Bitcoin PoW Is A “Gold Mine” – Charles Hoskinson
According to Hoskinson, if Bitcoin’s network were to shut down, the flagship digital asset could continue to exist as wrapped Bitcoin on other networks. In his view, the industry does not need a proof-of-work consensus mechanism because it is a “gold mine” for acquiring assets.
Hoskinson pointed out that the Bitcoin blockchain is currently optimized only for the mining process. Attempts to build on the blockchain, he said, have met with little success because it was not designed for that purpose.
Cardano founder stressed that Bitcoin “gold mines” consume a lot of energy. This is considering that the number of his BTC left in mining is less than what is already in circulation. He said that a continuous run of Bitcoin mining is not a good investment of energy.
Hoskinson, on the other hand, admitted that Bitcoin maximalists would disagree with him.[PoW] A source of truth and a counterbalance to the bank. ”
Wrapped Bitcoin expands the use of BTC.
Hoskinson said moving all mined bitcoin into the broader crypto ecosystem through wrapping could expand its use and adoption.
Citing El Salvador’s adoption, Hoskinson said Bitcoin is digital gold with real utility and can serve as an excellent store of value, but the asset’s high volatility makes it an excellent asset. It is not a medium of exchange or a unit of account.
As such, wrapped Bitcoins can be used to create stablecoins that serve as a medium of exchange and unit of account. Because it is on other smart contract enabled networks built for these purposes.
“[Wrapped Bitcoin] It can be used in all sorts of Dapps and smart contracts, and could be used to create a medium of exchange and unit of account for nations to actually have a stable currency that they can use with sound monetary policy. ”
According to him, a wrapped bitcoin still has all the properties and features of an asset and thus remains a bitcoin.
Hoskinson predicted that more wrapped bitcoins will be used on other blockchain networks in the next five years.