It is “not impossible” for Cardano to command the world’s reserve currency, says Charles Hoskinson, CEO of Input Output
During a recent interview, Input Output CEO Charles Hoskinson questioned bitcoin’s potential to become the world’s reserve currency.
While the crypto king has a first mover advantage, the Cardano founder believes that its increasing energy consumption will contribute to increased centralization. He is convinced that there is no point in using an energy-intensive process when there are more efficient options.
Hoskinson does not buy into the claim that scarcity comes from a higher cost of production, claiming that it is really only derived from the monetary policy of the underlying asset and its utility:
If you make a painting and one you have to paint by hand while the other you can do with a machine and they both look the same, and the demand is the same for both, you’re a thousand times more likely to do one versus the other. are trying. other.
A digital standard would have to offer smart contracts, metadata standards, and systems with high throughput that can reach millions of transactions per second. Although bitcoin may not provide any of these things right now, Hoskinson predicts that the native cryptocurrency “could certainly evolve.”
The cryptocurrency billionaire also said that it was “not impossible” to have a product like
no light switch
Hoskinson predicts that “de-dollarization” will continue as the US national debt continues to rise, with people moving to different monetary standards:
It’s just going to come down to what nation-states think they need.
Still, he doesn’t expect nation-states to drop the US dollar overnight:
It wouldn’t be like a light switch, where all of a sudden we turned away from the dollar, it would be more like a glider.