Cardano Founder Predicts Bitcoin DeFi Boom, Reversing Previous Stance

Charles Hoskinson, founder of Cardano, now believes decentralized finance (DeFi) applications on the Bitcoin network will surpass those on Ethereum and Solana, a sharp contrast to his previous skepticism about Bitcoin’s future.

This shift in perspective follows a recent partnership between Cardano and BitcoinOS, which aims to bridge the gap between the two blockchains and enable smart contract functionalities on Bitcoin, opening the door for a new wave of decentralized applications. On October 25, Hoskinson took to Twitter to express his enthusiasm for the integration, stating his intention to actively support its development.

“With Babel Fees, they’ll be able to write Aiken and pay fees in Bitcoin. This is just the beginning. The DeFi coming to Bitcoin will dwarf Ethereum and Solana,” Hoskinson declared, referencing Aiken, a programming language used for building smart contracts on Cardano, and Babel Fees, a mechanism that allows users to pay transaction fees on Cardano using other cryptocurrencies, including Bitcoin.

Source: X

From Skeptic to Advocate: A Change of Heart

Hoskinson’s newfound optimism marks a significant departure from his previous stance on Bitcoin. Just a few months prior, in a widely circulated video, he questioned Bitcoin’s relevance in the evolving cryptocurrency landscape. He asserted that while Bitcoin relied on the industry for its survival, the industry itself no longer needed Bitcoin.

“Bitcoin needs the industry to survive… But the industry doesn’t need Bitcoin anymore. I just don’t see how that survives. It’s a religion, its not an ecosystem. So no, we don’t necessary need Bitcoin,” he stated at the time.

However, the recent collaboration between Cardano and BitcoinOS, specifically the implementation of the BitcoinOS Grail bridge, appears to have swayed his opinion. This bridge enables the seamless interaction between the two blockchains, facilitating the development of DeFi applications on the Bitcoin network.

Empowering Developers and Expanding Bitcoin’s Capabilities

To further bolster the integration, Hoskinson has announced plans to relaunch the Bitcoin Education Project in 2025, providing developers with the necessary resources and knowledge to build on the Bitcoin network. He also intends to offer training on Aiken and introduce tools that enable the creation of hybrid Cardano-Bitcoin applications.

“This marks the beginning of DeFi on Bitcoin, and [I] believe that it could surpass the achievements of both Solana and Ethereum in the future,” Hoskinson elaborated.