IOHK CEO and Ethereum co-founder Charles Hoskinson has argued that Bitcoin (BTC) has a significant competitive disadvantage due to its slow speeds and is being usurped by proof-of-stake networks.
In a five-hour podcast with computer scientist and AI researcher Lex Fridman, the founder of Cardano argued that proof-of-stake networks offer superior speed and functionality over the original cryptocurrency:
“The problem with Bitcoin is that it’s so slow – it’s like mainframe programming of the past. The only reason it’s still there is because so much is being invested to keep it going. “
“You have to upgrade the damn thing!” Hoskinson exclaimed regarding Bitcoin’s underlying proof-of-work consensus mechanism, emphasizing that Bitcoin’s programmatic utility lags behind its competitors.
Hoskinson also criticized the Bitcoin community for being reluctant to innovate beyond the base tier of cryptocurrency, and also described Bitcoin’s second tier scaling solutions as “very fragile”.
“It [Bitcoin] is his own worst enemy. It has the network effects, it has the brand name, it has the regulatory approval. But there is no way to change the system, even to correct the obvious disadvantages of this system. “
However, Cardano’s founder argued that Ethereum grew to compete with Bitcoin’s network but has a nimble development culture that includes evolution.
“What’s really cool is that Ethereum doesn’t have this problem […] It gets to the point where it has the same network effect as Bitcoin, but the community has a completely different culture. They love to evolve and upgrade, ”he said, adding:
“If I only had to bet between these two systems, I would say that Ethereum will win the battle against Bitcoin nine times out of ten.”
However, Hoskinson acknowledged that the battle for crypto dominance is a “much more complex game” than the competition between Bitcoin and Ethereum, claiming that many other blockchains are now vying for large blockchain market shares, unsurprisingly naming Cardano among others .