While several people believe Bitcoin would one day become the world’s reserve currency, CEO of Input and Output, Charles Hoskinson, has singled himself out, doubting the reality of the statement.
Bitcoin Energy Consumption Could Hinder its Adoption
During a recent interview, Hoskinson pointed to Bitcoin energy consumption as the first factor that could hinder the adoption of the asset across the globe.
According to him, in an industry where decentralization is a priority, Bitcoin’s high energy consumption would increase centralization.
He believes that rather than using an energy-intensive process, the industry should focus on efficient alternatives with less energy consumption.
While illustrating the situation, he established his disagreement with the statement “scarcity comes from a high cost of production.”
“If you produce paintings and one you have to paint by hand while the other you can do with the machine and they both look identical, and the demand is the same for both, you are just spending a thousand times more effort to do one versus the other.”
This is not the first time issues have been raised about Bitcoin’s high energy consumption. Many skeptics have always highlighted how Bitcoin’s energy usage causes harm to the environment; however, crypto enthusiasts believe that the activities could incentivize renewable energy usage.
Cardano and Other Smart Contract-enabled Asset Could Become World’s reserve currency
The Cardano founder further added that any digital asset that would fill that vacuum and get the title of the “world’s reserve currency” must offer services such as smart contracts, metadata standards, and improved throughput that complete enormous transactions per second.
Notably, all these are lacking in Bitcoin, as the asset cannot offer all those conditions presently. This means digital assets like Ethereum, Cardano, Solana, and other smart contract-enabled assets have the potential to cement their position as a global reserve currency.
However, it should be noted that Jack Dorsey’s Square is currently working on bringing decentralized finance to Bitcoin, meaning that the asset could someday have smart contract capability.
In his opinion about de-dollarization, the crypto billionaire noted that would not happen in a single day. Hoskinson said its possibility would become much clearer as America’s national debt profile rises when people switch to different monetary standards.