Cardano creator Charles Hoskinson predicts ‘far superior’ versions of Bitcoin will break into crypto markets

Cardano (ADA) creator Charles Hoskinson reveals his take on the value proposition of Bitcoin (BTC) as it is increasingly used in the decentralized finance (DeFi) arena.

Hoskinson believes that “wrapped” coins that are pegged to the price of Bitcoin will spread like wildfire across a wide swath of smart contract-enabled blockchains.

Wrapped tokens have gained popularity by giving investors, in this case Bitcoin holders, a way to trade and use their BTC in decentralized applications.

“My prediction is that within five years, the majority of Bitcoin will not be on the Bitcoin network, but will actually be floating around on other networks…

Cast [wrapped] Bitcoin will be used in all kinds of DApps [decentralized applications] and smart contracts.

[It] It could potentially even be used by nation-states to create a medium of exchange in a unit of account to have a stable currency that they can use for daily transactions within their ecosystem with sound monetary policy.

It’s important to understand that whether it’s Bitcoin living on the Bitcoin network or Bitcoin living on another network, it’s still Bitcoin.”

Hoskinson says that wrapped Bitcoin is “far superior” to regular Bitcoin, as wrapping the flagship crypto asset enhances its utility value.

“In practice, users of the system are already putting it [Bitcoin] in the legacy financial system. At least by wrapping them in cryptocurrency, you have self-custody and smart contract-based custody and all these other things.

It’s far superior to the way it’s currently used with the infrastructure there.”

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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