Charles Hoskinson, founder of Cardano and co-founder of Ethereum, predicts that Bitcoin will reach between $250,000 and $500,000 in the next 12 to 24 months. occur during a live feed On November 26, 2024, Hoskinson attributed this potential increase to governments talking about a strategic reserve of Bitcoin and integrating decentralized finance (DeFi) capabilities into the network.
Why will Bitcoin reach $500,000?
Hoskinson, who began his cryptocurrency career with Bitcoin, expressed renewed enthusiasm about the future of the native cryptocurrency. “Revealing this and after reviewing the technology I realized it actually had a path to work reinvigorated my love for the ecosystem because Bitcoin went from a sleeping giant that never woke up in an innovation coma to an awakened giant.”
He acknowledged the progress made possible by Bitcoin’s Taproot upgrade, which, combined with technologies like BitVM and FireGate, enables a degree of programmability that was previously unattainable on the Bitcoin network. These innovations allow the creation of a DeFi layer on top of Bitcoin.
Hoskinson predicted that decentralized finance within the Bitcoin ecosystem will overtake all other blockchain ecosystems within the next two to three years. “I believe DeFi in the Bitcoin ecosystem will overtake DeFi in all ecosystems in the cryptocurrency industry within 24 to 36 months,” he asserted.
He attributed this expected dominance to Bitcoin’s unparalleled size and liquidity, noting, “As much as Ethereum can be, and Solana can be, and Carduno can be, let’s be intellectually honest about this. Governments are talking about a strategic reserve of Bitcoin and Bitcoin.” Alone, it is the entry point and perhaps within five, 10 or 15 years this dialogue will change.
The Cardano founder expects that this factor will significantly increase the price of Bitcoin. “I think the price of Bitcoin will rise to a quarter of a million to half a million dollars over the next 12 to 24 months due to the investment inflows and huge interest that has been generated,” Hoskinson predicted.
Cardano x Bitcoin DeFi
Speaking about the potential impact of Bitcoin’s DeFi space, Hoskinson emphasized the importance of Cardano’s involvement. “One of my big strategic priorities in 2025 is making sure Cardano is not left out of this story,” he said. He highlighted Cardano’s suitability as a platform for developing hybrid applications running on the Bitcoin and Cardano networks.
Hoskinson explained how Cardano can facilitate interoperability with Bitcoin through the use of encapsulated Bitcoin tokens on the Cardano blockchain, which is enabled by trustless bridge mechanisms and virtual machines such as BitVM. These bridges will allow Bitcoin holders to participate in DeFi activities on Cardano without giving up custody of their assets or relying on centralized exchanges.
Acknowledging the Bitcoin community’s preference to use Bitcoin exclusively, Hoskinson emphasized that any interoperability solutions must be in line with this ethos. “It’s very clear to me that this model should and must include an option where you always pay with your bitcoin. Other tokens taint this narrative and, frankly, will ensure the project fails,” he explained.
By leveraging technologies like Babel Fees, Hoskinson aims to allow users to pay transaction fees in Bitcoin, maintaining a seamless experience for Bitcoin users transacting with DeFi on Cardano.
Hoskinson revealed ongoing collaboration with key figures in the field, including Sergio Lerner, known for his work on FairGate, BitVM, and BitVMx. He also mentioned the successful testing of Halo 2 verification on the Cardano mainnet, an important achievement that demonstrates Cardano’s ability to handle advanced cryptographic proofs with minimal transaction fees.
“On the Cardano mainnet, thanks to Plutus V3, we tested the first verification of Halo 2 (…) The transaction fee for this is just 2 ADA for a very large proof,” noted Hoskinson.
Looking to the future, Hoskinson outlined plans to upgrade the Cardano Lease wallet to support Bitcoin in 2025, enhancing interoperability and user experience. “LACE’s decentralized app store will enable decentralized finance similar to Bitcoin,” he said. He also expressed his intention to engage with other participants in the Bitcoin ecosystem, such as the Ordinals community, to foster collaboration.
Hoskinson concluded by reiterating his commitment to advancing Bitcoin and Cardano interoperability: “We’re just going to get it done. We’ll figure it out one way or another, and that’s a top priority for us.”
At press time, ADA was trading at $0.9768.
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