The CEO of IOHK, the Cardano developer, Charles Hoskinson, questioned the prospects of proof-of-work, noting Bitcoin’s hash rate fell sharply in April.
Proof of stake doesn’t suffer from this problem https://t.co/RksQMW4Y5z wake up people! Nakamoto consensus is a road to nowhere
— Charles Hoskinson (@IOHK_Charles) April 18, 2021
According to Dovi Wan, managing partner at Primitive Ventures, on April 16 the total mining power in the Bitcoin blockchain fell by 30%. This was the result of electricity outages due to safety checks after explosions and floods at coal mines in several Chinese provinces.
By the morning of April 19, more than 100,000 transactions had accumulated in the Bitcoin mempool. The average daily transaction fees reached $35.
“People, wake up! In Proof-of-Stake such a situation is impossible. Nakamoto consensus is a road to nowhere”, — Hoskinson said.
Earlier, the head of IOHK noted the start of a activation of the Shelley upgrade in July 2020 and the start of a big migration of value to Proof-of-Stake networks such as Ethereum 2.0, Polkadot and others. Cardano abandoned Proof-of-Work after activation of the Shelley upgrade in July 2020.
“The problem with Bitcoin is that, due to its nature, it will never get better. The more successful it is, the higher the price; the higher the price, the more competition and higher energy costs to mine the first cryptocurrency”, — explained then Hoskinson.
In the latest podcast he also touched on Dogecoin’s rising popularity (DOGE). From April 15 to 16, the coin temporarily entered the top-5 of crypto assets by market capitalization. This was preceded by Elon Musk Mark Cuban and other celebrities.
“In the DOGE industry, DOGE has always been seen as a joke. But thanks to Musk and whales, the coin’s price has soared to the stratosphere, boosting demand from new market participants. Let’s be frank: this is a bubble. It will burst and deprive many retail investors of their money,” he explained.
Hoskinson suggested that a drop in DOGE’s price would attract the attention of regulators. Ultimately this would lead to tighter regulatory requirements, he said.
The head of IOHK compared Dogecoin with third-generation blockchain projects. According to him, the latter possess capital and larger teams that seek to create value in use-case scenarios. By contrast, DOGE is merely a copy of Bitcoin without original technology and developers, Hoskinson said.
In February 2021, Dogecoin overtook Bitcoin in popularity on Twitter.
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