the fact that the amount of BTC remaining to mine is less than what is presently in circulation. He argued that continuing to run Bitcoin mining is not a wise use of energy.

Meanwhile, Hoskinson admitted that Bitcoin maximalists would disagree with his proposal since “[PoW] is the source of truth and a counter-balance to banks.”

According to Hoskinson, wrapping every mined Bitcoin into the larger crypto ecosystem can help widen its usage and popularity. Hoskinson stated, citing El Salvador’s adoption, that while Bitcoin is digital gold with genuine use and may serve as a decent store of value, the asset is not a viable means of exchange or unit of account due to its volatility.

Wrapped Bitcoin, for example, might be used to generate stablecoins that can be used as a means of trade and a unit of account since they exist on other smart contracts-enabled networks designed for such purposes.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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