Cardano founder Charles Hoskinson thinks Bitcoin’s price could skyrocket to between $250,000 and $500,000 in the next two years. He shared this prediction during a livestream in late November 2024.
Why Such a Huge Jump?
Hoskinson, who’s also a co-founder of Ethereum, says this massive price increase is due to two main factors:
- Governments Buying Bitcoin: He believes governments are starting to see Bitcoin as a strategic asset, leading to significant investment.
- Bitcoin’s DeFi Boom: Recent upgrades to Bitcoin, like Taproot, BitVM, and FairGate, are opening the door for decentralized finance (DeFi) applications on the Bitcoin network. Hoskinson predicts that Bitcoin’s DeFi will completely overshadow other blockchains within two to three years. He points to Bitcoin’s massive scale and liquidity as key advantages.
Cardano’s Role in the Bitcoin DeFi Revolution
Hoskinson also sees a big role for Cardano in this Bitcoin DeFi explosion. He wants to make sure Cardano isn’t left behind. The plan? To create hybrid apps that work on both Bitcoin and Cardano networks.
This would involve using “wrapped BTC” tokens on the Cardano blockchain. These tokens would let people use their Bitcoin in Cardano’s DeFi apps without giving up control of their coins or relying on centralized exchanges. Crucially, Hoskinson emphasizes that these solutions need to let users pay directly with Bitcoin, avoiding the use of other tokens.
To make this happen, Hoskinson and his team are working on several things:
- Babel Fees: Allowing users to pay transaction fees using Bitcoin.
- Collaboration with Key Players: Partnering with experts like Sergio Lerner (known for his work on FairGate and BitVM).
- Technological Advancements: Successfully testing advanced cryptographic proofs (Halo 2) on Cardano’s mainnet with incredibly low transaction fees.
- Wallet Upgrades: Planning to add Bitcoin support to the Cardano Lace wallet in 2025.
- Community Engagement: Reaching out to groups like the Ordinals community.
In short, Hoskinson is bullish on Bitcoin and sees a bright future for its DeFi ecosystem, with Cardano playing a significant supporting role. He’s committed to making the interoperability between the two happen.
