Cardano founder Charles Hoskinson defined why he thinks Bitcoin mining ought to be stopped and all present items of the property ought to be transformed into wrapped Bitcoin (wBTC) in an Oct. 3 Twitter broadcast.
Wrapped Bitcoin is BTC on sensible contracts-enabled platforms like Ethereum (ETH), Cardano (ADA), and others.
Bitcoin’s PoW is the “gold mine” – Charles Hoskinson
In keeping with Hoskinson, if Bitcoin’s community is shut down, the flagship digital asset can live on as wrapped Bitcoin on different networks. In his view, the business wouldn’t want the proof-of-work consensus mechanism as a result of it’s the “gold mine” to get the asset.
Hoskinson identified that the Bitcoin blockchain is simply optimized for the mining course of presently. In keeping with him, efforts to construct on the blockchain have recorded little success as a result of it’s not designed for that function.
The Cardano founder highlighted that Bitcoin’s “gold mine” consumes a variety of vitality, contemplating that the variety of BTC left to mine is lower than what’s already in circulation. He said that the continued working of Bitcoin mining shouldn’t be funding of vitality.
In the meantime, Hoskinson conceded that Bitcoin maximalists wouldn’t agree together with his thought as a result of they’d argue that “[PoW] is the supply of reality and a counter-balance to banks.”
Wrapped Bitcoin will broaden BTC utilization.
Hoskinson said that transferring all mined Bitcoin to the broader crypto ecosystem by way of wrapping will help broaden its utilization and adoption.
Citing El Salvador’s adoption, Hoskinson stated that whereas Bitcoin is digital gold with actual utility and may act as retailer of worth, the asset shouldn’t be technique of change and unit of account due to its volatility.
So, wrapped Bitcoin might be used to create stablecoins that may function a way of change and unit of account as a result of they’re on different sensible contracts-enabled networks constructed for these functions.
Hoskinson stated:
“[Wrapped Bitcoin] might be utilized in all types of Dapps and sensible contracts and probably be utilized by nation-states to create a way of change and unit of account to really have a secure forex they may use with a sound financial coverage.”
In keeping with him, the wrapped Bitcoin remains to be Bitcoin as a result of it could nonetheless have all of the properties and options of the asset.
Hoskinson predicted that extra wrapped Bitcoin could be on different blockchain networks within the subsequent 5 years.
