Charles Hoskinson: Bitcoin will lose to Ethereum in the competitive race

Bitcoin is too slow compared with Ethereum and other Proof-of-Stake–based networks, and will lose in the competition, according to Charles Hoskinson, the head of IOHK—the company behind Cardano—speaking on the podcast of Lex Fridman, an MIT researcher.

‘The problem with Bitcoin is that it is too slow. It is like programming on the mainframes of a previous generation. The only reason it still exists is because a lot of money has been invested in backing it,’ Hoskinson said.

Speaking about the PoW algorithm underlying digital gold, the Cardano founder emphasized that the developers behind Bitcoin ‘must update this damn thing’. He explained that the software capabilities of the first cryptocurrency lag behind its competitors, including in terms of functionality.

Hoskinson also criticized the Bitcoin community for unwillingness to adopt innovations beyond the core technology. He described the second-layer scaling solution as ‘extremely brittle’.

‘The gravest enemy of Bitcoin is itself. It possesses network effects, a prestigious brand, regulatory approval. Yet there is no way to change the system, even while correcting its obvious flaws,’ he noted.

The specialist contrasted digital gold with Ethereum. In his view, the network of the second-largest cryptocurrency has grown to a level sufficient to compete with Bitcoin. At the same time, it possesses a ‘more flexible development culture’.

‘If I had to bet on the showdown between these two systems, I would say that nine times out of ten Ethereum will win,’ Hoskinson added.

In the IOHK chief’s view, the battle for dominance in crypto is not a contest between Bitcoin and Ethereum but a ‘much more complicated game’. He noted that many other blockchains, including Cardano, are vying for a main share of the market.

In April 2021, Hoskinson called Proof-of-Work ‘expensive to nowhere’ and urged to abandon this algorithm.

Earlier in May, the Cardano founder said that cryptocurrencies are ‘an antidote’ to corrupt central banks.

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