Cardano Founder: Bitcoin DeFi Will Dominate Crypto
02 Dec, 2024 ● Crypto people
Cardano founder Charles Hoskinson expressed his belief that decentralized finance (DeFi) within the Bitcoin ecosystem will surpass all other crypto DeFi platforms within the next two to three years.
In a YouTube video posted on Nov. 27, Hoskinson highlighted Bitcoin DeFi’s potential, shared a bold price prediction, and introduced a new model for bridging Bitcoin without relying on centralized exchanges.
“I started in the Bitcoin space and I loved Bitcoin. Bitcoin has been a big part of my life and the only reason I’m here today is because Bitcoin exists,” he said.
Hoskinson reflected on the challenges of using Bitcoin in its early days, stating:
“Bitcoin went from a sleeping giant never to awaken in an innovation coma, to an awakened giant that is four times the size of Solana and Ethereum combined.”
He continued, “DeFi in the Bitcoin ecosystem will eclipse DeFi in all ecosystems in the cryptocurrency industry within 24 months to 36 months, and that’s just because of scale and liquidity.”
He also referenced ongoing discussions about governments potentially considering Bitcoin as part of their strategic reserves.
“It is my belief that Bitcoin is going to go to $250,000 to $500,000 within the next 12 to 24 months because of the investment inflows and the great interest that has been achieved,” Hoskinson said.
“Simply put, Bitcoin is the store of value for the internet, and it will remain in that role for the foreseeable future now that it has a DeFi layer,” he added, while explaining a new model that brings DeFi functionality to Bitcoin through Cardano’s network, which he called “DeFi mode.”
Hoskinson explained that users can “enable DeFi mode” by bridging their Bitcoin to a wrapped token on Cardano.
This mechanism allows Bitcoin holders to engage in DeFi activities, trade on decentralized exchanges, utilize yield-generating instruments, and retain control of their private keys.
A Cardano-Bitcoin bridge, leveraging the Grail protocol, was announced in October by a development team supporting Cardano.
According to the protocol’s specifications, this bridge could serve as a foundational step toward enabling DeFi applications secured by Bitcoin.
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